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MMM

3M Co. – Offices of Bank Holding Companies
3M Company is a diversified corporation manufacturing a wide range of products, including abrasives, adhesive tape and related products, and consumer-electronics components. It is headquartered in St. Paul, Minnesota. 3M apply science in collaborative ways to improve lives daily. With $32 billion in sales, 96,000 employees connect with customers all around the world.
Analysis Results
Intrinsic Value $282.09
Latest Price $110.50
Relative Value 61% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 2.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 5.64 5.35
2023 5.76 5.2
2024 5.89 5.04
2025 6.03 4.9
2026 6.16 4.76
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 185 billion. This corresponds to a present value of 135 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 25.2 billion. Adding in the terminal value gives a total present value of 161 billion.

There are presently 570.0 million outstanding shares, so the intrinsic value per share is 282.09.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 30,806,000,000
Current Cash 9,530,000,000
Current Liabilities 18,070,000,000
Current Debt 2,614,000,000
Non-Cash Working Capital (NCWC) 5,820,000,000
Change in NCWC 3,018,000,000
EBIT 14,758,000,000
Tax Provision 2,570,000,000
Depreciation and Amortization 3,830,000,000
Capital Expenditure -3,206,000,000
Unlevered Free Cash Flow 15,771,218,464
Current Assets 14,982,000,000
Current Cash 5,038,000,000
Current Liabilities 7,948,000,000
Current Debt 806,000,000
Non-Cash Working Capital (NCWC) 2,802,000,000
Change in NCWC -1,291,000,000
EBIT 6,767,000,000
Tax Provision 1,318,000,000
Depreciation and Amortization 1,911,000,000
Capital Expenditure -1,501,000,000
Unlevered Free Cash Flow 4,556,011,034
Current Assets 12,971,000,000
Current Cash 2,451,000,000
Current Liabilities 9,222,000,000
Current Debt 2,795,000,000
Non-Cash Working Capital (NCWC) 4,093,000,000
Change in NCWC -350,000,000
EBIT 6,060,000,000
Tax Provision 1,130,000,000
Depreciation and Amortization 1,593,000,000
Capital Expenditure -1,699,000,000
Unlevered Free Cash Flow 4,405,155,462
Current Assets 13,709,000,000
Current Cash 3,233,000,000
Current Liabilities 7,244,000,000
Current Debt 1,211,000,000
Non-Cash Working Capital (NCWC) 4,443,000,000
Change in NCWC 129,000,000
EBIT 6,660,000,000
Tax Provision 1,637,000,000
Depreciation and Amortization 1,488,000,000
Capital Expenditure -1,577,000,000
Unlevered Free Cash Flow 5,142,511,428
Current Assets 14,277,000,000
Current Cash 4,129,000,000
Current Liabilities 7,687,000,000
Current Debt 1,853,000,000
Non-Cash Working Capital (NCWC) 4,314,000,000
Change in NCWC 513,000,000
EBIT 7,234,000,000
Tax Provision 2,679,000,000
Depreciation and Amortization 1,544,000,000
Capital Expenditure -1,373,000,000
Unlevered Free Cash Flow 5,350,447,535
Current Assets 11,726,000,000
Current Cash 2,678,000,000
Current Liabilities 6,219,000,000
Current Debt 972,000,000
Non-Cash Working Capital (NCWC) 3,801,000,000
Change in NCWC -195,000,000
EBIT 7,223,000,000
Tax Provision 1,995,000,000
Depreciation and Amortization 1,474,000,000
Capital Expenditure -1,420,000,000
Unlevered Free Cash Flow 5,038,914,079
Current Assets 10,986,000,000
Current Cash 1,916,000,000
Current Liabilities 7,118,000,000
Current Debt 2,044,000,000
Non-Cash Working Capital (NCWC) 3,996,000,000
Change in NCWC 646,000,000
EBIT 6,946,000,000
Tax Provision 1,982,000,000
Depreciation and Amortization 1,435,000,000
Capital Expenditure -1,461,000,000
Unlevered Free Cash Flow 5,548,269,969
Current Assets 11,765,000,000
Current Cash 2,523,000,000
Current Liabilities 5,998,000,000
Current Debt 106,000,000
Non-Cash Working Capital (NCWC) 3,350,000,000
Change in NCWC -231,000,000
EBIT 7,135,000,000
Tax Provision 2,028,000,000
Depreciation and Amortization 1,408,000,000
Capital Expenditure -1,493,000,000
Unlevered Free Cash Flow 4,759,538,001
Current Assets 12,733,000,000
Current Cash 3,337,000,000
Current Liabilities 7,498,000,000
Current Debt 1,683,000,000
Non-Cash Working Capital (NCWC) 3,581,000,000
Change in NCWC -403,000,000
EBIT 6,666,000,000
Tax Provision 1,841,000,000
Depreciation and Amortization 1,371,000,000
Capital Expenditure -1,665,000,000
Unlevered Free Cash Flow 4,098,822,310
Current Assets 13,630,000,000
Current Cash 4,531,000,000
Current Liabilities 6,200,000,000
Current Debt 1,085,000,000
Non-Cash Working Capital (NCWC) 3,984,000,000
Change in NCWC 183,000,000
EBIT 6,483,000,000
Tax Provision 1,840,000,000
Depreciation and Amortization 1,288,000,000
Capital Expenditure -1,484,000,000
Unlevered Free Cash Flow 4,591,757,203

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