Is Mettler-Toledo International, Inc. overvalued or undervalued?

As of 4 May 2023, Mettler-Toledo International, Inc. has moved from an attractive to a risky valuation grade, indicating a shift towards being overvalued. The company appears to be overvalued, particularly when considering its P/E ratio of 59, an EV to EBITDA of 43.00, and a PEG ratio of 5.29, which are significantly higher than industry peers. For instance, Edwards Lifesciences Corp. has a P/E of 31.17, while Agilent Technologies, Inc. shows a more reasonable P/E of 27.42, suggesting that Mettler-Toledo's valuation is not justified relative to its competitors.
Moreover, the company's recent performance reflects this valuation concern, as it has underperformed against the S&P 500 across multiple periods, including a 1Y return of -8.24% compared to the S&P 500's 17.14%. This trend reinforces the notion that Mettler-Toledo may be overvalued in the current market environment.