Price to Book Value (P/BV)
since 2005
Calculation
3M Co., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total 3M Company shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 9, 2022 | 6.21 | = | 163.64 | ÷ | 26.35 | 26.35 | = | 15,046 | ÷ | 571,100,000 | |
| Feb 4, 2021 | 7.97 | = | 177.10 | ÷ | 22.22 | 22.22 | = | 12,867 | ÷ | 579,100,000 | |
| Feb 6, 2020 | 9.32 | = | 162.89 | ÷ | 17.48 | 17.48 | = | 10,063 | ÷ | 575,600,000 | |
| Feb 7, 2019 | 11.75 | = | 199.84 | ÷ | 17.01 | 17.01 | = | 9,796 | ÷ | 575,800,000 | |
| Feb 8, 2018 | 11.48 | = | 222.89 | ÷ | 19.42 | 19.42 | = | 11,563 | ÷ | 595,500,000 | |
| Feb 9, 2017 | 10.32 | = | 178.18 | ÷ | 17.27 | 17.27 | = | 10,298 | ÷ | 596,200,000 | |
| Feb 11, 2016 | 7.79 | = | 150.67 | ÷ | 19.35 | 19.35 | = | 11,708 | ÷ | 605,038,186 | |
| Feb 12, 2015 | 8.03 | = | 165.91 | ÷ | 20.65 | 20.65 | = | 13,109 | ÷ | 634,749,706 | |
| Feb 13, 2014 | 4.93 | = | 130.14 | ÷ | 26.41 | 26.41 | = | 17,502 | ÷ | 662,692,234 | |
| Feb 14, 2013 | 4.04 | = | 102.78 | ÷ | 25.47 | 25.47 | = | 17,575 | ÷ | 689,990,255 | |
| Feb 16, 2012 | 3.95 | = | 87.65 | ÷ | 22.20 | 22.20 | = | 15,420 | ÷ | 694,543,763 | |
| Feb 16, 2011 | 4.20 | = | 92.33 | ÷ | 22.00 | 22.00 | = | 15,663 | ÷ | 711,805,978 | |
| Feb 16, 2010 | 4.49 | = | 80.47 | ÷ | 17.93 | 17.93 | = | 12,764 | ÷ | 711,733,377 | |
| Feb 17, 2009 | 3.33 | = | 47.42 | ÷ | 14.24 | 14.24 | = | 9,879 | ÷ | 693,791,556 | |
| Feb 15, 2008 | 4.82 | = | 79.95 | ÷ | 16.60 | 16.60 | = | 11,747 | ÷ | 707,662,632 | |
| Feb 26, 2007 | 5.61 | = | 76.12 | ÷ | 13.57 | 13.57 | = | 9,959 | ÷ | 733,885,504 | |
| Feb 21, 2006 | 5.47 | = | 73.20 | ÷ | 13.38 | 13.38 | = | 10,100 | ÷ | 754,988,840 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of 3M Co. Annual Report.
- Share Price Trends
- The share price exhibited considerable volatility over the analyzed period. Beginning at $73.20 in early 2006, it experienced a significant decline in early 2009, dropping to $47.42 during the global financial downturn. Following this trough, the share price demonstrated a consistent upward trajectory, peaking at $222.89 in early 2018. After this peak, the price showed a notable correction, falling to around $163.64 by early 2022. This pattern suggests sensitivity to macroeconomic conditions and market cycles, with recovery and growth phases following market stress.
- Book Value Per Share (BVPS) Dynamics
- BVPS showed a generally increasing trend with some fluctuations. From $13.38 in early 2006, it rose to a high point of $26.41 by early 2014, indicating organic growth in net assets per share. Thereafter, it dipped to a low near $17.27 by early 2017 before rising again to approximately $26.35 in early 2022. This variability may reflect various factors including business performance, retained earnings, and asset revaluation or impairment events. The overall upward trend in BVPS reflects a strengthening of the company's net equity base over the long term.
- Price-to-Book Value (P/BV) Ratio Analysis
- The P/BV ratio showcased pronounced fluctuations, closely linked to movements in share price relative to book value changes. The ratio declined sharply from a high of around 5.47 in early 2006 to its lowest point near 3.33 in early 2009, consistent with the drop in share price during the economic downturn. Subsequently, the P/BV ratio surged, reaching an extreme high above 11.70 around early 2019, reflecting strong market optimism or potential overvaluation, as the share price rose faster than book value. The ratio decreased thereafter to approximately 6.21 by early 2022, signaling a market correction or stabilization relative to book value.
