DCF Tool

MSI

Motorola Solutions Inc – Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
motorola solutions, inc. (www.motorolasolutions.com), provides mission-critical communications products and services to public safety and commercial customers around the world. our innovations, products, and services play essential roles in people's lives. we help firefighters see around buildings and police officers see around street corners. we provide the situational awareness first responders need when a moment brings catastrophe. we do this by connecting them to seamless communication networks, applications and services, by providing them with real-time information, and by arming them with intuitive, nearly indestructible handheld devices. motorola solutions helps people be their best in the moments that matter. learn more at www.motorolasolutions.com.
Analysis Results
Intrinsic Value $331.40
Latest Price $335.77
Relative Value 1% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 12.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 2.22 2.07
2025 2.49 2.16
2026 2.8 2.26
2027 3.14 2.36
2028 3.52 2.47
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 67.0 billion. This corresponds to a present value of 43.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.3 billion. Adding in the terminal value gives a total present value of 55.0 billion.

There are presently 166.0 million outstanding shares, so the intrinsic value per share is 331.4.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,725,000,000
Current Cash 1,705,000,000
Current Liabilities 5,736,000,000
Current Debt 1,313,000,000
Non-Cash Working Capital (NCWC) -403,000,000
Change in NCWC 226,000,000
EBIT 2,374,000,000
Tax Provision 432,000,000
Depreciation and Amortization 356,000,000
Capital Expenditure -253,000,000
Unlevered Free Cash Flow 2,225,102,516
Current Assets 5,255,000,000
Current Cash 1,325,000,000
Current Liabilities 4,560,000,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) -629,000,000
Change in NCWC -109,000,000
EBIT 1,761,000,000
Tax Provision 148,000,000
Depreciation and Amortization 440,000,000
Capital Expenditure -256,000,000
Unlevered Free Cash Flow 1,663,968,316
Current Assets 5,412,000,000
Current Cash 1,874,000,000
Current Liabilities 4,063,000,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) -520,000,000
Change in NCWC -116,000,000
EBIT 1,722,000,000
Tax Provision 302,000,000
Depreciation and Amortization 438,000,000
Capital Expenditure -243,000,000
Unlevered Free Cash Flow 1,465,920,103
Current Assets 4,327,000,000
Current Cash 1,254,000,000
Current Liabilities 3,489,000,000
Current Debt 12,000,000
Non-Cash Working Capital (NCWC) -404,000,000
Change in NCWC -158,000,000
EBIT 1,417,000,000
Tax Provision 221,000,000
Depreciation and Amortization 409,000,000
Capital Expenditure -217,000,000
Unlevered Free Cash Flow 1,184,256,388
Current Assets 4,178,000,000
Current Cash 1,001,000,000
Current Liabilities 3,439,000,000
Current Debt 16,000,000
Non-Cash Working Capital (NCWC) -246,000,000
Change in NCWC -207,000,000
EBIT 1,636,000,000
Tax Provision 130,000,000
Depreciation and Amortization 394,000,000
Capital Expenditure -248,000,000
Unlevered Free Cash Flow 1,362,532,467
Current Assets 4,272,000,000
Current Cash 1,246,000,000
Current Liabilities 3,096,000,000
Current Debt 31,000,000
Non-Cash Working Capital (NCWC) -39,000,000
Change in NCWC 95,000,000
EBIT 1,402,000,000
Tax Provision 133,000,000
Depreciation and Amortization 360,000,000
Capital Expenditure -197,000,000
Unlevered Free Cash Flow 1,490,793,103
Current Assets 3,950,000,000
Current Cash 1,205,000,000
Current Liabilities 2,931,000,000
Current Debt 52,000,000
Non-Cash Working Capital (NCWC) -134,000,000
Change in NCWC 138,000,000
EBIT 1,327,000,000
Tax Provision 1,227,000,000
Depreciation and Amortization 343,000,000
Capital Expenditure -227,000,000
Unlevered Free Cash Flow 354,000,000
Current Assets 3,468,000,000
Current Cash 1,076,000,000
Current Liabilities 2,668,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) -272,000,000
Change in NCWC -284,000,000
EBIT 1,208,000,000
Tax Provision 282,000,000
Depreciation and Amortization 295,000,000
Capital Expenditure -271,000,000
Unlevered Free Cash Flow 544,379,146
Current Assets 4,582,000,000
Current Cash 2,381,000,000
Current Liabilities 2,193,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 12,000,000
Change in NCWC -667,000,000
EBIT 1,076,000,000
Tax Provision 274,000,000
Depreciation and Amortization 150,000,000
Capital Expenditure -175,000,000
Unlevered Free Cash Flow 62,490,730
Current Assets 6,879,000,000
Current Cash 3,954,000,000
Current Liabilities 2,250,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 679,000,000
Change in NCWC 102,000,000
EBIT 978,000,000
Tax Provision -465,000,000
Depreciation and Amortization 173,000,000
Capital Expenditure -181,000,000
Unlevered Free Cash Flow 1,072,000,000
Current Assets 7,020,000,000
Current Cash 3,227,000,000
Current Liabilities 3,220,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 577,000,000
Change in NCWC 110,000,000
EBIT 1,332,000,000
Tax Provision 40,000,000
Depreciation and Amortization 228,000,000
Capital Expenditure -191,000,000
Unlevered Free Cash Flow 1,432,467,248
Current Assets 7,401,000,000
Current Cash 3,603,000,000
Current Liabilities 3,335,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 467,000,000
Change in NCWC 200,000,000
EBIT 1,281,000,000
Tax Provision 337,000,000
Depreciation and Amortization 208,000,000
Capital Expenditure -187,000,000
Unlevered Free Cash Flow 1,146,693,827

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