Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Motorola Solutions, Inc. (0K3H.L)

Company Dividend Discount ModelIndustry: Communication EquipmentSector: Technology

Valuation Snapshot

Stable Growth$2,105.56 - $2,480.71$2,324.79
Multi-Stage$590.37 - $647.09$618.21
Blended Fair Value$1,471.50
Current Price$456.52
Upside222.33%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.53%7.48%3.863.473.132.842.572.231.991.811.651.63
YoY Growth--11.04%11.13%9.96%10.55%15.04%12.46%9.77%9.64%1.08%-12.89%
Dividend Yield--0.89%0.98%1.09%1.19%1.36%1.65%1.42%1.72%1.91%2.15%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,116.00
(-) Cash Dividends Paid (M)710.00
(=) Cash Retained (M)1,406.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)423.20264.50158.70
Cash Retained (M)1,406.001,406.001,406.00
(-) Cash Required (M)-423.20-264.50-158.70
(=) Excess Retained (M)982.801,141.501,247.30
(/) Shares Outstanding (M)169.60169.60169.60
(=) Excess Retained per Share5.796.737.35
LTM Dividend per Share4.194.194.19
(+) Excess Retained per Share5.796.737.35
(=) Adjusted Dividend9.9810.9211.54
WACC / Discount Rate5.20%5.20%5.20%
Growth Rate5.48%6.48%7.48%
Fair Value$2,105.56$2,324.79$2,480.71
Upside / Downside361.22%409.24%443.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,116.002,253.052,398.982,554.362,719.802,895.962,982.84
Payout Ratio33.55%44.84%56.13%67.42%78.71%90.00%92.50%
Projected Dividends (M)710.001,010.341,346.601,722.192,140.782,606.362,759.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.20%5.20%5.20%
Growth Rate5.48%6.48%7.48%
Year 1 PV (M)951.39960.41969.43
Year 2 PV (M)1,194.061,216.811,239.77
Year 3 PV (M)1,438.011,479.291,521.37
Year 4 PV (M)1,683.231,747.981,814.58
Year 5 PV (M)1,929.752,022.982,119.78
PV of Terminal Value (M)92,930.6397,420.22102,081.67
Equity Value (M)100,127.08104,847.70109,746.60
Shares Outstanding (M)169.60169.60169.60
Fair Value$590.37$618.21$647.09
Upside / Downside29.32%35.42%41.74%

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