Solventum Corporation (SOLV) Financial Ratios
5 years of historical data (2021–2025) · Healthcare · Medical - Care Facilities
EV/EBITDA
↓
6.45
↓-30% vs avg
5yr avg: 9.26
30Y Low6.8·High11.8
P/FCF
N/A
—
5yr avg: 14.25
30Y Low14.3·High14.3
P/B Ratio
↓
2.62
↓-21% vs avg
5yr avg: 3.31
30Y Low2.8·High3.9
ROE
↑
38.9%
↓+142% vs avg
5yr avg: 16.1%
30Y Low7%·High39%
Debt/EBITDA
↓
1.89
↓-47% vs avg
5yr avg: 3.54
30Y Low1.9·High5.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SOLV Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Solventum Corporation trades at 8.5x earnings, 48% below its 5-year average of 16.4x, sitting at the 0th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.1x, the stock trades at a discount of 62%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Market Cap | $13.1B | $13.9B | $11.5B | — | — | — |
| Enterprise Value | $17.2B | $18.0B | $18.7B | — | — | — |
| P/E Ratio → | 8.49 | 8.92 | 23.93 | — | — | — |
| P/S Ratio | 1.57 | 1.67 | 1.39 | — | — | — |
| P/B Ratio | 2.62 | 2.75 | 3.88 | — | — | — |
| P/FCF | — | — | 14.25 | — | — | — |
| P/OCF | 35.40 | 37.64 | 9.68 | — | — | — |
P/E links to full P/E history page with 30-year chart
SOLV EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Solventum Corporation's enterprise value stands at 6.4x EBITDA, 30% below its 5-year average of 9.3x. The Healthcare sector median is 14.2x, placing the stock at a 55% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.17 | 2.27 | — | — | — |
| EV / EBITDA | 6.45 | 6.76 | 11.77 | — | — | — |
| EV / EBIT | 7.90 | 8.76 | 19.26 | — | — | — |
| EV / FCF | — | — | 23.26 | — | — | — |
SOLV Profitability
Margins and return-on-capital ratios measuring operating efficiency
Solventum Corporation earns an operating margin of 26.2%. Operating margins have expanded from 20.6% to 26.2% over the past 3 years, signaling improving operational efficiency. Return on equity of 38.9% is exceptionally high. ROIC of 16.9% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Gross Margin | 53.5% | 53.5% | 55.6% | 57.3% | 57.7% | 60.2% |
| Operating Margin | 26.2% | 26.2% | 12.6% | 20.6% | 20.8% | 23.0% |
| Net Profit Margin | 18.7% | 18.7% | 5.8% | 16.4% | 16.5% | 17.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| ROE | 38.9% | 38.9% | 6.6% | 11.5% | 11.3% | 12.1% |
| ROA | 10.8% | 10.8% | 3.4% | 9.8% | 9.7% | 10.4% |
| ROIC | 16.9% | 16.9% | 5.2% | 8.1% | 10.7% | 11.8% |
| ROCE | 19.0% | 19.0% | 8.6% | 13.8% | 13.6% | 14.8% |
SOLV Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Solventum Corporation carries a Debt/EBITDA ratio of 1.9x, which is manageable (41% below the sector average of 3.2x). Net debt stands at $4.2B ($5.0B total debt minus $878M cash). Interest coverage of 5.9x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Debt / Equity | 1.00 | 1.00 | 2.71 | 0.71 | — | — |
| Debt / EBITDA | 1.89 | 1.89 | 5.03 | 3.69 | — | — |
| Net Debt / Equity | — | 0.82 | 2.45 | 0.70 | -0.01 | -0.01 |
| Net Debt / EBITDA | 1.56 | 1.56 | 4.56 | 3.60 | -0.03 | -0.04 |
| Debt / FCF | — | — | 9.00 | 4.99 | -0.04 | -0.05 |
| Interest Coverage | 5.94 | 5.94 | 2.65 | — | — | — |
SOLV Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.23x means Solventum Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.89x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 1.46x to 1.23x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Current Ratio | 1.23 | 1.23 | 1.20 | 1.46 | 1.70 | 1.56 |
| Quick Ratio | 0.89 | 0.89 | 0.84 | 0.96 | 1.04 | 0.98 |
| Cash Ratio | 0.28 | 0.28 | 0.28 | 0.11 | 0.05 | 0.06 |
| Asset Turnover | — | 0.58 | 0.57 | 0.59 | 0.60 | 0.58 |
| Inventory Turnover | 3.63 | 3.63 | 3.79 | 4.09 | 3.93 | 4.00 |
| Days Sales Outstanding | — | 45.33 | 54.35 | 58.47 | 52.57 | 52.58 |
SOLV Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Solventum Corporation does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 11.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Earnings Yield | 11.8% | 11.2% | 4.2% | — | — | — |
| FCF Yield | — | — | 7.0% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $175M | $174M | $173M | $172M | $172M |
Peer Comparison
Compare SOLV with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 SOLVYou | $13B | 8.5 | 6.4 | — | 53.5% | 26.2% | 38.9% | 16.9% | 1.9 |
 BAX | $10B | -11.4 | 27.2 | 31.8 | 30.1% | -2.7% | -14.6% | -1.4% | 14.9 |
 BDX | $52B | 24.7 | 14.0 | 19.5 | 45.4% | 11.8% | 6.5% | 4.3% | 3.8 |
 COO | $13B | 35.2 | 14.0 | 29.6 | 60.7% | 16.7% | 4.6% | 4.8% | 2.5 |
 HOLX | $17B | 30.5 | 17.4 | 18.4 | 61.0% | 17.4% | 11.1% | 9.4% | 2.6 |
 ICU | $122M | -0.5 | — | — | 95.7% | -986.6% | -295.2% | — | — |
 HSIC | $9B | 24.4 | 11.9 | 16.0 | 29.1% | 5.7% | 8.3% | 7.1% | 3.4 |
 SYK | $118B | 36.6 | 21.2 | 27.5 | 64.0% | 19.5% | 15.1% | 11.4% | 2.4 |
 ZBH | $17B | 24.8 | 9.8 | 11.7 | 61.6% | 16.5% | 5.6% | 5.4% | 3.1 |
 DXCM | $28B | 34.7 | 24.4 | 26.0 | 60.0% | 19.6% | 34.5% | 18.7% | 1.2 |
 ALGN | $13B | 32.2 | 15.2 | 26.6 | 68.3% | 15.3% | 10.4% | 15.4% | 0.1 |
| Healthcare Median | — | 22.1 | 14.2 | 18.5 | 63.9% | -4.3% | -32.6% | -11.6% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 5 years · Updated daily
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SOLV — Frequently Asked Questions
Quick answers to the most common questions about buying SOLV stock.
What is Solventum Corporation's P/E ratio?
Solventum Corporation's current P/E ratio is 8.5x. The historical average is 16.4x.
What is Solventum Corporation's EV/EBITDA?
Solventum Corporation's current EV/EBITDA is 6.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.3x.
What is Solventum Corporation's ROE?
Solventum Corporation's return on equity (ROE) is 38.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.1%.
Is SOLV stock overvalued?
Based on historical data, Solventum Corporation is trading at a P/E of 8.5x. Compare with industry peers and growth rates for a complete picture.
What are Solventum Corporation's profit margins?
Solventum Corporation has 53.5% gross margin and 26.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Solventum Corporation have?
Solventum Corporation's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.