Price to Earnings (P/E)
since 2005
Calculation
3M Co., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to 3M1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 9, 2022 | 15.78 | = | 163.64 | ÷ | 10.37 | 10.37 | = | 5,921 | ÷ | 571,100,000 | |
| Feb 4, 2021 | 19.05 | = | 177.10 | ÷ | 9.30 | 9.30 | = | 5,384 | ÷ | 579,100,000 | |
| Feb 6, 2020 | 20.52 | = | 162.89 | ÷ | 7.94 | 7.94 | = | 4,570 | ÷ | 575,600,000 | |
| Feb 7, 2019 | 21.51 | = | 199.84 | ÷ | 9.29 | 9.29 | = | 5,349 | ÷ | 575,800,000 | |
| Feb 8, 2018 | 27.32 | = | 222.89 | ÷ | 8.16 | 8.16 | = | 4,858 | ÷ | 595,500,000 | |
| Feb 9, 2017 | 21.04 | = | 178.18 | ÷ | 8.47 | 8.47 | = | 5,050 | ÷ | 596,200,000 | |
| Feb 11, 2016 | 18.86 | = | 150.67 | ÷ | 7.99 | 7.99 | = | 4,833 | ÷ | 605,038,186 | |
| Feb 12, 2015 | 21.25 | = | 165.91 | ÷ | 7.81 | 7.81 | = | 4,956 | ÷ | 634,749,706 | |
| Feb 13, 2014 | 18.51 | = | 130.14 | ÷ | 7.03 | 7.03 | = | 4,659 | ÷ | 662,692,234 | |
| Feb 14, 2013 | 15.96 | = | 102.78 | ÷ | 6.44 | 6.44 | = | 4,444 | ÷ | 689,990,255 | |
| Feb 16, 2012 | 14.21 | = | 87.65 | ÷ | 6.17 | 6.17 | = | 4,283 | ÷ | 694,543,763 | |
| Feb 16, 2011 | 16.09 | = | 92.33 | ÷ | 5.74 | 5.74 | = | 4,085 | ÷ | 711,805,978 | |
| Feb 16, 2010 | 17.94 | = | 80.47 | ÷ | 4.49 | 4.49 | = | 3,193 | ÷ | 711,733,377 | |
| Feb 17, 2009 | 9.51 | = | 47.42 | ÷ | 4.99 | 4.99 | = | 3,460 | ÷ | 693,791,556 | |
| Feb 15, 2008 | 13.81 | = | 79.95 | ÷ | 5.79 | 5.79 | = | 4,096 | ÷ | 707,662,632 | |
| Feb 26, 2007 | 14.51 | = | 76.12 | ÷ | 5.25 | 5.25 | = | 3,851 | ÷ | 733,885,504 | |
| Feb 21, 2006 | 17.28 | = | 73.20 | ÷ | 4.24 | 4.24 | = | 3,199 | ÷ | 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.
The financial trajectory from 2006 to 2022 is characterized by a steady increase in fundamental earnings, contrasted by significant volatility in market valuation and share price. While earnings per share exhibited a long-term upward trend, the price-to-earnings ratio fluctuated, reflecting changing market sentiment and external economic pressures.
- Earnings Per Share (EPS) Trends
- A consistent growth pattern is observed in EPS, rising from 4.24 US$ in 2006 to 10.37 US$ by 2022. This represents a sustained increase in profitability over the sixteen-year period, with only minor deviations occurring around 2010 and 2020. The growth in earnings provided a stable foundation, even during periods of share price volatility.
- Price-to-Earnings (P/E) Ratio Cycles
- The P/E ratio moved through three distinct phases. An initial contraction occurred between 2006 and 2009, reaching a period low of 9.51. This was followed by a valuation expansion phase from 2010 to 2018, during which the ratio peaked at 27.32. The final phase, from 2019 to 2022, shows a trend of multiple compression, with the ratio declining to 15.78.
