3M Company (NYSE:MMM)

CAPS Rating: 5 out of 5

More than just Post-it Notes and Scotch tape, 3M operates in areas that include health care, industrial, and transportation.


Player Avatar JohnCLeven (75.76) Submitted: 11/12/2012 10:22:02 PM : Outperform Start Price: $86.50 MMM Score: +15.47

MMM is like a coiled spring. For the past 8 years, the stock price has remained stagnant, while the intrinsic value keeps growing and growing. Like clockwork, MMM's return on invested capital comes in consistently around 20% while its weighted cost of capital comes in around 6%. This spread of about 14% per yr represents the companies intrinsic value growth rate. DCF shows MMM to be worth $130, $100ish with a margin of safety. MMM's price will eventually have to catch up to the fundamentals. Outperform.

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