Latest Ratios: P/E Ratio 41.3x · EV/EBITDA 25.8x · ROE 103.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $85.4B | $64.4B | $78.9B | $53.9B | $44.3B | $47.2B | $29.6B | $28.3B | $19.8B | $14.7B | $14.3B |
| Enterprise Value | $94.0B | $73.0B | $83.4B | $58.7B | $49.5B | $51.4B | $34.1B | $33.0B | $23.8B | $18.0B | $17.7B |
| P/E Ratio → | 41.33 | 30.04 | 50.08 | 31.53 | 32.50 | 37.89 | 31.20 | 32.62 | 20.47 | — | 25.58 |
| P/S Ratio | 6.78 | 5.52 | 7.30 | 5.40 | 4.86 | 5.77 | 3.99 | 3.59 | 2.69 | 2.31 | 2.38 |
| P/B Ratio | 35.64 | 26.55 | 45.93 | 72.91 | 338.17 | — | — | — | — | — | — |
| P/FCF | 33.70 | 25.05 | 37.00 | 30.09 | 28.27 | 29.59 | 21.21 | 17.97 | 22.54 | 13.15 | 16.05 |
| P/OCF | 30.10 | 22.71 | 33.02 | 26.36 | 24.30 | 25.68 | 18.36 | 15.52 | 18.41 | 10.93 | 12.32 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.25 | 7.71 | 5.89 | 5.44 | 6.29 | 4.59 | 4.19 | 3.25 | 2.82 | 2.93 |
| EV / EBITDA | 25.80 | 21.74 | 27.58 | 22.16 | 23.57 | 24.43 | 19.00 | 16.73 | 14.77 | 11.05 | 13.19 |
| EV / EBIT | 32.03 | 23.76 | 36.79 | 24.52 | 28.22 | 29.10 | 24.21 | 26.69 | 17.77 | 13.93 | 16.57 |
| EV / FCF | — | 28.40 | 39.08 | 32.79 | 31.61 | 32.26 | 24.40 | 20.98 | 27.16 | 16.07 | 19.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 50.2% | 50.2% | 51.0% | 49.8% | 46.4% | 49.4% | 48.7% | 49.8% | 47.4% | 47.4% | 47.5% |
| Operating Margin | 25.1% | 25.1% | 24.8% | 23.0% | 18.2% | 20.4% | 18.7% | 20.0% | 17.1% | 20.1% | 17.4% |
| Net Profit Margin | 18.4% | 18.4% | 14.6% | 17.1% | 15.0% | 15.2% | 12.8% | 11.0% | 13.2% | -2.4% | 9.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 103.9% | 103.9% | 128.3% | 392.9% | 2524.1% | — | — | — | — | — | — |
| ROA | 12.7% | 12.7% | 11.3% | 13.1% | 10.9% | 10.8% | 8.8% | 8.7% | 11.0% | -1.9% | 6.7% |
| ROIC | 25.6% | 25.6% | 34.3% | 31.5% | 26.0% | 30.7% | 26.0% | 34.6% | 43.4% | 48.7% | 33.2% |
| ROCE | 25.7% | 25.7% | 31.4% | 28.9% | 20.3% | 21.5% | 19.0% | 23.4% | 21.7% | 23.2% | 17.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 4.02 | 4.02 | 3.81 | 8.86 | 50.01 | — | — | — | — | — | — |
| Debt / EBITDA | 2.91 | 2.91 | 2.17 | 2.47 | 3.12 | 2.91 | 3.18 | 2.91 | 3.29 | 2.75 | 3.27 |
| Net Debt / Equity | — | 3.54 | 2.59 | 6.56 | 39.89 | — | — | — | — | — | — |
| Net Debt / EBITDA | 2.56 | 2.56 | 1.47 | 1.83 | 2.49 | 2.02 | 2.48 | 2.40 | 2.52 | 2.01 | 2.51 |
| Debt / FCF | — | 3.34 | 2.08 | 2.71 | 3.34 | 2.67 | 3.19 | 3.01 | 4.63 | 2.92 | 3.77 |
| Interest Coverage | 8.42 | 8.42 | 7.68 | 9.62 | 7.31 | 8.22 | 6.04 | 5.22 | 5.59 | 6.00 | 4.75 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.04 | 1.04 | 1.28 | 1.00 | 1.15 | 1.33 | 1.24 | 1.21 | 1.38 | 1.35 | 1.30 |
| Quick Ratio | 0.87 | 0.87 | 1.13 | 0.85 | 0.92 | 1.14 | 1.09 | 1.08 | 1.26 | 1.24 | 1.20 |
| Cash Ratio | 0.19 | 0.19 | 0.42 | 0.30 | 0.29 | 0.46 | 0.36 | 0.29 | 0.40 | 0.41 | 0.39 |
| Asset Turnover | — | 0.60 | 0.74 | 0.75 | 0.71 | 0.67 | 0.68 | 0.74 | 0.78 | 0.78 | 0.72 |
| Inventory Turnover | 5.92 | 5.92 | 6.93 | 6.06 | 4.63 | 5.24 | 7.49 | 8.85 | 10.85 | 10.26 | 11.61 |
| Days Sales Outstanding | — | 117.92 | 107.37 | 102.86 | 99.82 | 111.27 | 114.36 | 113.75 | 114.58 | 118.54 | 114.01 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.1% | 0.8% | 1.1% | 1.2% | 1.0% | 1.5% | 1.3% | 1.7% | 2.1% | 2.0% |
| Payout Ratio | 33.8% | 33.8% | 41.5% | 34.5% | 38.9% | 38.7% | 45.9% | 43.7% | 34.9% | — | 50.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 3.3% | 2.0% | 3.2% | 3.1% | 2.6% | 3.2% | 3.1% | 4.9% | — | 3.9% |
| FCF Yield | 3.0% | 4.0% | 2.7% | 3.3% | 3.5% | 3.4% | 4.7% | 5.6% | 4.4% | 7.6% | 6.2% |
| Buyback Yield | 1.4% | 1.8% | 0.3% | 1.5% | 1.9% | 1.1% | 2.1% | 1.1% | 0.7% | 3.3% | 5.9% |
| Total Shareholder Yield | 2.2% | 2.9% | 1.1% | 2.6% | 3.1% | 2.1% | 3.5% | 2.5% | 2.4% | 5.4% | 7.8% |
| Shares Outstanding | — | $168M | $171M | $172M | $172M | $174M | $174M | $176M | $172M | $163M | $173M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MSI stock.
