Conglomerates · NYSE
Current Price
$143.87
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on 3M Company with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
3M Company operates as a diversified technology company worldwide. It operates through four segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. The Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles. The Transportation and Electronics segment provides ceramic solutions; attachment tapes, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; and reflective signage for highway, and vehicle safety. The Healthcare segment offers food safety indicator solutions; health care procedure coding and reimbursement software; skin, wound care, and infection prevention products and solutions; dentistry and orthodontia solutions; and filtration and purification systems. The Consumer segment provides consumer bandages, braces, supports and consumer respirators; cleaning products for the home; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. The company was founded in 1902 and is based in St. Paul, Minnesota.
ROIC (TTM)
13.0%
ROE (TTM)
66.0%
FCF Yield
2.75%
Based on trailing twelve-month data, MMM shows a free cash flow per share of N/A and a ROIC of 13.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.75% are important context metrics when evaluating MMM's stock valuation relative to peers.
The intrinsic value of MMM depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether MMM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $143.87. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on 3M Company: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Conglomerates industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MMM's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For 3M Company, this means projecting how much free cash flow the Conglomerates will produce over the next 5-10 years, then discounting those amounts to today's dollars. MMM's ROIC of 13.0% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MMM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
