3M Company (MMM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-80.8%

$34.50

vs $179.38 price

Levered DCF

$55.72

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.19

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	26.51×	17.03×	-7.24×	9.82×	14.52×	15.5×	18.62×	17.53×
P/B	18.19×	18.51×	10.53×	3.85×	5.71×	6.56×	8.46×	9.57×
P/S	3.43×	2.89×	2.06×	1.66×	2.43×	2.62×	2.65×	2.86×
EV / EBITDA	14.85×	10.96×	-6.92×	8.02×	10.41×	10.75×	13.45×	12.1×
Gross margin	39.6%	41.0%	38.9%	43.7%	47.0%	48.5%	47.6%	49.4%
Operating margin	18.3%	20.1%	16.4%	11.9%	21.3%	21.6%	21.7%	23.7%
Net margin	13.0%	17.0%	-28.4%	16.9%	16.7%	16.9%	14.2%	16.3%
Current ratio	1.71×	1.41×	1.07×	1.54×	1.7×	1.89×	1.41×	1.89×
Debt / equity	2.75×	3.56×	3.48×	1.14×	1.22×	1.54×	2.11×	1.5×
Interest coverage	6.34×	4.17×	4.34×	8.18×	16.47×	12.58×	16.18×	32.39×
Dividend yield	1.4%	2.8%	6.5%	5.9%	4.0%	4.0%	3.9%	3.4%
Payout ratio	36.2%	47.5%	-47.3%	58.3%	57.8%	62.2%	72.6%	59.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	69.1%	108.6%	-145.5%	39.2%	39.4%	42.3%	45.4%	54.6%
Return on invested capital	11.5%	13.4%	7.8%	9.4%	15.6%	13.8%	14.5%	19.5%
Return on assets	8.6%	10.5%	-13.8%	12.4%	12.6%	11.5%	10.2%	14.7%
Free cash flow yield	1.6%	0.9%	10.0%	6.8%	6.8%	7.8%	6.3%	5.2%
Earnings yield	3.8%	5.9%	-13.8%	10.2%	6.9%	6.5%	5.4%	5.7%
Enterprise value	$93.2B	$79.2B	$61.6B	$69.9B	$99.7B	$99.5B	$104B	$105.6B
Net debt / EBITDA	1.23×	1.12×	-1.24×	1.51×	1.44×	1.63×	2.45×	1.36×
Cash conversion cycle (days)	75	75	83	91	88	92	98	103