4 models fit Solventum Corporation Common Stock and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Gold82
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionSolventum Corporation Common Stock (SOLV)
Fair value (4 models)
$125
ACCE price target
$85.80
Rating
Undervalued
Horizon
12 months
Fair value published on 17 Oct 2026, 00:00 CEST; previously $123 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Price used: $85.41 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
31.5% below
+46.0% to fair value
ACCE score
67
out of 100
Analysts
53% buy
15 covering
P/E
10.5x
forward 11.8x
1-year return
+18.2%
Dividend yield
0.00%
Solventum Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Solventum is the healthcare business spun out of 3M, selling wound care dressings, surgical and medical tapes, infusion and dental products, and health information systems to hospitals and clinics. Its moat rests on installed clinical relationships and brands that surgeons and nurses already specify, which tends to slow share loss in consumables. Revenue growth is only 2.2%, so the case depends on margin and cash conversion rather than top-line acceleration, and the margin gap between a 54.8% gross margin and a 9.8% operating margin is the first thing to diligence, along with how much of that is standalone-company cost. At 10.5x trailing and 11.8x forward earnings, the stock screens cheap against its 34.0% ROE, which is worth testing against leverage and any one-time items. It does not belong in an index today, so the name is not on a benchmark-driven buying path and any interest would have to come from the fundamentals alone.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Free cash flow negative
FCF is reported at $-10,000,000 against a $14.6B market cap, so the 13.1 forward P/E rests on earnings that aren't yet converting to cash. Debt/Equity is 1.00.
moderate
Growth slowing to low single digits
Revenue grew 2.2% YoY and earnings 3.9%, below the 5-year revenue CAGR of 2.7% only marginally, so top-line momentum is modest for a company carrying this leverage.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Solventum's return on equity of 34.0% shows strong profitability on the capital shareholders have put in.
Earnings beat expectations, with earnings per share of 2.55 against 1.91 expected, a 33.5% surprise.
Its forward P/E of 13.1x sits well below the sector median of 24.2x, so the shares look cheap against peers.
Why it could disappoint
Free cash flow over the last 12 months was negative, at -$10M, which means the business did not generate spare cash.
Revenue grew only 2.2% year over year, slower than its 2.7% average over five years.
Share count rose 0.5% last year, so each shareholder's slice of earnings shrank a little.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where SOLV's valuation models land
Price
$85.41
Model fair value
$125
Model range
$77.23 to $173
Fair value $125
Price $85.41
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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