Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Motorola Solutions Inc., current price multiples
| Motorola Solutions Inc. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Super Micro Computer Inc. | Technology Hardware & Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $398.58 | ||||||||||
| No. shares of common stock outstanding | 166,840,999 | ||||||||||
| Growth rate (g) | 380.70% | ||||||||||
| Earnings per share (EPS) | $10.24 | ||||||||||
| Next year expected EPS | $49.24 | ||||||||||
| Operating profit per share | $13.75 | ||||||||||
| Sales per share | $59.81 | ||||||||||
| Book value per share (BVPS) | $4.34 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 38.91 | 32.69 | 45.05 | 26.62 | 18.12 | 25.38 | 31.19 | 61.42 | |||
| Price to next year expected earnings | 8.09 | 15.86 | 36.00 | 23.43 | 6.67 | 21.73 | 17.59 | 48.55 | |||
| Price-earnings-growth (PEG) | 0.10 | 0.31 | 1.79 | 1.95 | 0.11 | 1.51 | 0.40 | 2.32 | |||
| Price to operating profit (P/OP) | 28.99 | 24.87 | 43.64 | 22.56 | 13.34 | 24.16 | 25.92 | 51.14 | |||
| Price to sales (P/S) | 6.66 | 7.84 | 18.35 | 5.11 | 0.87 | 1.95 | 6.44 | 12.52 | |||
| Price to book value (P/BV) | 91.85 | 53.81 | 12.86 | 6.04 | — | 5.40 | 31.80 | 19.66 | |||
Based on: 10-K (reporting date: 2023-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Motorola Solutions Inc., historical price multiples
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).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio exhibits a general downward trend from 36.24 in 2019 to 29.86 in 2021, indicating a possible improvement in earnings relative to the stock price during this period. However, in 2022, the ratio rises again to 32.81, suggesting a slight increase in valuation or a decrease in earnings. In 2023, the ratio marginally declines to 31.49, remaining below the 2019 level but above the 2021 low.
- Price to Operating Profit (P/OP) Ratio
- This ratio shows an overall upward movement from 19.9 in 2019 to a peak of 26.92 in 2022, reflecting increasing market valuation relative to operating profit. In 2023, there is a decrease to 23.46, which may indicate some correction in valuation or improvement in operating profit. The peak in 2022 suggests market expectations or possibly lower operating profit during that year.
- Price to Sales (P/S) Ratio
- The price to sales ratio consistently rises from 3.99 in 2019 to 5.39 in 2023. This steady increase indicates growing investor willingness to pay more per unit of sales, reflecting positive market sentiment or improved sales quality.
- Price to Book Value (P/BV) Ratio
- Data for price to book value ratio is missing for the years 2019 to 2021. In 2022, the ratio is extremely high at 385.48, followed by a significant reduction to 74.32 in 2023. The unusually high value in 2022 may imply a substantial accounting or valuation event, such as revaluation of assets or equity changes. The drop in 2023 still shows a high multiple, possibly indicating ongoing market premium relative to book value but moving towards normalization.
Price to Earnings (P/E)
Motorola Solutions Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 166,132,981 | 167,250,071 | 168,209,089 | 169,028,294 | 170,579,096 | |
| Selected Financial Data (US$) | ||||||
| Net earnings attributable to Motorola Solutions, Inc. (in millions) | 1,709) | 1,363) | 1,245) | 949) | 868) | |
| Earnings per share (EPS)2 | 10.29 | 8.15 | 7.40 | 5.61 | 5.09 | |
| Share price1, 3 | 323.90 | 267.36 | 221.00 | 181.07 | 184.41 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 31.49 | 32.81 | 29.86 | 32.25 | 36.24 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Apple Inc. | 28.33 | 24.82 | 25.96 | 32.24 | 20.00 | |
| Arista Networks Inc. | 39.77 | 32.05 | 47.57 | 37.42 | — | |
| Cisco Systems Inc. | 18.26 | 15.78 | 23.34 | 15.46 | 17.69 | |
| Dell Technologies Inc. | 11.94 | 7.31 | 20.88 | 6.21 | — | |
| Super Micro Computer Inc. | 21.10 | 12.72 | 16.15 | 17.04 | 15.81 | |
| P/E Ratio, Sector | ||||||
| Technology Hardware & Equipment | 27.04 | 23.16 | 25.71 | 28.10 | — | |
| P/E Ratio, Industry | ||||||
| Information Technology | 35.92 | 26.81 | 29.49 | 31.10 | — | |
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 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net earnings attributable to Motorola Solutions, Inc. ÷ No. shares of common stock outstanding
= 1,709,000,000 ÷ 166,132,981 = 10.29
3 Closing price as at the filing date of Motorola Solutions Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 323.90 ÷ 10.29 = 31.49
