3m Stock Analysis

3M Stock Analysis

Contents

Background and Business of 3M...................................................................................3

ROE and Future Growth Analysis of 3M.......................................................................4

CAPM and Valuation Techniques Analysis of 3M.........................................................6

Reference........................................................................................................................8

Background and Business of 3M

3M.Co (NYSE:MMM) is fundamentally a science-based company. It produces thousands of imaginative products, and 3M is a leader in scores of markets - from health care and highway safety to office products and abrasives and adhesives. 3M's success begins with its ability to apply its technologies - often in combination - to an endless array of real-world customer needs. [1]

3M has its business on following areas. [2]

* Consumer and Office Business

* Display and Graphics Business

* Electro and Communications Business

* Health Care Business

* Industrial and Transportation Business

* Safety, Security and Protection Service Business

3M does success on life cycle of its products. All of the market products could be classified into two types; one is products with limited life, the others without limited life. Products without limited life means that the company could sell the products in a long-time without worried about expired date. 3M has its products of electro and communication with a long-using period, the products could only be phase out by technology development but not expired date. At the same time, 3M provides safety, security and protection service as one of its main businesses, the service business always has no limited life. Meanwhile, 3M's products, whatever consumer and office cleaning products, display and graphics products, and industrial products, all of these products have a long-term products...