Using the PEG framework with analyst consensus forward EPS growth of 15.9% plus 1.0% dividend yield, Motorola Solutions, Inc. has a fair value of $266.73 based on NTM EPS (FY2026) of $16.79. The current PEG ratio is 1.69.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.9% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%) | 15.9% |
| Fair P/E | 15.9x |
| NTM EPS (FY2026) | $16.79 |
| Fair Value | $266.73 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $12.76 | — | — |
| FY2026E | $16.79 | +31.5% | 9 |
| FY2027E | $18.16 | +8.2% | 10 |
| FY2028E | $19.37 | +6.6% | 4 |
3Y Forward EPS CAGR: 14.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.2B | $7.17 | — |
| FY2022 | $1.4B | $7.93 | +10.6% |
| FY2023 | $1.7B | $9.93 | +25.2% |
| FY2024 | $1.6B | $9.23 | -7.0% |
| FY2025 | $2.2B | $12.76 | +38.2% |
4Y Historical EPS CAGR: 15.5%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.