- Overall Insights
- The analysis reveals that share price movements were more volatile compared to the underlying book value per share, with market valuations expanding and contracting significantly. The periods of high P/BV ratios may indicate investor confidence and growth expectations, whereas sharp declines align with economic downturns or market corrections. The steady growth in book value per share suggests sustained value creation despite market fluctuations. The reconciliation of market price with intrinsic value, as represented by BVPS, indicates phases of potential overvaluation as well as corrections to moderate valuation levels over time.
Comparison to Competitors
3M Co., P/BV, long-term trends, comparison to competitors
| 3M Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 9, 2022 | 6.21 | — | 6.62 | 3.63 | 2.64 | 6.91 | 9.62 | 1.95 |
| Feb 4, 2021 | 7.97 | — | 7.20 | 3.54 | 2.89 | 8.07 | 15.27 | 1.53 |
| Feb 6, 2020 | 9.32 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Feb 7, 2019 | 11.75 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Feb 8, 2018 | 11.48 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Feb 9, 2017 | 10.32 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Feb 11, 2016 | 7.79 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Feb 12, 2015 | 8.03 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Feb 13, 2014 | 4.93 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Feb 14, 2013 | 4.04 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Feb 16, 2012 | 3.95 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Feb 16, 2011 | 4.20 | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Feb 16, 2010 | 4.49 | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Feb 17, 2009 | 3.33 | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Feb 15, 2008 | 4.82 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Feb 26, 2007 | 5.61 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Feb 21, 2006 | 5.47 | 5.26 | 5.81 | 2.73 | 3.15 | 3.05 | 4.05 | 3.39 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
3M Co., P/BV, long-term trends, comparison to sector (capital goods)
| 3M Co. | Capital Goods | |
|---|---|---|
| Feb 9, 2022 | 6.21 | 4.77 |
| Feb 4, 2021 | 7.97 | 5.05 |
| Feb 6, 2020 | 9.32 | 6.91 |
| Feb 7, 2019 | 11.75 | 6.11 |
| Feb 8, 2018 | 11.48 | 5.42 |
| Feb 9, 2017 | 10.32 | 4.64 |
| Feb 11, 2016 | 7.79 | 3.45 |
| Feb 12, 2015 | 8.03 | 3.17 |
| Feb 13, 2014 | 4.93 | 2.85 |
| Feb 14, 2013 | 4.04 | 2.77 |
| Feb 16, 2012 | 3.95 | 2.89 |
| Feb 16, 2011 | 4.20 | 2.90 |
| Feb 16, 2010 | 4.49 | 2.29 |
| Feb 17, 2009 | 3.33 | 1.86 |
| Feb 15, 2008 | 4.82 | 3.46 |
| Feb 26, 2007 | 5.61 | 3.91 |
| Feb 21, 2006 | 5.47 | 3.47 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
3M Co., P/BV, long-term trends, comparison to industry (industrials)
| 3M Co. | Industrials | |
|---|---|---|
| Feb 9, 2022 | 6.21 | 5.44 |
| Feb 4, 2021 | 7.97 | 5.89 |
| Feb 6, 2020 | 9.32 | 6.28 |
| Feb 7, 2019 | 11.75 | 5.96 |
| Feb 8, 2018 | 11.48 | 5.37 |
| Feb 9, 2017 | 10.32 | 4.89 |
| Feb 11, 2016 | 7.79 | 3.68 |
| Feb 12, 2015 | 8.03 | 3.70 |
| Feb 13, 2014 | 4.93 | 3.14 |
| Feb 14, 2013 | 4.04 | 3.06 |
| Feb 16, 2012 | 3.95 | 3.09 |
| Feb 16, 2011 | 4.20 | 3.05 |
| Feb 16, 2010 | 4.49 | 2.43 |
| Feb 17, 2009 | 3.33 | 2.01 |
| Feb 15, 2008 | 4.82 | 3.45 |
| Feb 26, 2007 | 5.61 | 3.75 |
| Feb 21, 2006 | 5.47 | 3.95 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).