Current Price
$158.32
PE Ratio (TTM)
30.1x
Intrinsic Value
$163.97
+3.4% margin of safety
COMPETITIVE MOAT
↑Diversified Business Segments
3M's broad portfolio across healthcare, consumer, safety, and industrial provides resilience. This diversification mitigates risks from downturns in any single market.
↑Strong Brand Recognition
Well-established brands like Post-it and Scotch offer significant customer loyalty. This brand equity allows for premium pricing and sustained demand.
↑Intellectual Property Portfolio
A vast patent library and ongoing R&D fuel innovation and create barriers to entry. This technological advantage protects market share in specialized areas.
INVESTMENT RISKS
↓Consumer Segment Weakness
Softness in the consumer unit due to muted spending and housing market challenges impacts revenue. Innovation efforts are crucial to offset this trend.
↓Litigation and Environmental Liabilities
Ongoing legal battles and environmental remediation costs pose significant financial and reputational risks. These can lead to substantial settlements and fines.
↓Competitive Pressures
While diversified, 3M faces intense competition across its various segments. Competitors can erode market share through lower pricing or superior innovation.
Base case
MMM base case PE valuation
A base case PE valuation for MMM estimates a fair value of about $163.97 per share, against a current price of $158.32. The model assumes 7.3% annual earnings growth, a 30x target PE multiple, and a 10% discount rate.
Intrinsic Value
$163.97
Margin of safety
+3.4%
Expected annual return
+0.7%
Base case assumptions: 7.3% annual earnings growth, 30x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MMM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for 3M Company respond.
Open PE Calculator for MMMCompany Overview
3M Company operates as a global technology conglomerate with diverse interests. Its extensive operations are strategically divided into four primary business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The Safety and Industrial division supplies a broad array of products, including specialized abrasives and finishing tools for metalworking, automotive body repair kits, fastening systems for personal hygiene items, various masking and packaging materials, electrical components for construction, maintenance, and power distribution, strong structural adhesives and tapes, comprehensive personal protective equipment for respiratory, auditory, visual, and fall protection, and mineral granules for roofing shingles. Within the Transportation and Electronics sector, offerings encompass advanced ceramic solutions, specialized attachment tapes and films, sophisticated sound and temperature management systems for vehicles, high-quality large-format graphic films for advertising and fleet branding, optical films, electronic assembly solutions, robust packaging and interconnection technologies, and reflective materials crucial for highway and vehicle safety. The Health Care segment provides essential solutions such as food safety indicators, software for medical procedure coding and reimbursement, a wide range of products for skin and wound care, infection prevention, dental and orthodontic supplies, and advanced filtration and purification systems. Finally, the Consumer unit delivers an assortment of household and personal products, including bandages, braces, support devices, and personal respirators; various home cleaning supplies; retail-grade abrasives, paint accessories, DIY car care products, picture hanging solutions, and consumer-focused air quality improvements; along with a selection of stationery items. The company distributes its extensive product portfolio through both online platforms and a comprehensive traditional network, leveraging wholesalers, retailers, jobbers, distributors, and authorized dealers. This enterprise was founded in 1902 and maintains its corporate headquarters in St. Paul, Minnesota.
Financial Metrics — MMM PE Stock Valuation Data
PE Ratio (TTM)
30.1x
PEG Ratio
n/m
Earnings Yield
3.33%
ROE (TTM)
66.0%
Revenue/Share (TTM)
$47.30
Dividend Yield
1.91%
Debt/Equity
3.85x
Frequently Asked Questions
What is the PE ratio of MMM?
The trailing twelve-month PE ratio of MMM reflects how much investors pay per dollar of 3M Company's earnings. This metric is most useful when compared to Conglomerates peers and the company's own historical range.
Is MMM overvalued based on PE ratio?
MMM's PE of 30.1x combined with a PEG ratio of -0.88 provides a growth-adjusted perspective. MMM has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Conglomerates, a DCF analysis may be more appropriate.
How do I value MMM stock using PE ratio?
To value 3M Company using PE: (1) Compare the current PE (30.1x) against the Conglomerates median to assess relative pricing, (2) check the PEG ratio (-0.88) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MMM?
MMM's PEG ratio is -0.88, calculated by dividing the PE ratio (30.1x) by the expected earnings growth rate. Because MMM has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MMM stock valuation?
PE ratio gives a quick relative read — how MMM is priced versus Conglomerates peers. DCF provides an absolute value based on projected free cash flows. For MMM, with a strong ROE of 66.0%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MMM DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value MMM with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.