US Equities Analysis

SOLV — Solventum

Research evidence pack

Source-backed valuation visuals

Loading verified snapshot
Loading verified market, valuation, and statement data.

2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 5.58%
Profit Margins 17.33%
Return on Equity 34.79%
Return on Assets 2.75%
Free Float 0.15B
Short Int % Utilisation 5.15%

2.2 Growth

Metric Value
Revenue Growth -3.0%
Free Cash Flow 0.38B
EBITDA 16.68 (Ratio)
Enterprise Value 18.75B
EV/Revenue 2.27
EV/EBITDA 16.68

Revenue growth of -3.0% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 30.07%
Risk / Std Dev (Ann.)* 30.10%
1-Year Price Return* 24.04%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $88.59
52-Week Range $62.38 – $90.00
Observation Count 250 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $8.32B
Prior annual revenue $8.25B
EBIT $2.06B
Tax rate 9.17%
NOPAT = EBIT × (1 − tax rate) $1.87B
Forecast start-growth basis 0.86%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $1.87B
Add: depreciation & amortisation $489.00M
Less: capital expenditure -$379.00M
Less/(add): working-capital cash-flow movement -$119.00M
Current unlevered FCFF $1.86B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 0.86% $1.89B $493.21M -$382.26M -$120.02M $1.88B $1.81B
2 1.27% $1.91B $499.47M -$415.20M -$121.55M $1.87B $1.68B
3 1.68% $1.94B $507.86M -$450.74M -$123.59M $1.88B $1.57B
4 2.09% $1.98B $518.48M -$489.32M -$126.17M $1.89B $1.46B
5 2.50% $2.03B $531.44M -$531.44M -$129.33M $1.90B $1.38B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.67
Cost of equity 8.40%
Pre-tax cost of debt 5.32%
WACC 7.50%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $39.01B
Implied terminal EV / EBITDA 14.08x
Terminal value as % of enterprise value 77.47%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $7.90B
Present value of terminal value $27.17B
Indicated enterprise value $35.06B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $35.06B
Less: gross interest-bearing debt $5.04B
Add: cash and equivalents $878.00M
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $30.91B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 175,300,000.00
Share-count basis reported diluted weighted-average shares
Current market price $87.93
DCF indicative value per share $176.31
Indicative value vs. market price 100.50%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 2/4 evidenced checks
Lynch-inspired balance-and-growth checks 2/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:49:06.590721 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

us-equity stock equity solv health-care health-care-technology nasdaq