Motorola Solutions (MSI): Assessing Valuation After Latest Defense Tech Showcase at AUSA 2025

Motorola Solutions (MSI) spotlighted its latest defense technologies at AUSA 2025, debuting new secure connectivity systems, integrated command center tools, and advanced drone detection platforms developed alongside key industry partners. The demonstrations reflect a strong commitment to supporting modern military operations with data-driven solutions.

See our latest analysis for Motorola Solutions.

These product unveilings come as Motorola Solutions' stock shows solid long-term momentum, particularly after a three-year total shareholder return of 121%. Despite some recent turbulence, including a 5.3% dip in the 30-day share price return, the company’s innovation pipeline and resilient business suggest investors are still betting on its growth potential.

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Given the stock's stellar long-term returns but recent short-term decline, the real question is whether Motorola Solutions remains undervalued at current levels or if the market has already priced in future growth expectations. Could this be the right time to buy, or is caution warranted?

Most Popular Narrative: 9.4% Undervalued

Motorola Solutions’ widely followed narrative places a fair value nearly 10% above its last close, suggesting some upside remains at these levels. With the consensus price target outpacing recent price movement, all eyes are on the forecasts and assumptions behind this valuation.

The rapid adoption of integrated smart technologies, including AI-enhanced video security, spectrum monitoring, and advanced mesh networking through offerings like SVX and Silvus Mobile Ad Hoc Networks, is positioning Motorola to capitalize on the proliferation of smart cities and next-gen public safety applications. This is enabling high double-digit growth in software and services and supports higher-margin, recurring revenue streams.

Read the complete narrative.

Want to know what drives this bullish outlook? The heart of it lies in ambitious revenue expansion, fatter profit margins, and a valuation framework usually reserved for market disruptors. Which financial levers make analysts so confident? The answers could surprise you. Find out what is fueling this target behind the numbers.

Result: Fair Value of $503.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on government contracts and the rapid shift toward cloud services could disrupt Motorola Solutions' strong growth trajectory if headwinds persist.

Find out about the key risks to this Motorola Solutions narrative.

Another View: Multiples Tell a Different Story

Looking through the lens of earnings multiples, Motorola Solutions trades at 35.9 times earnings, which is notably higher than both the industry average of 30.7 and a fair ratio of 29.4. This premium indicates investors have high expectations, but also raises concerns about valuation risk if growth slows. What could trigger a swing in market sentiment?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Motorola Solutions Narrative

If you see the numbers differently or want to follow your personal analysis, it takes less than three minutes to craft your own view. Do it your way.

A great starting point for your Motorola Solutions research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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