Motorola Solutions, Inc.

NYSE:MSI Stock Report

Market Cap: US$73.2b

Motorola Solutions Valuation

Is MSI 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 MSI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MSI ($438.1) is trading below our estimate of fair value ($470.43)

Significantly Below Fair Value: MSI 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 MSI?

Other financial metrics that can be useful for relative valuation.

MSI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.6x
Enterprise Value/EBITDA25.6x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MSI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34x
ANET Arista Networks
41.7x12.6%US$102.0b
CSCO Cisco Systems
18.9x4.9%US$194.3b
JNPR Juniper Networks
54.1x33.0%US$12.6b
21.2x10.1%US$11.7b
MSI Motorola Solutions
49.9x17.9%US$73.2b

Price-To-Earnings vs Peers: MSI is expensive based on its Price-To-Earnings Ratio (49.9x) compared to the peer average (34x).


Price to Earnings Ratio vs Industry

How does MSI's PE Ratio compare vs other companies in the US Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: MSI is expensive based on its Price-To-Earnings Ratio (49.9x) compared to the US Communications industry average (24.2x).


Price to Earnings Ratio vs Fair Ratio

What is MSI'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.

MSI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio50x
Fair PE Ratio33.7x

Price-To-Earnings vs Fair Ratio: MSI is expensive based on its Price-To-Earnings Ratio (49.9x) compared to the estimated Fair Price-To-Earnings Ratio (33.7x).


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 MSI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$438.10
US$432.79
-1.2%
11.5%US$510.00US$351.00n/a10
Sep ’25US$442.04
US$427.79
-3.2%
10.2%US$500.00US$351.00n/a10
Aug ’25US$398.58
US$383.58
-3.8%
8.8%US$440.00US$320.00n/a10
Jul ’25US$386.37
US$373.48
-3.3%
6.0%US$405.00US$320.00n/a10
Jun ’25US$364.91
US$369.48
+1.3%
6.7%US$405.00US$320.00n/a10
May ’25US$336.00
US$362.79
+8.0%
7.0%US$400.00US$312.00n/a11
Apr ’25US$353.59
US$359.15
+1.6%
6.2%US$400.00US$312.00n/a11
Mar ’25US$335.56
US$347.57
+3.6%
11.2%US$385.00US$237.00n/a10
Feb ’25US$325.15
US$328.00
+0.9%
12.2%US$370.00US$230.00n/a9
Jan ’25US$313.09
US$321.38
+2.6%
12.2%US$370.00US$230.00n/a8
Dec ’24US$325.32
US$312.00
-4.1%
11.1%US$348.00US$230.00n/a8
Nov ’24US$280.50
US$303.64
+8.2%
11.1%US$335.00US$223.00n/a8
Oct ’24US$272.24
US$302.06
+11.0%
11.3%US$335.00US$223.00n/a7
Sep ’24US$283.68
US$302.06
+6.5%
11.3%US$335.00US$223.00US$442.047
Aug ’24US$288.13
US$299.93
+4.1%
11.2%US$335.00US$223.00US$398.588
Jul ’24US$293.28
US$299.93
+2.3%
11.2%US$335.00US$223.00US$386.378
Jun ’24US$282.22
US$298.38
+5.7%
11.3%US$335.00US$223.00US$364.918
May ’24US$294.57
US$280.44
-4.8%
9.8%US$310.00US$216.00US$336.009
Apr ’24US$286.13
US$285.91
-0.08%
9.7%US$319.00US$216.00US$353.5911
Mar ’24US$263.35
US$286.67
+8.9%
9.3%US$319.00US$216.00US$335.5612
Feb ’24US$259.77
US$278.00
+7.0%
9.5%US$319.00US$210.00US$325.1512
Jan ’24US$257.71
US$280.50
+8.8%
9.6%US$319.00US$210.00US$313.0912
Dec ’23US$271.78
US$280.50
+3.2%
9.6%US$319.00US$210.00US$325.3212
Nov ’23US$242.89
US$279.25
+15.0%
10.6%US$311.00US$195.00US$280.5012
Oct ’23US$223.97
US$277.42
+23.9%
10.7%US$311.00US$195.00US$272.2412
Sep ’23US$244.17
US$276.18
+13.1%
11.8%US$311.00US$195.00US$283.6811

Analyst Forecast: Target price is lower than the current share price.


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