Motorola Solutions, Inc. (MSI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-19.5%

$393.01

vs $488.50 price

Levered DCF

$381.98

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.36

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	29.65×	48.91×	30.61×	31.66×	36.92×	30.48×	30.93×	20.47×
P/B	26.43×	45.27×	72.22×	372.12×	-1,149.29×	-51.81×	-38.35×	-15.29×
P/S	5.45×	7.13×	5.24×	4.74×	5.63×	3.9×	3.4×	2.69×
EV / EBITDA	20.67×	31.33×	20.77×	22.05×	22.78×	18.37×	19.36×	14.01×
Gross margin	50.2%	51.0%	49.8%	46.4%	49.4%	48.7%	49.8%	47.4%
Operating margin	25.1%	24.8%	23.0%	18.2%	20.4%	18.7%	20.0%	17.1%
Net margin	18.4%	14.6%	17.1%	15.0%	15.2%	12.8%	11.0%	13.2%
Current ratio	1.04×	1.28×	1×	1.15×	1.33×	1.24×	1.21×	1.38×
Debt / equity	4.05×	3.85×	9.05×	56.47×	-153.25×	-10.22×	-8.21×	-4.11×
Interest coverage	8.04×	9.11×	9.21×	6.92×	7.75×	5.94×	6.67×	5.23×
Dividend yield	1.1%	0.8%	1.1%	1.2%	1.0%	1.5%	1.4%	1.7%
Payout ratio	33.8%	41.5%	34.5%	38.9%	38.7%	45.9%	43.7%	34.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	89.4%	92.6%	236.0%	1175.0%	-3112.5%	-170.1%	-124.0%	-74.7%
Return on invested capital	15.9%	21.6%	20.3%	17.9%	16.3%	14.9%	18.7%	17.4%
Return on assets	11.1%	10.8%	12.8%	10.6%	10.2%	8.7%	8.2%	10.3%
Free cash flow yield	4.0%	2.8%	3.4%	3.6%	3.5%	4.8%	5.9%	4.4%
Earnings yield	3.4%	2.0%	3.3%	3.2%	2.7%	3.3%	3.2%	4.9%
Enterprise value	$72.3B	$81.5B	$57.1B	$48.4B	$50.2B	$33.4B	$31.6B	$23.8B
Net debt / EBITDA	2.46×	1.71×	1.76×	2.38×	1.93×	2.45×	2.91×	2.39×
Cash conversion cycle (days)	96	79	89	88	85	104	83	92