5 Click competitor name to see calculations.
The data reveals a positive trend in the company's financial performance over the period from 2019 to 2023. The share price exhibits a consistent upward trajectory, increasing from $184.41 at the end of 2019 to $323.90 by the end of 2023. This indicates a growing market valuation and investor confidence.
Earnings per share (EPS) also demonstrate a steady increase each year. Starting at $5.09 in 2019, EPS rises to $10.29 in 2023, more than doubling over the five-year span. This suggests the company has been able to improve its profitability and generate higher earnings for its shareholders annually.
The price-to-earnings (P/E) ratio shows some fluctuations throughout the period. Beginning at 36.24 in 2019, it declines to 29.86 in 2021, indicating that the share price growth was slightly outpaced by earnings growth, hence the valuation became more attractive. However, the P/E ratio increased again to 32.81 in 2022 before falling to 31.49 in 2023. These movements in the P/E ratio suggest that while the company’s earnings improved significantly, the market price adjusted with some variability in investor sentiment or expectations about future growth.
- Share Price
- Consistent and substantial growth over five years, rising from $184.41 to $323.90.
- Earnings per Share (EPS)
- Steady annual increase, with EPS more than doubling from $5.09 to $10.29, reflecting improved profitability.
- Price-to-Earnings (P/E) Ratio
- Fluctuated moderately between 29.86 and 36.24, indicating shifting market valuations relative to earnings growth.
Overall, the financial indicators suggest sustained business growth and improved earnings capacity, accompanied by a generally positive market valuation trend with some moderate variation in price premiums relative to earnings.
Price to Operating Profit (P/OP)
Motorola Solutions Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 166,132,981 | 167,250,071 | 168,209,089 | 169,028,294 | 170,579,096 | |
| Selected Financial Data (US$) | ||||||
| Operating earnings (in millions) | 2,294) | 1,661) | 1,667) | 1,383) | 1,581) | |
| Operating profit per share2 | 13.81 | 9.93 | 9.91 | 8.18 | 9.27 | |
| Share price1, 3 | 323.90 | 267.36 | 221.00 | 181.07 | 184.41 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 23.46 | 26.92 | 22.30 | 22.13 | 19.90 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Apple Inc. | 24.04 | 20.74 | 22.56 | 27.92 | 17.29 | |
| Arista Networks Inc. | 36.78 | 28.39 | 43.25 | 33.93 | — | |
| Cisco Systems Inc. | 15.32 | 13.35 | 19.26 | 12.73 | 14.46 | |
| Dell Technologies Inc. | 5.05 | 8.73 | 13.19 | 10.93 | — | |
| Super Micro Computer Inc. | 17.74 | 10.82 | 14.57 | 16.77 | 11.69 | |
| P/OP Ratio, Sector | ||||||
| Technology Hardware & Equipment | 22.47 | 19.66 | 21.99 | 24.94 | — | |
| P/OP Ratio, Industry | ||||||
| Information Technology | 29.91 | 22.75 | 26.04 | 26.91 | — | |
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 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 2,294,000,000 ÷ 166,132,981 = 13.81
3 Closing price as at the filing date of Motorola Solutions Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 323.90 ÷ 13.81 = 23.46
5 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals distinct trends in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio.
