When Should You Buy Motorola Solutions, Inc. (NYSE:MSI)?

Motorola Solutions, Inc. (NYSE:MSI) had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of US$277 to US$297. However, is this the true valuation level of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Motorola Solutions’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Motorola Solutions

What's The Opportunity In Motorola Solutions?

According to my valuation model, Motorola Solutions seems to be fairly priced at around 19.62% above my intrinsic value, which means if you buy Motorola Solutions today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $247.13, there’s only an insignificant downside when the price falls to its real value. What's more, Motorola Solutions’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Motorola Solutions look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 47% over the next couple of years, the future seems bright for Motorola Solutions. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? MSI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on MSI, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Case in point: We've spotted 2 warning signs for Motorola Solutions you should be aware of.

If you are no longer interested in Motorola Solutions, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.