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Solventum Corp

SOLVWithin bandExpectations · demanding

Held by 5 superinvestors.

Price$91.53
Holders5
Total value$1.18B

SEC 10-K · fundamentals

Business quality

as of 2025-12-31

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

Revenue growth
+0.9%
Net margin
18.7%
ROE
30.8%
FCF margin
-0.1%
Revenue $8.13B → $8.32B · 4y
What makes a business high quality

Valuation · value band

In fair-value range

$74/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$92
cheaperpricier

Zero-growth floor

$52

Central IV

$74

Optimistic top

$166

Solventum Corp (SOLV): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $52–$166 / sh. Today’s price sits inside both (price $92 as of 2026-08-26).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 0% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 10.8% · Zero-growth downside $52

Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.

Method & numbers

Model cautions

  • Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).
  • The two methods’ midpoints differ materially — growth assumptions warrant review (over 20%).

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $65.31 – $85.14 · Greenwald $117.91 – $166.33 (neutral $141.51) · zero-growth base $86.62 · reproduction $14.01

Moat Franchise (moat) · terminal value 36% of present value · owner-earnings yield 9% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$51.94 – $69.48 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: TTM 2026-06-30, 2024, 2023, 2022

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 114% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$71.15 – $86.62 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9.2–11.2% band (9–11% base + 0.2pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: TTM 2026-06-30, 2024, 2023, 2022

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 114% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 0.2pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 3.4 years of owner earnings, adding 0.2pp of cost-of-equity risk premium.

Reproduction value = tangible net assets $-3.23B + capitalized R&D $1.65B（FY 2026, 2024, 2023, 2022） = $14.01 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a narrow moat · competitive-advantage period ≈ 10 years.

Growth value: if the moat holds for 10 yr at ROIIC ≈ 2610%, $31.28–$79.70 / sh (neutral $54.89). Conservative, not a forecast.

Window TTM 2026-06-30, FY 2024, 2023, 2022 · discount band 9%–11% · normalized tax 19% (Average effective tax rate over 4 year(s), capped at the statutory 21%.) · diluted shares.

Baseline 9%–11%, net debt ≈ 3.4 years of owner earnings → +0.2pp cost-of-equity premium → effective 9.2%–11.2%.

Owner-earnings DCF: growth g₁ 0% · OE FY TTM 2026-06-30, 2024, 2023, 2022 · Discount band: 9.35%–12.19% (DGS10 +4.5% to a 12% strict end, each +0.19pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 63%.

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

What the price is betting

Today's price pencils in about 4.1% a year in owner-earnings for the next few years. Revenue actually grew 0.8% a year.

The market wants it well ahead of its own track record.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

5 holders · $1.18B combined · this quarter +0 opened / -0 exited

This quarter1 added3 trimmed
Holders 6 → 5 · last 8q

SEC 13F · notes

Written summary

Solventum Corp (SOLV) is held by 5 of the superinvestors tracked on Compounder, with a combined $1.18B in reported 13F value. The largest position belongs to Nelson Peltz, where it makes up 15.0% of the portfolio.

Other notable holders by value include Christopher Davis (2.1% of its book), Richard Pzena (0.1% of its book) and Jeremy Grantham (0.0% of its book).

Over the latest quarter, 0 of the tracked filers opened a new position in SOLV, 1 added to existing ones, 3 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Solventum Corp (SOLV) also commonly hold →

SOLV's price is not below its conservative value band. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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