Health Care · Health Care Technology · US stock · price as of 22 Oct 2026
Key indicators
Price
$87.45
52-week range
$62.38 – $94.16
Market cap
$15.2B
P/E (trailing)
10.7×
EV / EBITDA
7.7×
Free-cash-flow yield
−0.8%
Dividend yield
–
Revenue (last 12 months)
$8.3B
Revenue growth (3y a year)
0.8%
Operating margin
25.0%
Return on invested capital
18.5%
Net debt / EBITDA
1.8×
Fair value
Fair value (average of valid models)$112.33 middle half of models $90 – $123
Versus priceUndervalued+29% to fair value
P/E multiple
$85.90
P/B multiple
$86.28
P/S multiple
$85.22
EV/EBITDA multiple
$118.68
EV/EBIT multiple
$147.32
EV/revenue multiple
$90.28
10-year DCF, EBITDA exit
$115.82
5-year DCF, EBITDA exit
$106.07
10-year DCF, revenue exit
$113.75
5-year DCF, revenue exit
$102.60
10-year DCF, growth exit
$128.72
5-year DCF, growth exit
$122.78
Earnings power value
$156.82
Model uncertainty
Medium
X-Ray Score
48/ 100 · Medium confidence · ahead of 47% of sector peers
Valuation67
Growth27
Profitability47
Financial health48
Dividends–
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Solventum is a health care company that supplies products and software to hospitals, clinics, dental practices and health systems. Its portfolio covers wound care and surgical supplies, infection prevention, dental and orthodontic products, and software that helps providers manage clinical information and billing. It was spun out of its former parent company and operates through segments built around medical and surgical products, dental solutions and health information systems.
Revenue comes from the products and software that health care providers order, along with service and support. Sales were $8.3 billion over the last twelve months, with growth of 0.8% a year across the last three years. The operating margin is 25.0%, and the business earns a profit of 19% on the capital invested in it. Net debt is 1.8 times EBITDA, and no dividend is paid.
StocksXray gives Solventum Corp an X-Ray Score of 48 out of 100 (medium confidence), ahead of 47% of the S&P 500 stocks in its sector. Its strongest lens is valuation (67) and its weakest is growth (27).
Our fair value (the average of the valid models) is $112.33 (range $90.28 to $122.78). At $87.45 the stock trades 22% below that value, so the label is "Undervalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Solventum Corp (SOLV)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
Now
Price
–
–
$66.06
$79.24
$87.45
Market cap
–
–
$11.5B
$13.9B
$15.2B
P/E
–
–
23.9×
8.9×
10.7×
EV / revenue
–
–
2.3×
2.2×
2.4×
EV / EBITDA
–
–
11.8×
6.8×
7.7×
Price / free cash flow
–
–
14.3×
–
–
Free-cash-flow yield
–
–
7.0%
−0.1%
−0.8%
Price / book
–
–
3.9×
2.8×
3.2×
Dividend yield
–
–
–
–
–
Fundamentals checklist ● 4 Good · ● 5 Average · ● 6 Bad · each check graded against the sector
Cash quality
Earnings backed by cash8.6%Bad
Free-cash-flow yield−0.8%Bad
Risk models
Altman Z score2.0×Bad
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)4.5%Average
Revenue growth (3y)0.8%Bad
Growth consistency80%Bad
Balance sheet
Current ratio1.0×Bad
Net debt / EBITDA1.8×Average
Interest coverno interest costGood
Valuation
Fair value vs price1.3×Good
EBIT / EV yield10.5%Good
Profitability
Return on invested capital18.5%Average
Operating margin25.0%Good
Gross profitability31.9%Average
XStocksXray
Solventum Corp (SOLV)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
LTM
Revenue
8,130
8,197
8,254
8,325
8,310
Gross profit
4,695
4,693
4,593
4,451
4,545
Operating income
1,693
1,692
1,036
2,181
2,076
Net income
1,343
1,346
479
1,556
1,434
Diluted EPS ($)
7.78
7.79
2.76
8.88
8.20
Free cash flow
1,428
1,625
805
-10
-118
Gross margin
57.7%
57.3%
55.6%
53.5%
54.7%
Operating margin
20.8%
20.6%
12.6%
26.2%
25.0%
Net margin
16.5%
16.4%
5.8%
18.7%
17.3%
Balance sheet
FY22
FY23
FY24
FY25
LTM
Total assets
–
13,943
14,457
14,294
14,243
Cash
61
194
762
878
403
Total debt
–
0
8,010
5,035
5,079
Equity
11,742
11,666
2,959
5,049
4,800
Dividend per share ($)
–
–
–
–
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
