Price to Earnings (P/E)
since 2005
Calculation
Motorola Solutions Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings (loss) attributable to Motorola Solutions, Inc.1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 15, 2024 | 31.49 | = | 323.90 | ÷ | 10.29 | 10.29 | = | 1,709 | ÷ | 166,132,981 | |
| Feb 16, 2023 | 32.81 | = | 267.36 | ÷ | 8.15 | 8.15 | = | 1,363 | ÷ | 167,250,071 | |
| Feb 16, 2022 | 29.86 | = | 221.00 | ÷ | 7.40 | 7.40 | = | 1,245 | ÷ | 168,209,089 | |
| Feb 12, 2021 | 32.25 | = | 181.07 | ÷ | 5.61 | 5.61 | = | 949 | ÷ | 169,028,294 | |
| Feb 14, 2020 | 36.24 | = | 184.41 | ÷ | 5.09 | 5.09 | = | 868 | ÷ | 170,579,096 | |
| Feb 15, 2019 | 23.52 | = | 138.63 | ÷ | 5.89 | 5.89 | = | 966 | ÷ | 163,871,288 | |
| Feb 16, 2018 | — | = | 105.91 | ÷ | -0.96 | -0.96 | = | -155 | ÷ | 161,307,525 | |
| Feb 21, 2017 | 23.58 | = | 80.15 | ÷ | 3.40 | 3.40 | = | 560 | ÷ | 164,744,310 | |
| Feb 23, 2016 | 20.23 | = | 70.78 | ÷ | 3.50 | 3.50 | = | 610 | ÷ | 174,337,851 | |
| Feb 13, 2015 | 11.66 | = | 69.91 | ÷ | 6.00 | 6.00 | = | 1,299 | ÷ | 216,679,202 | |
| Feb 13, 2014 | 15.17 | = | 65.67 | ÷ | 4.33 | 4.33 | = | 1,099 | ÷ | 253,865,362 | |
| Feb 12, 2013 | 19.06 | = | 60.83 | ÷ | 3.19 | 3.19 | = | 881 | ÷ | 275,983,331 | |
| Feb 15, 2012 | 13.24 | = | 48.21 | ÷ | 3.64 | 3.64 | = | 1,158 | ÷ | 317,969,760 | |
| Feb 18, 2011 | 20.75 | = | 39.01 | ÷ | 1.88 | 1.88 | = | 633 | ÷ | 336,710,130 | |
| Feb 16, 2010 | — | = | 50.82 | ÷ | -0.15 | -0.15 | = | -51 | ÷ | 330,411,295 | |
| Feb 26, 2009 | — | = | 25.34 | ÷ | -13.05 | -13.05 | = | -4,244 | ÷ | 325,223,706 | |
| Feb 28, 2008 | — | = | 72.80 | ÷ | -0.15 | -0.15 | = | -49 | ÷ | 322,112,365 | |
| Feb 28, 2007 | 12.09 | = | 129.64 | ÷ | 10.72 | 10.72 | = | 3,661 | ÷ | 341,486,647 | |
| Mar 2, 2006 | 12.12 | = | 155.33 | ÷ | 12.82 | 12.82 | = | 4,578 | ÷ | 357,087,499 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Motorola Solutions Inc. Annual Report.
The financial trajectory since 2006 reveals a significant evolution in valuation, characterized by a transition from a period of high volatility and contraction to a sustained phase of growth and valuation expansion.
- Share Price Movement
- A substantial decline occurred between 2006 and 2009, with the share price falling from 155.33 to a low of 25.34. Following this trough, a consistent long-term recovery trend is observed, with the price ascending to 323.90 by February 2024.
- Earnings Per Share (EPS) Performance
- Earnings exhibited instability during the first decade, characterized by negative values from 2008 through 2010 and a subsequent dip into negative territory again in 2018. However, starting in 2019, EPS entered a period of steady growth, rising from 5.89 to 10.29 by 2024.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio demonstrates three distinct valuation regimes. From 2006 to 2007, the ratio remained stable near 12. Between 2011 and 2017, the ratio fluctuated between 11.66 and 23.58. Most recently, from 2019 to 2024, a significant valuation expansion is evident, with the ratio maintaining a higher plateau between 29.86 and 36.24.
The correlation between increasing EPS and an expanding P/E multiple since 2019 suggests that the market has not only responded to improved fundamental earnings but has also assigned a higher premium to those earnings, indicating increased investor confidence in future growth prospects.
