Valuecruncher Valuation
Your Valuation
42.77%
| Valuation | Member |
 Date
|
Popularity | Views | Comments | ||
|---|---|---|---|---|---|---|---|
| $92.23 |
42.77%
|
Valuecruncher | 06 Oct 2008 |
0 votes
|
0 votes
|
0 | 0 |
| $85.16 |
16.72%
|
TheCrunchBlog | 24 Jun 2008 |
0 votes
|
0 votes
|
245 | 1 |
| $89.74 |
22.9%
|
GordonGekko | 24 Jun 2008 |
0 votes
|
0 votes
|
31 | 0 |
| $70.37 |
 -7.19%
|
acoy | 11 Jun 2008 |
0 votes
|
1 vote
|
38 | 0 |
| $79.32 |
2.12%
|
GordonGekko | 14 May 2008 |
0 votes
|
0 votes
|
35 | 0 |
| $85.84 |
12.47%
|
tiger | 12 May 2008 |
1 vote
|
0 votes
|
44 | 0 |
| $0.00 |
-100.0%
|
Sam | 23 Apr 2008 |
0 votes
|
1 vote
|
43 | 0 |
Recent Comments
Latest Price
| Price: | $64.60 |
| Updated: | 5 hours ago |
| Ticker: | MMM |
| Market: | NYSE |
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This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/06/3m-more-more-more-looks-cheap/
3M grew revenues from US$16.3 billion in 2002 to US$24.5 billion in 2007 – 8.4% compound annual growth rate. Our assumptions of revenues for the next three years are US$26.5 billion in 2008 growing to US$29.5 billion in 2010 – 6.4% compound annual growth rate. We have projected EBITDA margins remaining flat at 26.5%.
We have used a terminal growth rate of 2.5%. We calculated this terminal growth rate based on year three growth (2009 to 2010) of 5% dropping to a 2% stable growth rate over the next ten years.
We have used a WACC (discount rate) of 9%. The WACC (discount rate) has a material impact on a discounted cash flow valuation (as does the terminal growth rate). We think this WACC of 9% is reasonable but recognise that the actual number could be as low as 7.5-8.0% or as high as 10%.
We used a terminal capital expenditure number of US$1.5 billion.