PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, 3M Co's PE Ratio without NRI is 10.19. 3M Co's 5-Year EBITDA growth rate is 1.50%. Therefore, 3M Co's PEG Ratio for today is 6.79.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for 3M Co's PEG Ratio or its related term are showing as below:
MMM'
s PEG Ratio Range Over the Past 10 Years
Min: 2.43 Med: 4.84 Max: 18.02
Current: 6.79
During the past 13 years, 3M Co's highest PEG Ratio was 18.02. The lowest was 2.43. And the median was 4.84.
MMM's PEG Ratio is ranked worse than 89.85% of 197
companies
in the Conglomerates industry
Industry Median: 0.92
vs MMM: 6.79
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
3M Co PEG Ratio Historical Data
The historical data trend for 3M Co's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
3M Co Annual Data
Trend
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
PEG Ratio
4.56
12.62
14.14
7.19
5.50
3M Co Quarterly Data
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
PEG Ratio
6.30
13.79
4.89
5.50
5.00
Competitive Comparison
For the Conglomerates subindustry, 3M Co's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
3M Co PEG Ratio Distribution
For the Conglomerates industry and Industrials sector, 3M Co's PEG Ratio distribution charts can be found below:
* The bar in red indicates where 3M Co's PEG Ratio falls in comparison to its industry or sector. The grey bar indicates the PEG Ratio's extreme value range as defined by GuruFocus.
3M Co PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
3M Co (NYSE:MMM) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
3M Co PEG Ratio Related Terms
Thank you for viewing the detailed overview of 3M Co's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories. As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.
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