Price to Sales (P/S)
since 2005
Calculation
Motorola Solutions Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 15, 2024 | 5.39 | = | 323.90 | ÷ | 60.06 | 60.06 | = | 9,978 | ÷ | 166,132,981 | |
| Feb 16, 2023 | 4.91 | = | 267.36 | ÷ | 54.48 | 54.48 | = | 9,112 | ÷ | 167,250,071 | |
| Feb 16, 2022 | 4.55 | = | 221.00 | ÷ | 48.58 | 48.58 | = | 8,171 | ÷ | 168,209,089 | |
| Feb 12, 2021 | 4.13 | = | 181.07 | ÷ | 43.86 | 43.86 | = | 7,414 | ÷ | 169,028,294 | |
| Feb 14, 2020 | 3.99 | = | 184.41 | ÷ | 46.24 | 46.24 | = | 7,887 | ÷ | 170,579,096 | |
| Feb 15, 2019 | 3.09 | = | 138.63 | ÷ | 44.81 | 44.81 | = | 7,343 | ÷ | 163,871,288 | |
| Feb 16, 2018 | 2.68 | = | 105.91 | ÷ | 39.55 | 39.55 | = | 6,380 | ÷ | 161,307,525 | |
| Feb 21, 2017 | 2.19 | = | 80.15 | ÷ | 36.65 | 36.65 | = | 6,038 | ÷ | 164,744,310 | |
| Feb 23, 2016 | 2.17 | = | 70.78 | ÷ | 32.67 | 32.67 | = | 5,695 | ÷ | 174,337,851 | |
| Feb 13, 2015 | 2.58 | = | 69.91 | ÷ | 27.14 | 27.14 | = | 5,881 | ÷ | 216,679,202 | |
| Feb 13, 2014 | 1.92 | = | 65.67 | ÷ | 34.25 | 34.25 | = | 8,696 | ÷ | 253,865,362 | |
| Feb 12, 2013 | 1.93 | = | 60.83 | ÷ | 31.52 | 31.52 | = | 8,698 | ÷ | 275,983,331 | |
| Feb 15, 2012 | 1.87 | = | 48.21 | ÷ | 25.80 | 25.80 | = | 8,203 | ÷ | 317,969,760 | |
| Feb 18, 2011 | 0.68 | = | 39.01 | ÷ | 57.27 | 57.27 | = | 19,282 | ÷ | 336,710,130 | |
| Feb 16, 2010 | 0.76 | = | 50.82 | ÷ | 66.72 | 66.72 | = | 22,044 | ÷ | 330,411,295 | |
| Feb 26, 2009 | 0.27 | = | 25.34 | ÷ | 92.69 | 92.69 | = | 30,146 | ÷ | 325,223,706 | |
| Feb 28, 2008 | 0.64 | = | 72.80 | ÷ | 113.69 | 113.69 | = | 36,622 | ÷ | 322,112,365 | |
| Feb 28, 2007 | 1.03 | = | 129.64 | ÷ | 125.57 | 125.57 | = | 42,879 | ÷ | 341,486,647 | |
| Mar 2, 2006 | 1.51 | = | 155.33 | ÷ | 103.18 | 103.18 | = | 36,843 | ÷ | 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 between 2006 and 2024 is characterized by an initial period of severe valuation contraction followed by a sustained, long-term expansion in both share price and market multiples.
- Share Price Trends
- A sharp decline is observed from 2006 to 2009, with the share price falling from 155.33 to a minimum of 25.34. Following this trough, a consistent recovery trend began, accelerating significantly after 2017. This upward momentum culminated in a peak price of 323.90 by February 2024.
- Sales per Share Dynamics
- Sales per share showed significant volatility during the first several years, peaking at 125.57 in 2007 before declining to a low of 25.80 in 2012. Since 2012, there has been a steady and linear increase in sales per share, reaching 60.06 by 2024, though this remains below the levels seen prior to 2009.
- Price to Sales (P/S) Ratio Evolution
- The P/S ratio provides evidence of a substantial multiple expansion. Between 2006 and 2009, the ratio collapsed from 1.51 to 0.27, indicating a period of significant undervaluation or market distress. Starting in 2012, the ratio entered a period of aggressive growth, rising from 1.87 to 5.39 by 2024. This suggests that the market began assigning a progressively higher valuation to each dollar of revenue generated, reflecting increased investor confidence or a shift in the perceived quality of earnings.
The divergence between the recovery of sales per share and the growth of the P/S ratio indicates that the increase in share price was driven more by multiple expansion than by proportional revenue growth per share. While sales per share grew by approximately 132% from the 2012 low, the P/S ratio grew by approximately 188% over the same period.
