Motorola Solutions Valuation

Is MTLA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MTLA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MTLA (€456.5) is trading below our estimate of fair value (€471.13)

Significantly Below Fair Value: MTLA is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for MTLA?

Key metric: As MTLA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MTLA. This is calculated by dividing MTLA's market cap by their current earnings.
What is MTLA's PE Ratio?
PE Ratio51x
EarningsUS$1.56b
Market CapUS$79.72b

Price to Earnings Ratio vs Peers

How does MTLA's PE Ratio compare to its peers?

The above table shows the PE ratio for MTLA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.6x
FEW Funkwerk
9.7xn/a€159.6m
ANET Arista Networks
50.7x11.9%US$132.0b
CSCO Cisco Systems
24.8x8.1%US$233.9b
CEK CeoTronics
41.2x25.5%€53.1m
MTLA Motorola Solutions
51x17.4%€79.7b

Price-To-Earnings vs Peers: MTLA is expensive based on its Price-To-Earnings Ratio (51x) compared to the peer average (31.4x).


Price to Earnings Ratio vs Industry

How does MTLA's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MTLA 51.0xIndustry Avg. 32.4xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MTLA is expensive based on its Price-To-Earnings Ratio (51x) compared to the Global Communications industry average (34.3x).


Price to Earnings Ratio vs Fair Ratio

What is MTLA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MTLA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio51x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: MTLA is expensive based on its Price-To-Earnings Ratio (51x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MTLA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€456.50
€474.02
+3.8%
13.0%€572.70€335.03n/a10
Dec ’25€475.00
€474.02
-0.2%
13.0%€572.70€335.03n/a10
Nov ’25€411.70
€411.83
+0.03%
11.7%€479.86€323.90n/a10
Oct ’25€409.50
€391.97
-4.3%
11.5%€461.91€317.90n/a10
Sep ’25€399.50
€387.06
-3.1%
10.2%€452.40€317.58n/a10
Aug ’25€365.60
€354.82
-2.9%
8.8%€407.00€296.00n/a10
Jul ’25€362.40
€347.83
-4.0%
6.0%€377.18€298.02n/a10
Jun ’25€329.90
€343.88
+4.2%
6.7%€376.93€297.82n/a10
May ’25€323.30
€338.12
+4.6%
7.0%€372.80€290.78n/a11
Apr ’25€326.00
€332.36
+2.0%
6.2%€370.16€288.72n/a11
Mar ’25€305.80
€320.73
+4.9%
11.2%€355.28€218.70n/a10
Feb ’25€295.80
€301.07
+1.8%
12.2%€339.62€211.12n/a9
Jan ’25€280.70
€295.41
+5.2%
12.2%€340.10€211.42n/a8
Dec ’24€296.70
€284.36
-4.2%
11.1%€317.17€209.62€475.008
Nov ’24€262.80
€286.33
+9.0%
11.1%€315.91€210.29€411.708
Oct ’24€259.10
€278.04
+7.3%
11.3%€308.37€205.27€409.507
Sep ’24€261.50
€278.04
+6.3%
11.3%€308.37€205.27€399.507
Aug ’24€260.10
€278.69
+7.1%
11.2%€311.28€207.21€365.608
Jul ’24€266.90
€278.69
+4.4%
11.2%€311.28€207.21€362.408
Jun ’24€263.60
€279.19
+5.9%
11.3%€313.46€208.66€329.908
May ’24€265.90
€254.50
-4.3%
9.8%€281.33€196.02€323.309
Apr ’24€258.15
€269.35
+4.3%
9.7%€300.53€203.49€326.0011
Mar ’24€247.70
€270.44
+9.2%
9.3%€300.94€203.77€305.8012
Feb ’24€234.70
€258.40
+10.1%
9.5%€296.51€195.20€295.8012
Jan ’24€242.00
€271.38
+12.1%
9.6%€308.63€203.18€280.7012
Dec ’23€259.05
€271.38
+4.8%
9.6%€308.63€203.18€296.7012

Analyst Forecast: Target price is less than 20% higher than the current share price.


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