- Share Price and Valuation Correlation
- The share price exhibited significant fluctuations that did not always align linearly with earnings. A notable divergence occurred in 2009, where the share price fell to 47.42 US$ despite EPS remaining relatively strong at 4.99 US$, leading to the lowest observed P/E ratio. Conversely, the valuation peak in 2018 coincided with the highest share price of 222.89 US$, indicating a period of maximum market optimism regardless of the EPS growth rate.
- Long-term Valuation Analysis
- By 2022, the P/E ratio of 15.78 suggests a return to historical norms observed in the 2007-2013 period. Although the company achieved its highest EPS in 2022, the market valuation shifted toward a more conservative multiple compared to the peaks seen between 2015 and 2018.
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Comparison to Competitors
3M Co., P/E, 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 | 15.78 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Feb 4, 2021 | 19.05 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
| Feb 6, 2020 | 20.52 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Feb 7, 2019 | 21.51 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Feb 8, 2018 | 27.32 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Feb 9, 2017 | 21.04 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Feb 11, 2016 | 18.86 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Feb 12, 2015 | 21.25 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Feb 13, 2014 | 18.51 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Feb 14, 2013 | 15.96 | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Feb 16, 2012 | 14.21 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Feb 16, 2011 | 16.09 | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Feb 16, 2010 | 17.94 | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Feb 17, 2009 | 9.51 | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Feb 15, 2008 | 13.81 | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Feb 26, 2007 | 14.51 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Feb 21, 2006 | 17.28 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
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/E, long-term trends, comparison to sector (capital goods)
| 3M Co. | Capital Goods | |
|---|---|---|
| Feb 9, 2022 | 15.78 | 57.31 |
| Feb 4, 2021 | 19.05 | 123.55 |
| Feb 6, 2020 | 20.52 | 39.03 |
| Feb 7, 2019 | 21.51 | 56.00 |
| Feb 8, 2018 | 27.32 | 55.16 |
| Feb 9, 2017 | 21.04 | 23.62 |
| Feb 11, 2016 | 18.86 | 33.10 |
| Feb 12, 2015 | 21.25 | 17.47 |
| Feb 13, 2014 | 18.51 | 18.85 |
| Feb 14, 2013 | 15.96 | 15.74 |
| Feb 16, 2012 | 14.21 | 15.20 |
| Feb 16, 2011 | 16.09 | 18.46 |
| Feb 16, 2010 | 17.94 | 17.22 |
| Feb 17, 2009 | 9.51 | 7.48 |
| Feb 15, 2008 | 13.81 | 15.28 |
| Feb 26, 2007 | 14.51 | 17.63 |
| Feb 21, 2006 | 17.28 | 20.11 |
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/E, long-term trends, comparison to industry (industrials)
| 3M Co. | Industrials | |
|---|---|---|
| Feb 9, 2022 | 15.78 | 35.59 |
| Feb 4, 2021 | 19.05 | — |
| Feb 6, 2020 | 20.52 | 43.95 |
| Feb 7, 2019 | 21.51 | 33.70 |
| Feb 8, 2018 | 27.32 | 29.83 |
| Feb 9, 2017 | 21.04 | 22.92 |
| Feb 11, 2016 | 18.86 | 22.89 |
| Feb 12, 2015 | 21.25 | 18.79 |
| Feb 13, 2014 | 18.51 | 19.13 |
| Feb 14, 2013 | 15.96 | 17.77 |
| Feb 16, 2012 | 14.21 | 15.75 |
| Feb 16, 2011 | 16.09 | 18.72 |
| Feb 16, 2010 | 17.94 | 19.17 |
| Feb 17, 2009 | 9.51 | 9.73 |
| Feb 15, 2008 | 13.81 | 16.93 |
| Feb 26, 2007 | 14.51 | 11.65 |
| Feb 21, 2006 | 17.28 | 50.62 |
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).