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Comparison to Competitors
Motorola Solutions Inc., P/S, 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 | 5.39 | 7.17 | 14.17 | 4.04 | 0.28 | 2.01 | 1.90 |
| Feb 16, 2023 | 4.91 | 6.28 | 9.89 | 3.62 | 0.40 | 3.62 | 0.70 |
| Feb 16, 2022 | 4.55 | 6.72 | 13.57 | 4.96 | 0.72 | 3.61 | 0.51 |
| Feb 12, 2021 | 4.13 | 6.74 | 10.24 | 3.52 | 0.31 | 3.76 | 0.43 |
| Feb 14, 2020 | 3.99 | 4.25 | 7.09 | 3.96 | 0.47 | 2.65 | 0.32 |
| Feb 15, 2019 | 3.09 | 3.60 | 9.29 | 4.38 | — | 3.46 | 0.33 |
| Feb 16, 2018 | 2.68 | 3.86 | 11.20 | 3.28 | — | 3.44 | 0.40 |
| Feb 21, 2017 | 2.19 | 2.86 | 7.49 | 3.20 | — | 2.34 | 0.47 |
| Feb 23, 2016 | 2.17 | 2.85 | 5.52 | 2.71 | — | 1.20 | 0.65 |
| Feb 13, 2015 | 2.58 | 3.37 | 7.82 | 2.69 | — | — | 0.82 |
| Feb 13, 2014 | 1.92 | 2.76 | — | 2.66 | — | — | 0.48 |
| Feb 12, 2013 | 1.93 | 3.58 | — | 2.19 | — | — | 0.54 |
| Feb 15, 2012 | 1.87 | 3.44 | — | 2.03 | — | — | 0.54 |
| Feb 18, 2011 | 0.68 | 4.33 | — | 3.02 | — | — | 0.51 |
| Feb 16, 2010 | 0.76 | 4.87 | — | 3.70 | — | — | 0.55 |
| Feb 26, 2009 | 0.27 | 2.83 | — | 3.33 | — | — | 0.62 |
| Feb 28, 2008 | 0.64 | 5.99 | — | 5.59 | — | — | 0.61 |
| Feb 28, 2007 | 1.03 | 3.77 | — | 4.87 | — | — | — |
| Mar 2, 2006 | 1.51 | 4.34 | — | 4.60 | — | — | — |
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/S, long-term trends, comparison to sector (technology hardware & equipment)
| Motorola Solutions Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Feb 15, 2024 | 5.39 | 5.57 |
| Feb 16, 2023 | 4.91 | 4.94 |
| Feb 16, 2022 | 4.55 | 5.44 |
| Feb 12, 2021 | 4.13 | 4.92 |
| Feb 14, 2020 | 3.99 | 3.35 |
| Feb 15, 2019 | 3.09 | 3.72 |
| Feb 16, 2018 | 2.68 | 3.77 |
| Feb 21, 2017 | 2.19 | 2.92 |
| Feb 23, 2016 | 2.17 | 2.81 |
| Feb 13, 2015 | 2.58 | 3.23 |
| Feb 13, 2014 | 1.92 | 2.73 |
| Feb 12, 2013 | 1.93 | 3.25 |
| Feb 15, 2012 | 1.87 | 3.02 |
| Feb 18, 2011 | 0.68 | 3.81 |
| Feb 16, 2010 | 0.76 | 4.26 |
| Feb 26, 2009 | 0.27 | 3.08 |
| Feb 28, 2008 | 0.64 | 5.72 |
| Feb 28, 2007 | 1.03 | 4.43 |
| Mar 2, 2006 | 1.51 | 4.50 |
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/S, long-term trends, comparison to industry (information technology)
| Motorola Solutions Inc. | Information Technology | |
|---|---|---|
| Feb 15, 2024 | 5.39 | 7.31 |
| Feb 16, 2023 | 4.91 | 6.01 |
| Feb 16, 2022 | 4.55 | 6.98 |
| Feb 12, 2021 | 4.13 | 6.11 |
| Feb 14, 2020 | 3.99 | 4.62 |
| Feb 15, 2019 | 3.09 | 4.31 |
| Feb 16, 2018 | 2.68 | 4.18 |
| Feb 21, 2017 | 2.19 | 3.46 |
| Feb 23, 2016 | 2.17 | 3.03 |
| Feb 13, 2015 | 2.58 | 3.31 |
| Feb 13, 2014 | 1.92 | 2.85 |
| Feb 12, 2013 | 1.93 | 2.88 |
| Feb 15, 2012 | 1.87 | 2.84 |
| Feb 18, 2011 | 0.68 | 3.04 |
| Feb 16, 2010 | 0.76 | 3.11 |
| Feb 26, 2009 | 0.27 | 2.38 |
| Feb 28, 2008 | 0.64 | 5.73 |
| Feb 28, 2007 | 1.03 | 5.21 |
| Mar 2, 2006 | 1.51 | 5.62 |
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).