- Share Price (US$)
- There is a consistent upward trajectory in the share price from 2019 to 2023. The price increased from $184.41 in 2019 to $323.90 in 2023, representing a substantial rise over the five years. Notably, the pace of growth accelerated particularly after 2020, with the largest annual increment observed between 2022 and 2023.
- Operating Profit per Share (US$)
- The operating profit per share showed some variability early on, declining from $9.27 in 2019 to $8.18 in 2020 but rebounding thereafter. From 2020 onwards, a positive trend is apparent, culminating in a significant increase to $13.81 by 2023. This suggests an improvement in operational efficiency or profitability that strengthened markedly in the final reported year.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio started at 19.9 in 2019, increased steadily to peak at 26.92 in 2022, before declining to 23.46 in 2023. This pattern indicates that the market valuation relative to operating profit was rising through 2022, potentially reflecting heightened investor optimism or valuation expansion. The subsequent decrease in 2023 may imply a market correction or a realignment of price relative to enhanced operating earnings.
Overall, the data suggest that the company experienced increasing market valuation alongside improving operating profits, particularly from 2021 onwards. The rise in operating profit per share outpaced the increase in share price in 2023, as evidenced by the moderate drop in the P/OP ratio, indicating a possible shift toward valuation aligned more closely with fundamental earnings growth. This could signal investor recognition of sustainable profitability improvements.
Price to Sales (P/S)
Motorola Solutions Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 166,132,981 | 167,250,071 | 168,209,089 | 169,028,294 | 170,579,096 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 9,978) | 9,112) | 8,171) | 7,414) | 7,887) | |
| Sales per share2 | 60.06 | 54.48 | 48.58 | 43.86 | 46.24 | |
| Share price1, 3 | 323.90 | 267.36 | 221.00 | 181.07 | 184.41 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 5.39 | 4.91 | 4.55 | 4.13 | 3.99 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Apple Inc. | 7.17 | 6.28 | 6.72 | 6.74 | 4.25 | |
| Arista Networks Inc. | 14.17 | 9.89 | 13.57 | 10.24 | — | |
| Cisco Systems Inc. | 4.04 | 3.62 | 4.96 | 3.52 | 3.96 | |
| Dell Technologies Inc. | 0.28 | 0.40 | 0.72 | 0.31 | — | |
| Super Micro Computer Inc. | 1.90 | 0.70 | 0.51 | 0.43 | 0.32 | |
| P/S Ratio, Sector | ||||||
| Technology Hardware & Equipment | 5.59 | 4.94 | 5.45 | 4.93 | — | |
| P/S Ratio, Industry | ||||||
| Information Technology | 7.33 | 6.01 | 6.96 | 6.11 | — | |
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 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 9,978,000,000 ÷ 166,132,981 = 60.06
3 Closing price as at the filing date of Motorola Solutions Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 323.90 ÷ 60.06 = 5.39
5 Click competitor name to see calculations.
The analysis of the financial data over the periods from December 31, 2019, to December 31, 2023, indicates a consistent upward trend in key performance indicators of the company.
- Share Price
- The share price experienced initial slight variability with a minor decline from 184.41 US$ in 2019 to 181.07 US$ in 2020, followed by a steady and substantial increase each year thereafter, reaching 323.9 US$ by the end of 2023. This represents a strong appreciation in market value, more than doubling over the five-year span.
- Sales per Share
- Sales per share show a generally positive trend despite a slight drop from 46.24 US$ in 2019 to 43.86 US$ in 2020. Following this, sales per share increased consecutively each year, rising from 48.58 US$ in 2021 to 60.06 US$ in 2023. This steady growth suggests improving revenue generation on a per-share basis.
- Price to Sales (P/S) Ratio
- The P/S ratio also reflects an upward trajectory across the observed period. Starting at 3.99 in 2019, it showed gradual increments annually, reaching 5.39 in 2023. This rising ratio indicates that the stock's market valuation relative to its sales has increased, which may imply enhanced investor confidence or expectations of future growth.
