Stock Analysis on Net

3M Co. (NYSE:MMM)

Common Stock Valuation Ratios (Price Multiples)

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Current Valuation Ratios

3M Co., current price multiples

Microsoft Excel LibreOffice Calc
3M Co. Boeing Co. Caterpillar Inc. General Electric Co. Honeywell International Inc. Illinois Tool Works Inc. Lockheed Martin Corp. Raytheon Technologies Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $172.65
No. shares of common stock outstanding 576,252,803
Growth rate (g) 18.28%
 
Earnings per share (EPS) $9.34
Next year expected EPS $11.05
Operating profit per share $12.43
Sales per share $55.85
Book value per share (BVPS) $22.33
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 18.48 38.63 20.22 29.54 35.34 14.98 74.57 57.09
Price to next year expected earnings 15.62 38.40 20.96 26.56 27.45 6.36 74.85 53.16
Price-earnings-growth (PEG) 1.01 63.60 2.63 1.23 0.11 7.73
Price to operating profit (P/OP) 13.89 25.44 26.36 24.79 25.86 11.84 48.68 32.49
Price to sales (P/S) 3.09 2.08 2.97 1.45 4.33 5.93 1.57 2.31 2.41 2.58
Price to book value (P/BV) 7.73 7.55 2.97 8.05 23.43 17.02 1.81 6.17 6.94

Based on: 10-K (reporting date: 2020-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

3M Co., historical price multiples

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Price to earnings (P/E) 19.05 20.52 21.51 27.32 21.04
Price to operating profit (P/OP) 14.32 15.19 15.97 16.97 14.71
Price to sales (P/S) 3.19 2.92 3.51 4.19 3.53
Price to book value (P/BV) 7.97 9.32 11.75 11.48 10.32

Based on: 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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. 3M Co. P/E ratio decreased from 2018 to 2019 and from 2019 to 2020.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. 3M Co. P/OP ratio decreased from 2018 to 2019 and from 2019 to 2020.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. 3M Co. P/S ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. 3M Co. P/BV ratio decreased from 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

3M Co., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 579,100,000 575,600,000 575,800,000 595,500,000 596,200,000
Selected Financial Data (US$)
Net income attributable to 3M (in millions) 5,384  4,570  5,349  4,858  5,050 
Earnings per share (EPS)2 9.30 7.94 9.29 8.16 8.47
Share price1, 3 177.10 162.89 199.84 222.89 178.18
Valuation Ratio
P/E ratio4 19.05 20.52 21.51 27.32 21.04
Benchmarks
P/E Ratio, Competitors5
Boeing Co. 21.87 24.68 20.50
Caterpillar Inc. 36.80 12.36 12.42 126.80
General Electric Co. 19.67 32.22
Honeywell International Inc. 29.63 20.97 16.02 67.20 19.29
Illinois Tool Works Inc. 30.18 23.76 18.46 33.07 21.80
Lockheed Martin Corp. 13.44 19.87 16.88 48.70 14.14
Raytheon Technologies Corp. 24.41 19.74 21.97 17.55
P/E Ratio, Sector
Capital Goods 70.10 35.96 45.64 52.68 23.51
P/E Ratio, Industry
Industrials 50.89 30.51 30.35 26.39 23.61

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income attributable to 3M ÷ No. shares of common stock outstanding
= 5,384,000,000 ÷ 579,100,000 = 9.30

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 177.10 ÷ 9.30 = 19.05

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. 3M Co. P/E ratio decreased from 2018 to 2019 and from 2019 to 2020.