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Comparison to Competitors
Motorola Solutions Inc., P/E, long-term trends, comparison to competitors
| Motorola Solutions Inc. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Feb 15, 2024 | 31.49 | 28.33 | 39.77 | 18.26 | 11.94 | — | 21.10 |
| Feb 16, 2023 | 32.81 | 24.82 | 32.05 | 15.78 | 7.31 | 31.19 | 12.72 |
| Feb 16, 2022 | 29.86 | 25.96 | 47.57 | 23.34 | 20.88 | 15.85 | 16.15 |
| Feb 12, 2021 | 32.25 | 32.24 | 37.42 | 15.46 | 6.21 | 46.62 | 17.04 |
| Feb 14, 2020 | 36.24 | 20.00 | 19.88 | 17.69 | — | — | 15.81 |
| Feb 15, 2019 | 23.52 | 16.07 | 60.93 | 1,964.84 | — | 17.86 | 24.38 |
| Feb 16, 2018 | — | 18.32 | 43.57 | 16.37 | — | — | 14.85 |
| Feb 21, 2017 | 23.58 | 13.49 | 45.89 | 14.69 | — | — | 14.46 |
| Feb 23, 2016 | 20.23 | 12.46 | 38.16 | 14.82 | — | — | 12.64 |
| Feb 13, 2015 | 11.66 | 15.60 | 52.60 | 16.14 | — | — | 22.18 |
| Feb 13, 2014 | 15.17 | 12.75 | — | 12.98 | — | — | 26.49 |
| Feb 12, 2013 | 19.06 | 13.42 | — | 12.55 | — | — | 18.42 |
| Feb 15, 2012 | 13.24 | 14.37 | — | 13.54 | — | — | 12.74 |
| Feb 18, 2011 | 20.75 | 20.16 | — | 15.56 | — | — | 13.73 |
| Feb 16, 2010 | — | 31.17 | — | 21.79 | — | — | 17.29 |
| Feb 26, 2009 | — | 19.00 | — | 16.35 | — | — | 13.14 |
| Feb 28, 2008 | — | 41.16 | — | 26.61 | — | — | 13.15 |
| Feb 28, 2007 | 12.09 | 36.65 | — | 24.85 | — | — | — |
| Mar 2, 2006 | 12.12 | 45.25 | — | 19.86 | — | — | — |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Technology Hardware & Equipment)
Motorola Solutions Inc., P/E, long-term trends, comparison to sector (technology hardware & equipment)
| Motorola Solutions Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Feb 15, 2024 | 31.49 | 27.10 |
| Feb 16, 2023 | 32.81 | 23.17 |
| Feb 16, 2022 | 29.86 | 25.67 |
| Feb 12, 2021 | 32.25 | 28.13 |
| Feb 14, 2020 | 36.24 | 21.01 |
| Feb 15, 2019 | 23.52 | 19.89 |
| Feb 16, 2018 | — | 18.27 |
| Feb 21, 2017 | 23.58 | 13.86 |
| Feb 23, 2016 | 20.23 | 12.86 |
| Feb 13, 2015 | 11.66 | 15.77 |
| Feb 13, 2014 | 15.17 | 12.81 |
| Feb 12, 2013 | 19.06 | 13.28 |
| Feb 15, 2012 | 13.24 | 14.20 |
| Feb 18, 2011 | 20.75 | 18.52 |
| Feb 16, 2010 | — | 26.30 |
| Feb 26, 2009 | — | 17.34 |
| Feb 28, 2008 | — | 31.28 |
| Feb 28, 2007 | 12.09 | 27.95 |
| Mar 2, 2006 | 12.12 | 24.65 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Motorola Solutions Inc., P/E, long-term trends, comparison to industry (information technology)
| Motorola Solutions Inc. | Information Technology | |
|---|---|---|
| Feb 15, 2024 | 31.49 | 36.13 |
| Feb 16, 2023 | 32.81 | 26.99 |
| Feb 16, 2022 | 29.86 | 29.75 |
| Feb 12, 2021 | 32.25 | 30.97 |
| Feb 14, 2020 | 36.24 | 23.40 |
| Feb 15, 2019 | 23.52 | 23.17 |
| Feb 16, 2018 | — | 23.55 |
| Feb 21, 2017 | 23.58 | 19.69 |
| Feb 23, 2016 | 20.23 | 16.54 |
| Feb 13, 2015 | 11.66 | 17.14 |
| Feb 13, 2014 | 15.17 | 14.15 |
| Feb 12, 2013 | 19.06 | 14.37 |
| Feb 15, 2012 | 13.24 | 13.71 |
| Feb 18, 2011 | 20.75 | 15.08 |
| Feb 16, 2010 | — | 21.50 |
| Feb 26, 2009 | — | 15.83 |
| Feb 28, 2008 | — | 36.48 |
| Feb 28, 2007 | 12.09 | 32.07 |
| Mar 2, 2006 | 12.12 | 33.76 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).