MMM undervalued?

Take a look at the charts. Nothing much has been going on for the past 2 years and the share price has been hovering. Right now, it is at a share price of around $78.

Is it a possible undervaluation. Possibly?

According to moneycentral, it has a a net profit growth of 22.4% compared to 12.5% for the industry. Also 5 year average profit margins are greater than the average of the industry which is 10.5%.Its earnings per share has been growing from $3.83 to $5.16 from fiscal year 2004 to fiscal year 2006.And it is trading at a PE of 15.3 compared with the industry norm which is 18.4.

Other financials include:

Book Value/ Share Debt/ Equity Return on Equity (%) Return on Assets (%) Interest Coverage
12/06 $13.56 0.36 38.7 18.1 46.7
12/05 $13.78 0.23 30.3 15.3 59.2
12/04 $13.42 0.27 27.4 13.7 62.7
12/03 $10.06 0.37 30.5 13.7 44.2
12/02 $7.68 0.56 32.9 12.9 38.1
12/01 $7.78 0.48 23.5 9.8 18.3
12/00 $8.24 0.43 28.4 12.8 27.5
12/99 $7.89 0.42 28.0 12.7 27.1
12/98 $7.38 0.52 20.4 8.6 14.7
12/97 $7.32 0.42 35.8 16.0 28.5

As you can see book value has been growing steadily which is indicative of good management.

On top of that, gurus have also bought it. Hence, is it undervalued? We leave that to you to decide!!!