Price to Operating Profit (P/OP)

3M Co., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 579,100,000 575,600,000 575,800,000 595,500,000 596,200,000
Selected Financial Data (US$)
Operating income (in millions) 7,161  6,174  7,207  7,820  7,223 
Operating profit per share2 12.37 10.73 12.52 13.13 12.12
Share price1, 3 177.10 162.89 199.84 222.89 178.18
Valuation Ratio
P/OP ratio4 14.32 15.19 15.97 16.97 14.71
Benchmarks
P/OP Ratio, Competitors5
Boeing Co. 19.08 19.69 17.20
Caterpillar Inc. 24.23 9.08 9.20 21.70 116.61
General Electric Co. 25.64 9.22 8.57 12.27 19.05
Honeywell International Inc. 24.86 18.81 16.16 15.55 13.88
Illinois Tool Works Inc. 22.08 17.61 13.20 15.97 14.48
Lockheed Martin Corp. 10.63 14.49 11.62 16.47 13.51
Raytheon Technologies Corp. 15.07 12.16 11.53 10.86
P/OP Ratio, Sector
Capital Goods 45.76 17.47 13.30 15.88 16.30
P/OP Ratio, Industry
Industrials 28.96 15.86 13.21 14.59 15.43

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 7,161,000,000 ÷ 579,100,000 = 12.37

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 177.10 ÷ 12.37 = 14.32

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. 3M Co. P/OP ratio decreased from 2018 to 2019 and from 2019 to 2020.

Price to Sales (P/S)

3M Co., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 579,100,000 575,600,000 575,800,000 595,500,000 596,200,000
Selected Financial Data (US$)
Net sales (in millions) 32,184  32,136  32,765  31,657  30,109 
Sales per share2 55.58 55.83 56.90 53.16 50.50
Share price1, 3 177.10 162.89 199.84 222.89 178.18
Valuation Ratio
P/S ratio4 3.19 2.92 3.51 4.19 3.53
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 1.96 2.34 2.26 2.17 1.06
Caterpillar Inc. 2.83 1.48 1.47 2.24 1.62
General Electric Co. 1.41 1.18 0.82 1.11 2.39
Honeywell International Inc. 4.34 3.51 2.59 2.74 2.36
Illinois Tool Works Inc. 5.06 4.25 3.20 3.90 3.26
Lockheed Martin Corp. 1.40 2.07 1.58 1.91 1.59
Raytheon Technologies Corp. 1.95 1.75 1.56 1.67 1.55
P/S Ratio, Sector
Capital Goods 2.27 2.07 1.80 2.06 1.94
P/S Ratio, Industry
Industrials 2.30 2.08 1.89 2.05 1.96

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 32,184,000,000 ÷ 579,100,000 = 55.58

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 177.10 ÷ 55.58 = 3.19

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. 3M Co. P/S ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Price to Book Value (P/BV)

3M Co., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 579,100,000 575,600,000 575,800,000 595,500,000 596,200,000
Selected Financial Data (US$)
Total 3M Company shareholders’ equity (in millions) 12,867  10,063  9,796  11,563  10,298 
Book value per share (BVPS)2 22.22 17.48 17.01 19.42 17.27
Share price1, 3 177.10 162.89 199.84 222.89 178.18
Valuation Ratio
P/BV ratio4 7.97 9.32 11.75 11.48 10.32
Benchmarks
P/BV Ratio, Competitors5
Boeing Co. 674.83 569.92 122.80
Caterpillar Inc. 7.20 5.16 5.44 6.98 4.42
General Electric Co. 2.89 3.66 3.00 1.96 3.47
Honeywell International Inc. 8.07 6.97 5.96 6.44 4.79
Illinois Tool Works Inc. 20.01 19.80 14.54 12.17 10.43
Lockheed Martin Corp. 15.27 39.60 61.11 49.61
Raytheon Technologies Corp. 1.53 3.24 2.71 3.38 3.22
P/BV Ratio, Sector
Capital Goods 5.80 8.12 7.37 6.55 5.42
P/BV Ratio, Industry
Industrials 6.18 7.23 6.59 5.88 5.38

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Total 3M Company shareholders’ equity ÷ No. shares of common stock outstanding
= 12,867,000,000 ÷ 579,100,000 = 22.22

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 177.10 ÷ 22.22 = 7.97

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. 3M Co. P/BV ratio decreased from 2018 to 2019 and from 2019 to 2020.