Motorola Solutions Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net earnings attributable to Motorola Solutions, Inc.	1,709)	1,363)	1,245)	949)	868)
Earnings attributable to noncontrolling interests	5)	4)	5)	4)	3)
Net noncash charges	606)	785)	587)	583)	947)
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments	(276)	(329)	—)	77)	5)
Net cash provided by operating activities	2,044)	1,823)	1,837)	1,613)	1,823)
Interest paid, net of tax¹	187)	204)	167)	176)	192)
Capital expenditures	(253)	(256)	(243)	(217)	(248)
Proceeds from sales of property, plant and equipment	—)	—)	6)	56)	7)
Free cash flow to the firm (FCFF)	1,978)	1,771)	1,767)	1,628)	1,774)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Motorola Solutions Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Motorola Solutions Inc. FCFF increased from 2021 to 2022 and from 2022 to 2023.

Motorola Solutions Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	20.10%	9.80%	19.50%	18.80%	13.00%
Interest Paid, Net of Tax
Interest paid, before tax	234)	226)	207)	217)	221)
Less: Interest paid, tax²	47)	22)	40)	41)	29)
Interest paid, net of tax	187)	204)	167)	176)	192)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Interest paid, tax = Interest paid × EITR
= 234 × 20.10% = 47

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Motorola Solutions Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	70,827)
Free cash flow to the firm (FCFF)	1,978)
Valuation Ratio
EV/FCFF	35.81
Benchmarks
EV/FCFF, Competitors¹
Apple Inc.	35.74
Arista Networks Inc.	68.57
Cisco Systems Inc.	23.00
Super Micro Computer Inc.	28.94
EV/FCFF, Sector
Technology Hardware & Equipment	34.20
EV/FCFF, Industry
Information Technology	54.75

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Motorola Solutions Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	58,138)	49,420)	41,010)	34,544)	35,601)
Free cash flow to the firm (FCFF)²	1,978)	1,771)	1,767)	1,628)	1,774)
Valuation Ratio
EV/FCFF³	29.39	27.91	23.21	21.22	20.07
Benchmarks
EV/FCFF, Competitors⁴
Apple Inc.	27.21	22.40	26.45	24.67	18.01
Arista Networks Inc.	39.01	89.98	38.47	29.00	15.17
Cisco Systems Inc.	10.98	13.55	15.50	10.47	12.58
Super Micro Computer Inc.	21.06	—	25.04	—	3.79
EV/FCFF, Sector
Technology Hardware & Equipment	24.85	21.85	25.07	22.39	16.86
EV/FCFF, Industry
Information Technology	34.45	27.35	28.28	24.52	19.89

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 58,138 ÷ 1,978 = 29.39

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Motorola Solutions Inc. EV/FCFF ratio increased from 2021 to 2022 and from 2022 to 2023.

Motorola Solutions Inc. (NYSE:MSI)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical