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3M Company (MMM) — WACC Analysis

WACC Breakdown

3M Company (MMM) has a weighted average cost of capital (WACC) of 8.1%. The cost of equity is 8.5%, derived from a beta of 0.84 and a risk-free rate of 4.7%. The after-tax cost of debt is 5.5%. The capital structure is 87.8% equity and 12.2% debt.

Interpretation

A WACC of 8.1% is moderate, reflecting the market's balanced risk assessment of 3M Company.

Investors can compare MMM's WACC of 8.1% against industry peers to gauge its relative financing costs. A beta of 0.84 reflects the stock's volatility relative to the broader market.

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VALUATION

MMM WACC: 8.14% for 3M Company

Current inputs imply a 8.51% cost of equity and a 6.93% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

3M Company Common Stock (MMM) WACC Results
Weighted Average Cost of Capital
8.14%
Cost of Equity
8.51%
Risk-Free Rate4.73%
Beta0.84
Market Risk Premium4.23%
Cost of Debt
5.48%
Pre-Tax Cost of Debt6.93%
Tax Rate21.00%
Tax Shield1.46%
Capital Structure
Equity: 87.75%($89.91B)
Debt: 12.25%($12.55B)
Equity Component
7.47%
87.75% × 8.51%
Debt Component
0.67%
12.25% × 5.48%

3M Company (MMM) WACC in context

3M Company (MMM) currently screens with an estimated WACC of 8.14%. That blends a 8.51% cost of equity, a 6.93% pre-tax cost of debt, and a 87.75% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What MMM WACC implies

A 8.14% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MMM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.84 and equity accounts for 87.75% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.