MSI Relative Valuation
MSI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MSI is overvalued; if below, it's undervalued.
Historical Valuation
Motorola Solutions Inc (MSI) is now in the Undervalued zone, suggesting that its current forward PE ratio of 23.87 is considered Undervalued compared with the five-year average of 25.51. The fair price of Motorola Solutions Inc (MSI) is between 411.57 to 507.95 according to relative valuation methord. Compared to the current price of 375.69 USD , Motorola Solutions Inc is Undervalued By 8.72%.
Relative Value
Fair Zone
411.57-507.95
Current Price：375.69
8.72%
Undervalued
23.60
PE
1Y
3Y
5Y
Trailing
Forward
17.35
EV/EBITDA
Motorola Solutions Inc. (MSI) has a current EV/EBITDA of 17.35. The 5-year average EV/EBITDA is 18.19. The thresholds are as follows: Strongly Undervalued below 13.36, Undervalued between 13.36 and 15.78, Fairly Valued between 20.61 and 15.78, Overvalued between 20.61 and 23.03, and Strongly Overvalued above 23.03. The current Forward EV/EBITDA of 17.35 falls within the Historic Trend Line -Fairly Valued range.
19.12
EV/EBIT
Motorola Solutions Inc. (MSI) has a current EV/EBIT of 19.12. The 5-year average EV/EBIT is 19.91. The thresholds are as follows: Strongly Undervalued below 14.83, Undervalued between 14.83 and 17.37, Fairly Valued between 22.45 and 17.37, Overvalued between 22.45 and 24.98, and Strongly Overvalued above 24.98. The current Forward EV/EBIT of 19.12 falls within the Historic Trend Line -Fairly Valued range.
5.06
PS
Motorola Solutions Inc. (MSI) has a current PS of 5.06. The 5-year average PS is 5.07. The thresholds are as follows: Strongly Undervalued below 3.17, Undervalued between 3.17 and 4.12, Fairly Valued between 6.02 and 4.12, Overvalued between 6.02 and 6.96, and Strongly Overvalued above 6.96. The current Forward PS of 5.06 falls within the Historic Trend Line -Fairly Valued range.
18.68
P/OCF
Motorola Solutions Inc. (MSI) has a current P/OCF of 18.68. The 5-year average P/OCF is 21.90. The thresholds are as follows: Strongly Undervalued below 14.69, Undervalued between 14.69 and 18.29, Fairly Valued between 25.51 and 18.29, Overvalued between 25.51 and 29.12, and Strongly Overvalued above 29.12. The current Forward P/OCF of 18.68 falls within the Historic Trend Line -Fairly Valued range.
20.25
P/FCF
Motorola Solutions Inc. (MSI) has a current P/FCF of 20.25. The 5-year average P/FCF is 25.10. The thresholds are as follows: Strongly Undervalued below 15.68, Undervalued between 15.68 and 20.39, Fairly Valued between 29.81 and 20.39, Overvalued between 29.81 and 34.52, and Strongly Overvalued above 34.52. The current Forward P/FCF of 20.25 falls within the Undervalued range.
Motorola Solutions Inc (MSI) has a current Price-to-Book (P/B) ratio of 26.91. Compared to its 3-year average P/B ratio of 111.59 , the current P/B ratio is approximately -75.88% higher. Relative to its 5-year average P/B ratio of -17.97, the current P/B ratio is about -249.77% higher. Motorola Solutions Inc (MSI) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.24%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.47% , the current FCF yield is about -100.00% lower.
26.61
P/B
Median3y
111.59
Median5y
-17.97
3.86
FCF Yield
Median3y
3.24
Median5y
3.47
Competitors Valuation Multiple
The average P/S ratio for MSI's competitors is 1.43, providing a benchmark for relative valuation. Motorola Solutions Inc Corp (MSI) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 7.85%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MSI decreased by 19.63% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.79B to 3.01B.
The secondary factor is the Margin Expansion, contributed -7.14%to the performance.
Overall, the performance of MSI in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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