3M Stock Valuation

MMM
 Stock
  

USD 148.41  1.00  0.68%   

What is the enterprise value of 3M? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as 3M, is its stock price multiplied by the total number of shares outstanding, calculating 3M's enterprise value requires a different approach. It uses 3M's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is expected to hike to about 6 B this year. Enterprise Value is expected to hike to about 123.2 B this year.
3M Company owns a latest Real Value of $158.12 per share. The recent price of the firm is $148.41. At this time, the firm appears to be undervalued. Our model approximates the value of 3M Company from evaluating the firm fundamentals such as Shares Owned by Insiders of 0.09 %, return on asset of 8.93 %, and Shares Outstanding of 569.6 M as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued equities and dropping overvalued equities since, sooner or later, asset prices and their ongoing real values will grow together.
  
3M Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as 3M's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

3M Most Recent Valuation Data

Price Book
5.94
EPS Estimate Next Quarter
2.74
Price Sales
2.4
Forward Annual Dividend Yield
0.0415
EBITDA
8.6 B
Dividend Share
5.94
Ex Dividend Date
2022-05-19
Undervalued
Today 148.41
Please note that 3M's price fluctuation is very steady at this time. Calculation of the real value of 3M Company is based on 3 months time horizon. Increasing 3M's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for 3M Company is useful when determining the fair value of the 3M stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of 3M. Since 3M is currently traded on the exchange, buyers and sellers on that exchange determine the market value of 3M Stock. However, 3M's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
133.64
Downside
158.12
Real Value
159.62
Upside
Estimating the potential upside or downside of 3M Company helps investors to forecast how 3M stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of 3M more accurately as focusing exclusively on 3M's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
9.759.859.90
Details
Hype
Prediction
LowEstimated ValueHigh
147.00148.50150.00
Details
15 Analysts
Consensus
LowTarget PriceHigh
172.00188.54215.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use 3M's intrinsic value based on its ongoing forecasts of 3M's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against 3M's closest peers. When choosing an evaluation method for 3M Company, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

3M Investments

206.29 Million

3M Valuation Drivers Correlation

Many accounts on the financial statements of 3M Company are highly interrelated and sometimes correlated. Consequently, when conducting 3M's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of 3M
Click cells to compare fundamentals

3M Valuation Trend

Knowing 3M's actual value is paramount for traders to make sound investment determinations. 3M's real value is not only important for the investor to make better decisions but also for a more accurate overall view of 3M's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both 3M's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

3M Market Cap

3M Company is considered to be number one stock in market capitalization category among related companies. Market capitalization of Conglomerates industry is now estimated at about 2.13 Trillion. 3M holds roughly 80.74 Billion in market capitalization claiming about 4% of stocks in Conglomerates industry.
Capitalization  Workforce  Revenue  Valuation  Total debt

3M Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining 3M's current stock value. Our valuation model uses many indicators to compare 3M value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across 3M competition to find correlations between indicators driving 3M's intrinsic value. More Info.
3M Company is considered to be number one stock in last dividend paid category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about  3.95  of Price to Book per Last Dividend Paid. Price to Book Value is expected to hike to 8.19 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value 3M by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for 3M's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the 3M's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates 3M's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in 3M and how it compares across the competition.

About 3M Valuation

The equity valuation mechanism determines the current worth of 3M Company on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of 3M Company. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of 3M Company based exclusively on its fundamental and basic technical indicators. By analyzing 3M's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of 3M's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of 3M. We calculate exposure to 3M's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to 3M's related companies.
Fiscal Year End
December
Industry
Conglomerates
Concentration
Industrial Conglomerates
Full Time Employees
95 K
Service Category
Industrial Conglomerates
Employer Id Number
41-0417775
Last ReportedProjected for 2022
Gross Profit16.6 B17.5 B
Profit Margin 0.17  0.18 
3M Company operates as a diversified technology company worldwide. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. 3M operates under Conglomerates classification in the United States and is traded on New York Stock Exchange. It employs 95000 people.

3M Quarterly Enterprise Value

87.94 Billion

3M's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether 3M's value is low or high relative to the company's performance and growth projections. Determining the market value of 3M can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of 3M represents a small ownership stake in the entity. As a stockholder of 3M, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

3M Dividends Analysis For Valuation

The value of Payment of Dividends and Other Cash Distributions is expected to pull down to about (3.7 B). The value of Dividend Yield is estimated to pull down to 0.0327. 3M Earning Before Interest and Taxes EBIT is relatively stable at the moment as compared to the past year. The company's current value of Earning Before Interest and Taxes EBIT is estimated at 7.71 Billion. Price to Earnings Ratio is expected to hike to 20.68 this year, although the value of Earnings per Basic Share will most likely fall to 10.00.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-3.4 B-3.7 B
Dividend Yield 0.033  0.0327 
Dividends per Basic Common Share 5.92  5.58 
There are various types of dividends 3M can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of 3M shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from 3M Company directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When 3M pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of 3M by the value of the dividends paid out.

3M Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as 3M does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.80
Earnings Quarterly Growth-94.90%
Revenue Growth-2.80%
Payout Ratio82.96%
Enterprise Value To Ebitda11.14
Earnings Growth-94.70%
Enterprise Value To Revenue2.73

3M Current Valuation Indicators

Valuation refers to the process of determining the present value of 3M Company and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value 3M we look at many different elements of the entity such as 3M's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. 3M's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final 3M's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as 3M, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use 3M's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes 3M's worth.
Additionally, see Stocks Correlation. Note that the 3M Company information on this page should be used as a complementary analysis to other 3M's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Complementary Tools for 3M Stock analysis

When running 3M Company price analysis, check to measure 3M's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy 3M is operating at the current time. Most of 3M's value examination focuses on studying past and present price action to predict the probability of 3M's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move 3M's price. Additionally, you may evaluate how the addition of 3M to your portfolios can decrease your overall portfolio volatility.
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Is 3M's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of 3M. If investors know 3M will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about 3M listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.95
Market Capitalization
84.4 B
Quarterly Revenue Growth YOY
-0.028
Return On Assets
0.0893
Return On Equity
0.29
The market value of 3M Company is measured differently than its book value, which is the value of 3M that is recorded on the company's balance sheet. Investors also form their own opinion of 3M's value that differs from its market value or its book value, called intrinsic value, which is 3M's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because 3M's market value can be influenced by many factors that don't directly affect 3M's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between 3M's value and its price as these two are different measures arrived at by different means. Investors typically determine 3M value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 3M's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.