Latest Ratios: P/E Ratio 26.5x · EV/EBITDA 16.7x · ROE 75.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $83.0B | $86.3B | $71.3B | $50.6B | $56.9B | $86.9B | $85.1B | $86.3B | $95.9B | $120.6B | $92.4B |
| Enterprise Value | $90.7B | $94.0B | $79.4B | $61.6B | $70.1B | $100.7B | $100.2B | $105.2B | $107.7B | $131.5B | $101.7B |
| P/E Ratio → | 26.52 | 26.68 | 17.10 | — | 9.85 | 14.67 | 15.61 | 18.89 | 17.92 | 24.82 | 18.30 |
| P/S Ratio | 3.33 | 3.46 | 2.90 | 2.06 | 1.66 | 2.46 | 2.64 | 2.69 | 2.93 | 3.81 | 3.07 |
| P/B Ratio | 18.07 | 18.18 | 18.31 | 10.40 | 3.85 | 5.75 | 6.58 | 8.52 | 9.74 | 10.37 | 8.93 |
| P/FCF | 59.46 | 61.82 | 111.77 | 10.00 | 14.81 | 14.86 | 12.87 | 16.07 | 19.73 | 24.77 | 17.62 |
| P/OCF | 36.00 | 37.42 | 39.20 | 7.58 | 10.18 | 11.66 | 10.49 | 12.21 | 14.89 | 19.32 | 13.87 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.77 | 3.23 | 2.50 | 2.05 | 2.85 | 3.11 | 3.27 | 3.29 | 4.15 | 3.38 |
| EV / EBITDA | 16.67 | 17.28 | 12.89 | 11.25 | 11.87 | 10.66 | 11.30 | 12.28 | 11.63 | 15.00 | 11.97 |
| EV / EBIT | 19.88 | 18.90 | 13.23 | — | 10.18 | 13.14 | 13.64 | 17.13 | 14.88 | 17.23 | 14.00 |
| EV / FCF | — | 67.33 | 124.40 | 12.17 | 18.25 | 17.21 | 15.15 | 19.59 | 22.16 | 27.02 | 19.40 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 39.6% | 39.6% | 41.0% | 38.9% | 43.7% | 47.0% | 48.5% | 47.6% | 49.4% | 49.5% | 49.7% |
| Operating Margin | 18.3% | 18.3% | 20.1% | 16.4% | 11.9% | 21.3% | 21.6% | 21.7% | 23.7% | 22.8% | 23.3% |
| Net Profit Margin | 13.0% | 13.0% | 17.0% | -28.4% | 16.9% | 16.7% | 16.9% | 14.2% | 16.3% | 15.3% | 16.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 75.2% | 75.2% | 95.3% | -71.2% | 38.7% | 42.2% | 47.3% | 45.8% | 49.8% | 44.2% | 46.3% |
| ROA | 8.4% | 8.4% | 9.2% | -14.4% | 12.4% | 12.5% | 11.8% | 11.3% | 14.4% | 13.7% | 15.4% |
| ROIC | 28.1% | 28.1% | 26.6% | 13.8% | 10.7% | 19.8% | 18.3% | 20.6% | 26.3% | 25.7% | 26.2% |
| ROCE | 16.1% | 16.1% | 15.4% | 11.2% | 10.9% | 19.4% | 18.6% | 21.6% | 26.1% | 25.4% | 26.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.73 | 2.73 | 3.51 | 3.44 | 1.14 | 1.21 | 1.53 | 2.10 | 1.49 | 1.21 | 1.13 |
| Debt / EBITDA | 2.38 | 2.38 | 2.22 | 3.06 | 2.85 | 1.94 | 2.23 | 2.48 | 1.59 | 1.60 | 1.38 |
| Net Debt / Equity | — | 1.62 | 2.07 | 2.26 | 0.89 | 0.91 | 1.17 | 1.87 | 1.20 | 0.94 | 0.90 |
| Net Debt / EBITDA | 1.42 | 1.42 | 1.31 | 2.01 | 2.24 | 1.46 | 1.70 | 2.21 | 1.28 | 1.25 | 1.09 |
| Debt / FCF | — | 5.52 | 12.63 | 2.17 | 3.44 | 2.35 | 2.29 | 3.52 | 2.44 | 2.25 | 1.77 |
| Interest Coverage | 6.91 | 6.91 | 5.08 | -11.09 | 13.84 | 16.76 | 13.29 | 14.25 | 30.17 | 90.86 | 35.07 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.71 | 1.71 | 1.41 | 1.07 | 1.54 | 1.70 | 1.89 | 1.41 | 1.89 | 1.86 | 1.89 |
| Quick Ratio | 1.33 | 1.33 | 1.08 | 0.81 | 0.98 | 1.15 | 1.35 | 0.96 | 1.29 | 1.33 | 1.34 |
| Cash Ratio | 0.62 | 0.62 | 0.69 | 0.38 | 0.41 | 0.53 | 0.63 | 0.27 | 0.45 | 0.54 | 0.43 |
| Asset Turnover | — | 0.66 | 0.62 | 0.49 | 0.74 | 0.75 | 0.68 | 0.72 | 0.90 | 0.83 | 0.92 |
| Inventory Turnover | 4.12 | 4.12 | 3.92 | 3.81 | 3.59 | 3.76 | 3.91 | 4.07 | 3.80 | 3.97 | 4.47 |
| Days Sales Outstanding | — | 51.69 | 48.60 | 55.02 | 49.43 | 49.24 | 54.78 | 56.37 | 57.07 | 57.44 | 54.56 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 1.4% | 2.8% | 6.5% | 5.9% | 3.9% | 4.0% | 3.8% | 3.3% | 2.3% | 2.9% |
| Payout Ratio | 36.2% | 36.2% | 47.5% | — | 58.3% | 57.8% | 62.2% | 72.6% | 59.7% | 57.7% | 53.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 3.7% | 5.8% | — | 10.2% | 6.8% | 6.4% | 5.3% | 5.6% | 4.0% | 5.5% |
| FCF Yield | 1.7% | 1.6% | 0.9% | 10.0% | 6.8% | 6.7% | 7.8% | 6.2% | 5.1% | 4.0% | 5.7% |
| Buyback Yield | 5.8% | 5.6% | 2.5% | 0.1% | 2.6% | 2.5% | 0.4% | 1.6% | 5.1% | 1.7% | 4.1% |
| Total Shareholder Yield | 7.2% | 6.9% | 5.3% | 6.6% | 8.5% | 6.5% | 4.4% | 5.5% | 8.4% | 4.0% | 7.0% |
| Shares Outstanding | — | $539M | $552M | $554M | $568M | $585M | $582M | $585M | $602M | $613M | $619M |
Legal and environmental liabilities
