SOLV Valuation

Solventum Corp

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70.760

-0.66(-0.924%)1D

Overview
Forecast
Valuation
Earnings

SOLV Relative Valuation

SOLV's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SOLV is overvalued; if below, it's undervalued.

Historical Valuation

Solventum Corp (SOLV) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.09 is considered Undervalued compared with the five-year average of 12.30. The fair price of Solventum Corp (SOLV) is between 83.90 to 95.84 according to relative valuation methord. Compared to the current price of 71.14 USD , Solventum Corp is Undervalued By 15.21%.

Relative Value

Fair Zone

83.90-95.84

Current Price：71.14

15.21%

Undervalued

12.03

Trailing

Forward

8.98

EV/EBITDA

Solventum Corp. (SOLV) has a current EV/EBITDA of 8.98. The 5-year average EV/EBITDA is 9.04. The thresholds are as follows: Strongly Undervalued below 6.48, Undervalued between 6.48 and 7.76, Fairly Valued between 10.33 and 7.76, Overvalued between 10.33 and 11.61, and Strongly Overvalued above 11.61. The current Forward EV/EBITDA of 8.98 falls within the Historic Trend Line -Fairly Valued range.

11.24

EV/EBIT

Solventum Corp. (SOLV) has a current EV/EBIT of 11.24. The 5-year average EV/EBIT is 11.08. The thresholds are as follows: Strongly Undervalued below 8.07, Undervalued between 8.07 and 9.58, Fairly Valued between 12.59 and 9.58, Overvalued between 12.59 and 14.10, and Strongly Overvalued above 14.10. The current Forward EV/EBIT of 11.24 falls within the Historic Trend Line -Fairly Valued range.

1.43

Solventum Corp. (SOLV) has a current PS of 1.43. The 5-year average PS is 1.42. The thresholds are as follows: Strongly Undervalued below 1.13, Undervalued between 1.13 and 1.27, Fairly Valued between 1.56 and 1.27, Overvalued between 1.56 and 1.70, and Strongly Overvalued above 1.70. The current Forward PS of 1.43 falls within the Historic Trend Line -Fairly Valued range.

12.28

P/OCF

Solventum Corp. (SOLV) has a current P/OCF of 12.28. The 5-year average P/OCF is 10.93. The thresholds are as follows: Strongly Undervalued below 7.74, Undervalued between 7.74 and 9.33, Fairly Valued between 12.53 and 9.33, Overvalued between 12.53 and 14.12, and Strongly Overvalued above 14.12. The current Forward P/OCF of 12.28 falls within the Historic Trend Line -Fairly Valued range.

16.70

P/FCF

Solventum Corp. (SOLV) has a current P/FCF of 16.70. The 5-year average P/FCF is 19.54. The thresholds are as follows: Strongly Undervalued below 11.23, Undervalued between 11.23 and 15.38, Fairly Valued between 23.69 and 15.38, Overvalued between 23.69 and 27.85, and Strongly Overvalued above 27.85. The current Forward P/FCF of 16.70 falls within the Historic Trend Line -Fairly Valued range.

Solventum Corp (SOLV) has a current Price-to-Book (P/B) ratio of 3.40. Compared to its 3-year average P/B ratio of 3.63 , the current P/B ratio is approximately -6.46% higher. Relative to its 5-year average P/B ratio of 3.63, the current P/B ratio is about -6.46% higher. Solventum Corp (SOLV) has a Forward Free Cash Flow (FCF) yield of approximately 1.16%. Compared to its 3-year average FCF yield of 9.89%, the current FCF yield is approximately -88.29% lower. Relative to its 5-year average FCF yield of 9.89% , the current FCF yield is about -88.29% lower.

3.38

P/B

Median3y

3.63

Median5y

3.63

1.19

FCF Yield

Median3y

9.89

Median5y

9.89

Competitors Valuation Multiple

The average P/S ratio for SOLV's competitors is 1.82, providing a benchmark for relative valuation. Solventum Corp Corp (SOLV) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 3.84%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Fresenius Medical Care AG

Encompass Health Corp

Hims & Hers Health Inc

Performance Decomposition

Market capitalization of SOLV increased by 10.37% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.76 to 32.53.

The secondary factor is the Revenue Growth, contributed 3.84%to the performance.

Overall, the performance of SOLV in the past 1 year is driven by P/E Change. Which is more unsustainable.

3.84%

2.08B → 2.16B

Revenue Growth

-2.80%

4.28 → 4.16

Margin Expansion

9.33%

29.76 → 32.53

P/E Change

10.37%