Latest Ratios: P/E Ratio 33.2x · EV/EBITDA 23.3x · ROE 103.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $70.4B | $64.4B | $78.9B | $53.9B | $44.3B | $47.2B | $29.6B | $28.3B | $19.8B | $14.7B | $14.3B |
| Enterprise Value | $79.0B | $73.0B | $83.4B | $58.7B | $49.5B | $51.4B | $34.1B | $33.0B | $23.8B | $18.0B | $17.7B |
| P/E Ratio → | 33.25 | 30.04 | 50.08 | 31.53 | 32.50 | 37.89 | 31.20 | 32.62 | 20.47 | — | 25.58 |
| P/S Ratio | 6.03 | 5.52 | 7.30 | 5.40 | 4.86 | 5.77 | 3.99 | 3.59 | 2.69 | 2.31 | 2.38 |
| P/B Ratio | 29.38 | 26.55 | 45.93 | 72.91 | 338.17 | — | — | — | — | — | — |
| P/FCF | 27.38 | 25.05 | 37.00 | 30.09 | 28.27 | 29.59 | 21.21 | 17.97 | 22.54 | 13.15 | 16.05 |
| P/OCF | 24.82 | 22.71 | 33.02 | 26.36 | 24.30 | 25.68 | 18.36 | 15.52 | 18.41 | 10.93 | 12.32 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.25 | 7.71 | 5.89 | 5.44 | 6.29 | 4.59 | 4.19 | 3.25 | 2.82 | 2.93 |
| EV / EBITDA | 23.34 | 21.57 | 27.58 | 22.16 | 23.57 | 24.43 | 19.00 | 16.73 | 14.77 | 11.05 | 13.19 |
| EV / EBIT | 26.92 | 23.76 | 36.79 | 24.52 | 28.22 | 29.10 | 24.21 | 26.69 | 17.77 | 13.93 | 16.57 |
| EV / FCF | — | 28.40 | 39.08 | 32.79 | 31.61 | 32.26 | 24.40 | 20.98 | 27.16 | 16.07 | 19.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 50.2% | 50.2% | 51.0% | 49.8% | 46.4% | 49.4% | 48.7% | 49.8% | 47.4% | 47.4% | 47.5% |
| Operating Margin | 25.1% | 25.1% | 24.8% | 23.0% | 18.2% | 20.4% | 18.7% | 20.0% | 17.1% | 20.1% | 17.4% |
| Net Profit Margin | 18.4% | 18.4% | 14.6% | 17.1% | 15.0% | 15.2% | 12.8% | 11.0% | 13.2% | -2.4% | 9.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 103.9% | 103.9% | 128.3% | 392.9% | 2524.1% | — | — | — | — | — | — |
| ROA | 12.7% | 12.7% | 11.3% | 13.1% | 10.9% | 10.8% | 8.8% | 8.7% | 11.0% | -1.9% | 6.7% |
| ROIC | 25.6% | 25.6% | 34.3% | 31.5% | 26.0% | 30.7% | 26.0% | 34.6% | 43.4% | 48.7% | 33.2% |
| ROCE | 25.7% | 25.7% | 31.4% | 28.9% | 20.3% | 21.5% | 19.0% | 23.4% | 21.7% | 23.2% | 17.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 4.02 | 4.02 | 3.81 | 8.86 | 50.01 | — | — | — | — | — | — |
| Debt / EBITDA | 2.88 | 2.88 | 2.17 | 2.47 | 3.12 | 2.91 | 3.18 | 2.91 | 3.29 | 2.75 | 3.27 |
| Net Debt / Equity | — | 3.54 | 2.59 | 6.56 | 39.89 | — | — | — | — | — | — |
| Net Debt / EBITDA | 2.54 | 2.54 | 1.47 | 1.83 | 2.49 | 2.02 | 2.48 | 2.40 | 2.52 | 2.01 | 2.51 |
| Debt / FCF | — | 3.34 | 2.08 | 2.71 | 3.34 | 2.67 | 3.19 | 3.01 | 4.63 | 2.92 | 3.77 |
| Interest Coverage | 8.42 | 8.42 | 7.68 | 9.62 | 7.31 | 8.22 | 6.04 | 5.22 | 5.59 | 6.00 | 4.75 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.04 | 1.04 | 1.28 | 1.00 | 1.15 | 1.33 | 1.24 | 1.21 | 1.38 | 1.35 | 1.30 |
| Quick Ratio | 0.87 | 0.87 | 1.13 | 0.85 | 0.92 | 1.14 | 1.09 | 1.08 | 1.26 | 1.24 | 1.20 |
| Cash Ratio | 0.19 | 0.19 | 0.42 | 0.30 | 0.29 | 0.46 | 0.36 | 0.29 | 0.40 | 0.41 | 0.39 |
| Asset Turnover | — | 0.60 | 0.74 | 0.75 | 0.71 | 0.67 | 0.68 | 0.74 | 0.78 | 0.78 | 0.72 |
| Inventory Turnover | 5.92 | 5.92 | 6.93 | 6.06 | 4.63 | 5.24 | 7.49 | 8.85 | 10.85 | 10.26 | 11.61 |
| Days Sales Outstanding | — | 117.92 | 107.37 | 102.86 | 99.82 | 111.27 | 114.36 | 113.75 | 114.58 | 118.54 | 114.01 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.1% | 0.8% | 1.1% | 1.2% | 1.0% | 1.5% | 1.3% | 1.7% | 2.1% | 2.0% |
| Payout Ratio | 33.8% | 33.8% | 41.5% | 34.5% | 38.9% | 38.7% | 45.9% | 43.7% | 34.9% | — | 50.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 3.3% | 2.0% | 3.2% | 3.1% | 2.6% | 3.2% | 3.1% | 4.9% | — | 3.9% |
| FCF Yield | 3.7% | 4.0% | 2.7% | 3.3% | 3.5% | 3.4% | 4.7% | 5.6% | 4.4% | 7.6% | 6.2% |
| Buyback Yield | 1.6% | 1.8% | 0.3% | 1.5% | 1.9% | 1.1% | 2.1% | 1.1% | 0.7% | 3.3% | 5.9% |
| Total Shareholder Yield | 2.7% | 2.9% | 1.1% | 2.6% | 3.1% | 2.1% | 3.5% | 2.5% | 2.4% | 5.4% | 7.8% |
| Shares Outstanding | — | $168M | $171M | $172M | $172M | $174M | $174M | $176M | $172M | $163M | $173M |
High Goodwill and Leverage
Based on current market data, MSI trades at a forward P/E of 23.76, suggesting that investors are pricing the company as a high-growth software entity rather than a traditional hardware manufacturer, despite the inherent cyclicality of its large-scale government project deployments and municipal budget dependencies.