Based on current market data, 3M's P/E ratio of 27.34 appears elevated relative to its historical norms, suggesting that investors are pricing in a significant recovery premium despite the persistent volatility in earnings and the ongoing drag from substantial legal and environmental settlement obligations.
The forward P/E of 18.86 implies that the market expects a stabilization in earnings, yet this valuation remains sensitive to the company's ability to execute on its post-spin-off strategy. Given the P/FCF of 61.28, the current share price appears to be trading at a significant disconnect from the firm's actual cash-generating capacity, warranting caution for value-oriented investors.
As reported in financial statements, 3M's ROIC has exhibited significant volatility, dropping from 24.1% in 2023Q4 to 8.5% in 2026Q1, which indicates that the company is struggling to maintain its historical ability to compound returns on invested capital amidst ongoing operational and legal headwinds.
The decline in ROIC suggests that the firm's core material science platform is facing diminishing returns, likely exacerbated by the costs associated with restructuring and legal remediation. Investors should monitor whether the recent leadership changes can restore capital efficiency or if the current trend reflects a permanent erosion of the company's competitive moat.
According to recent quarterly filings, 3M's cash conversion cycle has remained elevated, reaching 78 days in 2026Q1, which highlights persistent inefficiencies in managing inventory and receivables compared to the more streamlined operational profiles of its diversified industrial peers like Illinois Tool Works or Eaton Corporation.
The high DIO of 93 days suggests that the company is carrying significant inventory levels, which may be a defensive response to supply chain volatility or a sign of slowing demand for its industrial consumables. This inefficiency ties up critical liquidity that could otherwise be deployed toward debt reduction or essential R&D initiatives.
Based on the provided quarterly data, 3M's debt-to-equity ratio of 3.79 as of 2026Q1 indicates a highly leveraged capital structure that leaves the firm with limited room for error as it navigates the multi-year cash outflows required to satisfy its significant legal and environmental settlement liabilities.
The interest coverage ratio of 5.33, while currently manageable, remains vulnerable to any further contraction in operating income or unexpected spikes in financing costs. The reliance on debt to fund operations and shareholder returns in the current environment appears increasingly unsustainable without a meaningful improvement in core cash flow generation.
Investors frequently misapply the dividend yield as a proxy for financial health, yet at 1.3%, this metric obscures the reality that 3M's capital allocation is increasingly dictated by the necessity of funding legal settlements rather than the historical priority of returning excess cash to shareholders.
Relying on dividend yield ignores the underlying erosion of the balance sheet and the volatility of free cash flow, which are more critical indicators of the company's long-term viability. A more appropriate metric for this business model would be the cash payout ratio relative to normalized free cash flow, which would likely reveal a much tighter margin of safety than the headline yield suggests.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MMM stock.
3M Company's current P/E ratio is 26.5x. The historical average is 17.4x. This places it at the 93th percentile of its historical range.
3M Company's current EV/EBITDA is 16.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.4x.
3M Company's return on equity (ROE) is 75.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 33.4%.
Based on historical data, 3M Company is trading at a P/E of 26.5x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
3M Company's current dividend yield is 1.37% with a payout ratio of 36.2%.
3M Company has 39.6% gross margin and 18.3% operating margin. Operating margin between 10-20% is typical for established companies.
3M Company's Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.