Is 3M Co. overvalued or undervalued?

As of 12 September 2025, the valuation grade for 3M Co. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios highlight this assessment, with a P/E ratio of 45, a Price to Book Value of 30.28, and an EV to EBITDA of 23.08, all suggesting that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, 3M Co. has a P/E ratio of 41.91, which is higher than the industry average, and an EV to EBITDA of 25.39, further emphasizing its expensive valuation. The company’s recent stock performance shows a YTD return of 20.38%, which outpaces the S&P 500's 12.22% return, but over longer periods, such as 5 years, it significantly lags behind the S&P 500's 96.61% return. This discrepancy reinforces the notion that 3M Co. may be overvalued in the current market.