3M Valuation
| MMM Stock | EUR 86.78 0.27 0.31% |
At this time, the firm appears to be overvalued. 3M Company owns a latest Real Value of €74.08 per share. The recent price of the firm is €86.78. Our model approximates the value of 3M Company from evaluating the firm fundamentals such as Net Income of 5.78 B, price to book of 4.97 X, and Total Debt of 14 B as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors favor taking in undervalued equities and trading overvalued equities since, sooner or later, asset prices and their ongoing real values will grow together.
Overvalued
Today
Please note that 3M's price fluctuation is very steady at this time. Calculation of the real value of 3M Company is based on 3 months time horizon. Increasing 3M's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for 3M Company is useful when determining the fair value of the 3M stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of 3M. Since 3M is currently traded on the exchange, buyers and sellers on that exchange determine the market value of 3M Stock. However, 3M's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 86.78 | Real 74.08 | Hype 86.78 | Naive 91.88 |
The real value of 3M Stock, also known as its intrinsic value, is the underlying worth of 3M Company Company, which is reflected in its stock price. It is based on 3M's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of 3M's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence 3M's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of 3M Company helps investors to forecast how 3M stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of 3M more accurately as focusing exclusively on 3M's fundamentals will not take into account other important factors: 3M Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining 3M's current stock value. Our valuation model uses many indicators to compare 3M value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across 3M competition to find correlations between indicators driving 3M's intrinsic value. More Info.3M Company is considered to be number one stock in price to book category among related companies. It is regarded third in price to sales category among related companies fabricating about 0.42 of Price To Sales per Price To Book. The ratio of Price To Book to Price To Sales for 3M Company is roughly 2.38 . Comparative valuation analysis is a catch-all model that can be used if you cannot value 3M by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for 3M's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the 3M's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates 3M's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in 3M and how it compares across the competition.
About 3M Valuation
The stock valuation mechanism determines the current worth of 3M Company on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of 3M Company. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of 3M Company based exclusively on its fundamental and basic technical indicators. By analyzing 3M's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of 3M's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of 3M. We calculate exposure to 3M's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to 3M's related companies.8 Steps to conduct 3M's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates 3M's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct 3M's valuation analysis, follow these 8 steps:- Gather financial information: Obtain 3M's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine 3M's revenue streams: Identify 3M's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research 3M's industry and market trends, including the size of the market, growth rate, and competition.
- Establish 3M's growth potential: Evaluate 3M's management, business model, and growth potential.
- Determine 3M's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate 3M's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in 3M Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for 3M Stock analysis
When running 3M's price analysis, check to measure 3M's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy 3M is operating at the current time. Most of 3M's value examination focuses on studying past and present price action to predict the probability of 3M's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 3M's price. Additionally, you may evaluate how the addition of 3M to your portfolios can decrease your overall portfolio volatility.
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