MMM
3M Company
$152.44
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 2.8% above fair value
You pay
$152.44
Bear
$118.64
Fair
$148.31
Bull
$177.97
Bear
$118.64
-22.2%
$9.36 × 12x P/E
Fair
$148.31
-2.7%
$9.36 × 15x P/E
Bull
$177.97
+16.7%
$9.36 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
16.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $166.75 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $148.31 per share.
Warnings
The company's reported profits differ from official accounting profits by 56%. Check what costs are being left out of the adjusted number.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples