Last Price$427.4(2.9%)
Market Cap$72.0B
DCF value
$279.7
Overvalued (DCF value)
(34.5%)
Discount Rate
7.9%
Long-Term Growth Rate
4.0%
Stock quality
8/10
Great
MSI DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Dec'20 Actual | Dec'21 Actual | Dec'22 Actual | Dec'23 Actual | Dec'24 Actual | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Estimate | Dec'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 7,414.0 (6.0%) | 8,171.0 10.2% | 9,112.0 11.5% | 9,978.0 9.5% | 10,817.0 8.4% | 11,440.1 5.8% | 12,107.6 5.8% | 12,916.0 6.7% | 13,735.1 6.3% | 14,560.3 6.0% | 15,386.2 5.7% | 16,207.6 5.3% | 17,018.6 5.0% | 17,813.2 4.7% | 18,585.3 4.3% | 19,328.8 4.0% |
% margin | 1,383.0 18.7% | 1,667.0 20.4% | 1,661.0 18.2% | 2,294.0 23.0% | 2,688.0 24.8% | 2,278.0 19.9% | 2,410.9 19.9% | 2,571.9 19.9% | 2,735.0 19.9% | 2,899.3 19.9% | 3,063.8 19.9% | 3,227.3 19.9% | 3,388.8 19.9% | 3,547.1 19.9% | 3,700.8 19.9% | 3,848.8 19.9% |
NOPAT % effective tax rate | 1,122.7 15.1% | 1,342.6 16.4% | 1,498.7 16.4% | 1,832.2 18.4% | 2,156.4 19.9% | 1,827.5 16.0% | 1,934.1 16.0% | 2,063.3 16.0% | 2,194.1 16.0% | 2,325.9 16.0% | 2,457.9 16.0% | 2,589.1 16.0% | 2,718.6 16.0% | 2,845.6 16.0% | 2,968.9 16.0% | 3,087.7 16.0% |
% of revenue | 458.0 6.2% | 490.0 6.0% | 502.0 5.5% | 356.0 3.6% | 336.0 3.1% | 464.6 4.1% | 491.7 4.1% | 524.5 4.1% | 557.8 4.1% | 591.3 4.1% | 624.9 4.1% | 658.2 4.1% | 691.1 4.1% | 723.4 4.1% | 754.8 4.1% | 785.0 4.1% |
% of revenue | (217.0) (2.9%) | (243.0) (3.0%) | (256.0) (2.8%) | (253.0) (2.5%) | (257.0) (2.4%) | (294.4) (2.6%) | (311.6) (2.6%) | (332.4) (2.6%) | (353.5) (2.6%) | (374.7) (2.6%) | (396.0) (2.6%) | (417.1) (2.6%) | (438.0) (2.6%) | (458.4) (2.6%) | (478.3) (2.6%) | (497.5) (2.6%) |
% of revenue | 102.0 1.4% | (34.0) (0.4%) | (329.0) (3.6%) | (244.0) (2.4%) | 0.0 0.0% | (230.9) (2.0%) | (244.4) (2.0%) | (260.7) (2.0%) | (277.3) (2.0%) | (293.9) (2.0%) | (310.6) (2.0%) | (327.2) (2.0%) | (343.5) (2.0%) | (359.6) (2.0%) | (375.2) (2.0%) | (390.2) (2.0%) |
Free Cash Flow to Firm (FCFF) % of revenue | 1,465.7 19.8% | 1,555.6 19.0% | 1,415.7 15.5% | 1,691.2 16.9% | 2,235.4 20.7% | 1,766.7 15.4% | 1,869.8 15.4% | 1,994.6 15.4% | 2,121.1 15.4% | 2,248.6 15.4% | 2,376.1 15.4% | 2,503.0 15.4% | 2,628.2 15.4% | 2,750.9 15.4% | 2,870.2 15.4% | 2,985.0 15.4% |
% of FCFF used in calculation | 83.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.96 | 0.89 | 0.83 | 0.77 | 0.71 | 0.66 | 0.61 | 0.56 | 0.52 | 0.48 | ||||||
Discounted FCFF (DFCFF) | 1,411.7 | 1,667.5 | 1,648.2 | 1,623.9 | 1,595.0 | 1,561.6 | 1,524.1 | 1,482.7 | 1,437.9 | 1,390.0 |
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MSI DCF Value
DCF Value Calculation
as of Mar 03, 2025
Sum of DFCFF
% share of EV
15.3B
30.0%
Terminal Value (TV)
73.9B
Discounted TV
% share of EV
35.8B
70.0%
2,102.0M
Total Debt
6,102.0M
47.1B
Shares outstanding
168.5M
FX rate
1.0
279.7
34.5% overvalued
Equity Value Bridge
MSI DCF Financials
Revenue
$10.8B -> $18.6B
5.6% CAGR
Operating Income
$2,688.0M -> $3,700.8M
3.2% CAGR
FCFF
$2,235.4M -> $2,870.2M
2.5% CAGR
MSI DCF sensitivity
DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
7.0%
$293.0
$293.0
$293.0
$293.0
$293.0
7.5%
$267.0
$286.0
$286.0
$286.0
$286.0
7.9%
$241.0
$261.0
$280.0
$280.0
$280.0
8.5%
$213.0
$228.0
$246.0
$269.0
$272.0
9.0%
$193.0
$205.0
$219.0
$237.0
$258.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
7.0%
(31.0%)
(31.0%)
(31.0%)
(31.0%)
(31.0%)
7.5%
(38.0%)
(33.0%)
(33.0%)
(33.0%)
(33.0%)
7.9%
(44.0%)
(39.0%)
(34.0%)
(34.0%)
(34.0%)
8.5%
(50.0%)
(47.0%)
(42.0%)
(37.0%)
(36.0%)
9.0%
(55.0%)
(52.0%)
(49.0%)
(45.0%)
(40.0%)
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FAQ
What is Motorola Solutions, Inc. DCF (discounted cash flow) valuation?
As of Mar 03, 2025, Motorola Solutions, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $279.7. This suggests it may be overvalued by (34.5%) compared to its current price of around $427.4, using a WACC of 7.9% and growth rates of 4.0%.
What is Motorola Solutions, Inc. WACC?
As of Mar 03, 2025, Motorola Solutions, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 7.9%.
What is Motorola Solutions, Inc. Enterprise Value?
As of Mar 03, 2025, Motorola Solutions, Inc.'s Enterprise Value (EV) is approximately $51.1B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.