The current valuation premium over pure-play hardware peers appears to hinge on the market's belief that MSI is successfully transitioning into a 'Public Safety OS' provider. However, the PEG ratio of 1.70 warrants caution, as it implies that current growth expectations may be aggressive if the integration of AI-driven analytics fails to offset the potential margin compression in legacy hardware segments.
According to recent financial disclosures, MSI's ROIC has trended downward from 9.6% in 2024Q4 to 4.0% in 2026Q1, indicating that the company's aggressive acquisition strategy is currently failing to generate returns that exceed the cost of capital, potentially signaling a period of inefficient capital deployment.
The divergence between ROE and ROIC suggests that the company's high leverage is artificially inflating equity returns while the underlying operational efficiency of invested capital is deteriorating. Investors should monitor whether this trend is a temporary byproduct of recent M&A integration or a structural decline in the returns generated by the core LMR business.
As reported in quarterly filings, MSI's cash conversion cycle has fluctuated significantly, reaching 123 days in 2026Q1, which highlights the company's reliance on long-term project billing cycles and the inherent difficulty in managing working capital within a mission-critical, government-contracted business model.
The increase in DSO to 126 days suggests that the company is experiencing longer collection periods, which may be a function of the complex milestone-based revenue recognition inherent in large-scale system integrations. This trend warrants further investigation to determine if it reflects a shift in customer payment terms or merely the lumpy nature of public safety contract execution.
Based on reported figures, MSI's debt-to-EBITDA ratio has remained elevated, hovering near 12.75 in 2026Q1, which indicates that the company's reliance on debt to fund share repurchases and strategic acquisitions has left it with a significantly constrained balance sheet compared to historical norms.
While the company's essential role in public safety provides a degree of revenue stability, the high debt load leaves little room for error in a rising interest rate environment. The current interest coverage ratio of 5.36 suggests that while debt service remains manageable, any significant contraction in operating margins could rapidly increase the risk profile of the company's capital structure.
The most commonly misapplied metric for MSI is the standard P/E ratio, which fails to account for the significant non-cash impact of stock-based compensation and the lumpy nature of project-based revenue recognition that frequently distorts quarterly earnings quality.
Analysts should instead focus on EV/EBITDA and free cash flow yield, as these metrics better capture the company's true earning power and the cash-generative nature of its long-term service contracts. Relying on P/E ignores the underlying capital intensity and the aggressive share buyback programs that artificially inflate EPS growth at the expense of long-term balance sheet health.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MSI stock.
Motorola Solutions, Inc.'s current P/E ratio is 33.2x. The historical average is 24.4x. This places it at the 87th percentile of its historical range.
Motorola Solutions, Inc.'s current EV/EBITDA is 23.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.1x.
Motorola Solutions, Inc.'s return on equity (ROE) is 103.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 34.9%.
Based on historical data, Motorola Solutions, Inc. is trading at a P/E of 33.2x. This is at the 87th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Motorola Solutions, Inc.'s current dividend yield is 1.02% with a payout ratio of 33.8%.
Motorola Solutions, Inc. has 50.2% gross margin and 25.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Motorola Solutions, Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.