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Is Solventum Corporation (SOLV) overvalued or undervalued?

Updated Nov 10, 2026 · hand-researched model · educational, not advice

Fair value
$107.18
Market price
$90.43
Upside to fair value
+18.5%
Verdict
16% below fair value

Test the assumptions — move the discount rate

The DCF value below is a real engine result at each WACC (not a re-estimate). Drag to see how sensitive SOLV's DCF is to the discount rate.

Market price: $90.43

At a recent price of $90.43, Solventum Corporation (SOLV) trades 16% below TickerWorth's blended fair value of $107.18 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices SOLV undervalued vs our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +18.5% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.

One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values SOLV at about $108.53 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.

The valuation discounts Solventum Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 8.4%, with a long-run terminal growth rate of 2.5%. About 80% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -1.3% annual revenue growth for SOLV. Our base case instead compounds to about 3.9% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, SOLV's modeled DCF value ranges from about $68.65 to $207.51 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Solventum Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of SOLV's intrinsic value. Figures update as new filings and prices come in.

The assumptions behind SOLV's DCF

InputValueSource
Base-year revenue$7,828,000,000Solventum Q4 2025 earnings release, 8-K Ex-99.1 (accession 0001964738-26-000005, filed 2026-02-26); FY2025 10-K (accession 0001964738-26-000007): CONTINUING BUSINESS ONLY. Reported FY2025 net sales were $8,325M, but that includes $497M of Purification & Filtration (P&F) sales for January-August 2025; P&F was sold to Thermo Fisher on 2025-09-01 for ~$4B cash (10-Q Note 3). $8,325M - $497M = $7,828M = MedSurg $4,817M + Dental $1,349M + Health Information Systems $1,360M + All Other $302M (the retained drinking-water business and legacy 3M supply agreements). Reported FY2025 growth of +0.9% is meaningless for that reason; organic growth was +3.3%. Health Information Systems (HIS) is KEPT IN this base even though Solventum announced on 2026-08-05 its intent to separate it, because no structure, buyer or date exists yet (see special_cases). CROSS-CHECK: H1 2026 revenue $4,216M vs H1 2025 ex-P&F $3,862M ($4,231M - $369M) = +9.2%, of which ~$125M (~3.2 pts) is customers ordering ahead of the July 2026 US ERP cutover and will reverse in Q3, plus Acera (acquired Dec 2025) and ~1.8 pts of currency.
Base EBIT margin12.0%Solventum Q4 2025 earnings release, 8-K Ex-99.1 (accession 0001964738-26-000005) — FY2025 non-GAAP reconciliation and segment table: DERIVED, and the definition matters: this model's 'EBIT' is operating income BEFORE amortization of acquired intangibles (see da_pct_revenue for why) but AFTER every real cash cost, including the 3M-separation and restructuring spend that Solventum's 'adjusted' figure leaves out. Build: adjusted operating income $1,709M - P&F segment operating income $96M = $1,613M (20.6% of $7,828M); less 3M spin-off/separation costs $579M, restructuring $80M and Acera deal costs $12M = $942M = 12.0%. TIES TO GAAP: GAAP operating income $2,181M - $1,549M gain on the P&F sale + $312M amortization - $96M P&F operating income + $44M P&F-sale costs + $51M litigation costs = $943M. Litigation is handled in net debt, not here. The reported GAAP margin of 26.2% is NOT usable — 18.6 points of it is the one-off gain on selling P&F. CROSS-CHECK H1 2026: adjusted operating income $1,019M - separation $308M - restructuring $82M - Acera $21M - HIS separation $6M + P&F TSA mark-up $12M = $614M / $4,216M = 14.6%, flattered by ~$100M of IEEPA tariff refunds and the ERP pull-forward in Q2.
Forecast revenue growth5% → 4% → 4% → 4% → 3%Assumption — TickerWorth's 5-year explicit forecast
Risk-free rate5.2%US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; program-wide input shared by every researched model in this run.
Beta0.85Assumption — normalized estimate (published Yahoo/yfinance beta 0.703): NORMALIZED UP from the published 0.703 — CONSERVATIVE (raises WACC, lowers value). Reason: Solventum has only traded since 2024-04-01, so a '5Y monthly' beta is really ~30 monthly observations, dominated by spin-off flows; and the company carries ~26% debt in its capital structure, an uncapped Bair Hugger litigation indemnity and two separations in flight. 0.85 sits between the published figure and the ~0.9-1.0 typical of levered diversified medtech. At the published 0.703 the value is about $123; at 1.0 about $96; the market price implies about 1.12.
Terminal growth2.5%Assumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Reasonable for hospital consumables and dental, whose volumes track ageing and procedure counts; the 4-5% LRP organic target is a medium-term claim, not a perpetual one. Must stay below WACC (8.35%). At 2.0% the value falls ~$9.
Diluted shares173MSolventum Q2 2026 10-Q (accession 0001964738-26-000047, filed 2026-08-05): Q2 2026 weighted-average diluted shares 173.3M (H1 174.4M; FY2025 ~175M). CONSERVATIVE: the weighted average lags the buyback — Solventum repurchased 4.8M shares for $355M in H1 2026 ($288M in Q2 alone), leaving 170.1M outstanding at 2026-06-30. On ~170.7M (outstanding plus ~0.6M of dilutive awards) the value would be ~$1.65 higher. Repurchases after June 30 are not yet reported.
Market price$90.43Delayed quote · as of 2026-11-10 05:38 UTC

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TickerWorth is an educational DCF tool, not a licensed investment adviser. Figures are estimates derived from public filings and market data and can be wrong.