Motorola Solutions, Inc.'s current P/E ratio is 41.3x. The historical average is 24.4x. This places it at the 91th percentile of its historical range.
Motorola Solutions, Inc.'s current EV/EBITDA is 25.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.1x.
Motorola Solutions, Inc.'s return on equity (ROE) is 103.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 34.9%.
Based on historical data, Motorola Solutions, Inc. is trading at a P/E of 41.3x. This is at the 91th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Motorola Solutions, Inc.'s current dividend yield is 0.84% with a payout ratio of 33.8%.
Motorola Solutions, Inc. has 50.2% gross margin and 25.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Motorola Solutions, Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage figures unverified
Metrics are mathematically derived from official filings.
Premium Multiples Pricing Software Growth Narrative
MSI trades at 41.3x trailing earnings and 25.8x EV/EBITDA, a premium to JCI and SAIC that, based on reported figures, implies the market is underwriting sustained double-digit growth and a successful software mix shift rather than current earnings alone.
The forward P/E of 29.1x compresses sharply from the trailing 41.3x, suggesting that consensus expects earnings to recover from the depressed third-quarter EPS of $3.06, though the gap warrants monitoring. The PEG of 2.23 sits above the 1.0 to 1.9 range of DGII and JCI, indicating investors are paying a premium that may only be justified if revenue acceleration converts into earnings. Relative to its own trajectory and peers such as AXON, the multiple appears to price MSI as a hybrid of defense hardware and SaaS, a framing that remains an interpretation rather than a confirmed outcome.
Gross Margin Stable While Net Margin Erodes
Reported gross margin held near 52.4% in 2026Q3 versus roughly 49% to 51% a year earlier, yet net margin fell to 15.2% from 19.2%, suggesting that operating and below-the-line costs are absorbing the gains at the gross level.
The operating margin decline from 26.0% to 23.0% year over year, alongside R&D growth of roughly 16% against revenue growth of about 12%, suggests reinvestment is compressing the earnings base in the near term. This pattern could reflect a deliberate investment cycle in software and analytics, though it may also indicate structural cost pressure that has not yet shown up in pricing. Investors should monitor whether operating margin stabilizes near 23% or continues to fall, as the answer determines whether current EPS levels represent a floor or a trough.
Elevated Leverage Relies on Equity Rebuild
Reported debt-to-equity fell from 8.39 in 2024Q2 to 3.46 in 2026Q3, but with total debt near $10.7B and cash of only $774M, the ratio improvement appears driven by equity recovery rather than meaningful debt reduction.
Interest coverage of 6.8x and debt-to-EBITDA of 11.5x are comparatively comfortable on coverage but elevated on the debt-to-EBITDA measure, indicating debt service remains manageable while overall leverage is high. Because the reported D/E of 4.02 in 2025Q4 conflicts with historically elevated figures, this series warrants verification before solvency conclusions are drawn. Refinancing risk cannot be assessed from the supplied data alone, and the analysis should treat coverage as the more reliable near-term signal.
Thin Liquidity Buffer Against Debt Load
Reported current ratio of 1.10 and quick ratio of 0.85 in 2026Q3, against cash of $774M, suggest limited liquidity headroom relative to roughly $10.7B of total debt, though the quick ratio sits below 1.0 without inventory-heavy dependence being the primary cause.
A quick ratio below 1.0 indicates that current liabilities depend on receivables and inventory conversion, which for a government-facing business with lumpy billing cycles introduces timing sensitivity. Under severe stress, a delay in municipal payments or project milestones could pressure the current ratio quickly, though the data does not establish that this scenario is likely. The position appears adequate for ongoing operations but offers limited cushion for an unexpected shock.
Asset Turnover Hides Working Capital Volatility
Quarterly cash conversion cycle swung between 78 and 117 days over the ten reported quarters, and days sales outstanding ranged from 68 to 126, suggesting that a headline CCC average would obscure substantial timing-driven variability in working capital.
Reported asset turnover of 0.14 to 0.18 is low in absolute terms, which is typical for a business carrying large goodwill from acquisitions rather than a sign of operational inefficiency in itself. The most commonly misapplied metric here is ROIC, since goodwill that grew from $3.4B to $7.7B inflates invested capital and depresses the return figure, so tangible-capital returns would give a more accurate read of operating efficiency. Investors should treat the quarterly DSO swings as a timing signal to reconcile against percentage-of-completion accounting rather than as a trend in collection quality.