MMMNEUTRAL

MMM P/E Ratio Analysis

26.4x

Higher than 55% of Industrials sector peers

Updated 297h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 26.4x means investors pay $26.40 for every $1 of 3M’s trailing earnings.

Sector Performance

55th percentile

MMM

26.4x

Sector Median

23.1x

Sector Avg

36.1x

Prior Period

28.6x(Jul 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 26.4x means investors pay $26.40 for every $1 of 3M’s trailing earnings.

That is above the sector median of 23.1x, placing 3M at the 55th percentile among Industrials peers, so it is moderately more expensive than half its sector. The year-over-year change is not available, while the quarter-over-quarter change is -7.8%, indicating the multiple contracted from 28.6x to 26.4x over the last quarter. A lower P/E can reduce valuation risk, but the current level still sits above the sector norm, so the combination leaves limited margin of safety. This supports the overall NEUTRAL verdict because valuation is neither cheap enough to be a clear opportunity nor stretched enough to warrant avoidance. The metric aligns with a balanced outlook.

Frequently Asked Questions

What does the P/E Ratio tell investors about MMM?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does MMM's P/E Ratio compare to its sector?

MMM's P/E Ratio of 26.4x compares to a Industrials sector median of 23.1x, placing it in the 55th percentile.

Who are MMM's closest peers by P/E Ratio?

The closest Industrials peers by P/E Ratio include: POOL (19.8x), ALLE (19.6x), AVY (18.6x), AOS (17.8x), ADP (17.6x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.