Name: 3M Co. (NYSE:MMM) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

3M Co., current enterprise value calculation

Current share price (P)	$118.50
No. shares of common stock outstanding	552,742,915
US$ in millions
Common equity (market value)¹	65,500)
Add: Noncontrolling interest (per books)	71)
Total equity	65,571)
Add: Short-term borrowings and current portion of long-term debt (per books)	1,307)
Add: Current obligations of finance leases (per books)	7)
Add: Long-term debt, excluding current portion (per books)	16,056)
Add: Finance leases, net of current obligations (per books)	93)
Total equity and debt	83,034)
Less: Cash and cash equivalents	4,564)
Less: Marketable securities, current	201)
Enterprise value (EV)	78,269)

Based on: 10-K (reporting date: 2021-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 118.50 × 552,742,915

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3M Co., EV calculation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Share price^1, 2	$163.64	$177.10	$162.89	$199.84	$222.89
No. shares of common stock outstanding¹	571,100,000	579,100,000	575,600,000	575,800,000	595,500,000
US$ in millions
Common equity (market value)³	93,455)	102,559)	93,759)	115,068)	132,731)
Add: Noncontrolling interest (book value)	71)	64)	63)	52)	59)
Total equity	93,526)	102,623)	93,822)	115,120)	132,790)
Add: Short-term borrowings and current portion of long-term debt (book value)	1,307)	806)	2,795)	1,211)	1,853)
Add: Current obligations of finance leases (book value)	7)	22)	21)	17)	13)
Add: Long-term debt, excluding current portion (book value)	16,056)	17,989)	17,518)	13,411)	12,096)
Add: Finance leases, net of current obligations (book value)	93)	93)	111)	75)	60)
Total equity and debt	110,989)	121,533)	114,267)	129,834)	146,812)
Less: Cash and cash equivalents	4,564)	4,634)	2,353)	2,853)	3,053)
Less: Marketable securities, current	201)	404)	98)	380)	1,076)
Enterprise value (EV)	106,224)	116,495)	111,816)	126,601)	142,683)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of 3M Co. Annual Report.

³ 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 163.64 × 571,100,000

Between 2017 and 2021, a consistent downward trend is observed in the enterprise value (EV), which decreased from 142,683 million US$ to 106,224 million US$. This represents a total contraction of approximately 25.5% over the five-year period. While a temporary increase occurred in 2020, the overall trajectory indicates a significant reduction in the total market valuation of the firm's operations.

Market Value of Common Equity: The market capitalization exhibits a trajectory nearly identical to the enterprise value, declining from 132,731 million US$ in 2017 to 93,455 million US$ in 2021. The volatility is characterized by a sharp decline through 2019, a partial recovery in 2020, and a subsequent return to lower levels by the end of 2021.
Correlation Between Market and Book Value: A high degree of alignment is observed between the market value of common equity and total equity. These two metrics remained closely correlated throughout the analyzed period, indicating that the market valuation was heavily influenced by the accounting book value of the equity.
Aggregate Capital and Debt Trends: Total equity and debt followed a similar downward pattern, moving from 146,812 million US$ in 2017 to 110,989 million US$ in 2021. The spike observed in 2020 suggests a temporary expansion in the capital base or debt obligations, which mirrored the brief rise in overall enterprise value before the trend reversed in 2021.

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3M Co. (NYSE:MMM)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)