Using the industry peer median P/E multiple (trailing + forward), Motorola Solutions, Inc. (MSI) has a fair value of $480.36 based on 6 comparable companies in the Communication Equipment industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Motorola Solutions, Inc.MSI | 75,880 | 35.4x | 33.0x |
| Western Digital CorporationWDC | 93,307 | 53.8x | 31.0x |
| Seagate Technology Holdings plcSTX | 83,285 | 56.4x | 29.5x |
| TE Connectivity Ltd.TEL | 60,046 | 33.2x | 23.8x |
| Fortinet, Inc.FTNT | 59,767 | 33.1x | 27.0x |
| Autodesk, Inc.ADSK | 50,905 | 45.9x | 23.5x |
| Workday, Inc.WDAY | 34,037 | 49.8x | 12.3x |
| Industry Median | 47.8x | 25.4x | |
| (*) Profit after tax | 2,154 | 2,301 | |
| Equity Value | 103,045 | 58,451 | |
| (/) Outstanding shares | 168 | 168 | |
| Fair Price | $613 | $348 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.