Solventum Corporation (SOLV) 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

+61.6%

$136.10

vs $84.24 price

Levered DCF

$94.22

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.11

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020
P/E	8.86×	23.85×	10.27×	10.27×	9.45×	12.12×
P/B	2.73×	3.87×	1.18×	1.18×	1.14×	0×
P/S	1.66×	1.39×	1.69×	1.7×	1.69×	1.89×
EV / EBITDA	7.04×	12.24×	9.84×	6.09×	5.57×	0×
Gross margin	53.5%	55.6%	57.3%	57.7%	60.2%	59.3%
Operating margin	26.2%	12.6%	20.6%	20.8%	23.0%	19.6%
Net margin	18.7%	5.8%	16.4%	16.5%	17.9%	15.6%
Current ratio	1.23×	1.2×	1.46×	1.7×	1.56×	0×
Debt / equity	1×	2.71×	0.71×	0.01×	0.01×	0×
Interest coverage	6.29×	2.82×	0×	0×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020
Return on equity	30.8%	16.2%	11.5%	11.4%	12.1%	0.0%
Return on invested capital	17.8%	6.8%	11.2%	10.9%	11.5%	0.0%
Return on assets	10.9%	3.3%	9.7%	9.9%	10.4%	0.0%
Free cash flow yield	-0.1%	7.0%	11.8%	10.3%	14.0%	12.7%
Earnings yield	11.3%	4.2%	9.7%	9.7%	10.6%	8.2%
Enterprise value	$18B	$18.7B	$21.9B	$13.8B	$13.8B	$0
Net debt / EBITDA	1.63×	4.75×	3.64×	0.01×	0.01×	0×
Cash conversion cycle (days)	81	89	98	108	108	0