Minnesota Mining & Manufacturing (3M)

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Morningstar Barbara Noverini barbara.noverini@morningstar.com
Langenberg, LLC Brian K. Langenberg brian@langenberg-llc.com
RBC Capital Markets Deane M. Dray deane.dray@rbccm.com
Argus Research John Eade jeade@argusresearch.com
Deutsche Bank Research John G. Inch john.inch@db.com
Credit Suisse Julian Mitchell julian.mitchell@credit-suisse.com
Jefferies Laurence Alexander lalexander@jefferies.com
Erste Group Martin Krajhanzl mkrajhanzl@csas.cz
William Blair Nicholas P. Heymann nheymann@williamblair.com
Stifel Nicolaus Robert P. McCarthy mccarthyr@stifel.com
Hilliard Lyons Spencer E. Joyce sjoyce@hilliard.com
Bernstein Research Steven E. Winoker steven.winoker@bernstein.com
Stifel Nicolaus Robert P. McCarthy mccarthyr@stifel.com
Bernstein Research Steven E. Winoker steven.winoker@bernstein.com
Langenberg, LLC Brian K. Langenberg brian@langenberg-llc.com
Deutsche Bank Research John G. Inch john.inch@db.com
RBC Capital Markets Deane M. Dray deane.dray@rbccm.com
Hilliard Lyons Spencer E. Joyce sjoyce@hilliard.com
Jefferies Laurence Alexander lalexander@jefferies.com
William Blair Nicholas P. Heymann nheymann@williamblair.com
Credit Suisse Julian Mitchell julian.mitchell@credit-suisse.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form
Net Operating Profit Less Adjusted Taxes NOPLAT  4,466 4,562 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF  4,959  5,242 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 34  59 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 25,600 26,687 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 17.45% 17.10% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 1,764 2,561 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR 39.50%  56.13% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
 WACCMarket 6.79%  6.55% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook  8.76%   7.77%
Enterprise value
 EVMarket 97,351  105,092 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  88,816  105,554
Long-Run Growth
 g = IR x ROIC
  6.89%  9.60% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP   2.50%   2.50%
Margin from Operations M  22.70%  23.31% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D  17.28%  17.36% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution
12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

  3.22  3.49  2.99%  2.97%  3.23%  3.75%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

 11.72 12.37 2.99% 2.97% 3.23% 3.75%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

 21.80 23.03 2.99% 2.97% 3.23% 3.75%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

 19.63 20.05 2.99% 2.97% 3.23% 3.75%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

 14.17 14.97 2.99% 2.97% 3.23%  3.75%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

 3.80 3.94 2.99% 2.97% 3.23%  3.75%

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