Overall, the data presents a scenario of increasing market valuation supported by improving sales performance per share. The continuous increase in the P/S ratio suggests that investors are valuing the company at higher multiples, possibly due to perceived growth potential or strengthening business fundamentals. The temporary declines in 2020 might reflect broader market or economic impacts during that period, from which the company has demonstrated a strong recovery and growth trajectory.
Price to Book Value (P/BV)
Motorola Solutions Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 166,132,981 | 167,250,071 | 168,209,089 | 169,028,294 | 170,579,096 | |
| Selected Financial Data (US$) | ||||||
| Total Motorola Solutions, Inc. stockholders’ equity (deficit) (in millions) | 724) | 116) | (40) | (558) | (700) | |
| Book value per share (BVPS)2 | 4.36 | 0.69 | -0.24 | -3.30 | -4.10 | |
| Share price1, 3 | 323.90 | 267.36 | 221.00 | 181.07 | 184.41 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 74.32 | 385.48 | — | — | — | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Apple Inc. | 44.21 | 48.89 | 38.96 | 28.33 | 12.21 | |
| Arista Networks Inc. | 11.50 | 8.87 | 10.05 | 7.15 | — | |
| Cisco Systems Inc. | 5.19 | 4.69 | 5.99 | 4.57 | 6.12 | |
| Dell Technologies Inc. | — | — | 27.38 | — | — | |
| Super Micro Computer Inc. | 6.85 | 2.54 | 1.65 | 1.35 | 1.21 | |
| P/BV Ratio, Sector | ||||||
| Technology Hardware & Equipment | 27.57 | 28.94 | 25.15 | 19.59 | — | |
| P/BV Ratio, Industry | ||||||
| Information Technology | 11.50 | 10.49 | 12.51 | 11.10 | — | |
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 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Total Motorola Solutions, Inc. stockholders’ equity (deficit) ÷ No. shares of common stock outstanding
= 724,000,000 ÷ 166,132,981 = 4.36
3 Closing price as at the filing date of Motorola Solutions Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 323.90 ÷ 4.36 = 74.32
5 Click competitor name to see calculations.
The analysis of the financial data reveals several key trends for the periods under review.
- Share Price
- The share price exhibited a consistent upward trend over the five-year period. Starting at $184.41 at the end of 2019, the share price slightly decreased to $181.07 in 2020, possibly reflecting broader market conditions or company-specific factors. However, from 2021 onwards, there was a significant increase each year, reaching $221 in 2021, $267.36 in 2022, and $323.90 by the end of 2023. This represents an overall strong appreciation in market value, indicating growing investor confidence or improved company performance.
- Book Value Per Share (BVPS)
- The book value per share progressively improved from a negative position to a positive one. Initially, it was -$4.10 at the end of 2019, then gradually increased to -$3.30 in 2020 and nearly reached neutral at -$0.24 in 2021. Subsequently, BVPS turned positive, rising to $0.69 in 2022, and further to $4.36 in 2023. This positive shift suggests a strengthening of the company’s net asset position and improved financial health over the considered periods.
- Price-to-Book Value Ratio (P/BV)
- Data for the price-to-book value ratio is available for the years 2022 and 2023 only, showing a decline from 385.48 in 2022 to 74.32 in 2023. Although initially extremely high, indicating that the market price far exceeded the book value, the substantial decrease in 2023 implies either an increase in book value, a relative lowering of the share price, or both. Given the concurrent rise in both share price and BVPS, the decline in P/BV ratio likely reflects the rapid improvement in book value per share, thus moderating the valuation premium.
Overall, the financial data indicate a positive trajectory in market valuation and underlying net asset value, with a normalization of valuation multiples as book value strengthens. The company appears to be transitioning from a challenging financial position to a more robust standing, as evidenced by the shift from negative to positive book value per share and a considerable increase in share price over the period.