Using the industry peer median P/E multiple (trailing + forward), Solventum Corporation (SOLV) has a fair value of $188.55 based on 3 comparable companies in the Medical - Care Facilities industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Solventum CorporationSOLV | 11,352 | 7.3x | 10.7x |
| Align Technology, Inc.ALGN | 12,758 | 31.5x | 17.4x |
| Universal Health Services, Inc.UHS | 11,825 | 8.1x | 8.6x |
| Revvity, Inc.RVTY | 9,788 | 42.1x | 16.2x |
| Industry Median | 31.5x | 16.2x | |
| (*) Profit after tax | 1,556 | 1,057 | |
| Equity Value | 48,970 | 17,137 | |
| (/) Outstanding shares | 175 | 175 | |
| Fair Price | $279 | $98 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.