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$757.65 - $830.83$793.56
Blended Fair Value$1,559.17
Current Price$456.52
Upside241.53%
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 Rate4.72%4.72%4.72%
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 Rate4.72%4.72%4.72%
Growth Rate5.48%6.48%7.48%
Year 1 PV (M)955.70964.76973.82
Year 2 PV (M)1,204.901,227.851,251.02
Year 3 PV (M)1,457.631,499.481,542.12
Year 4 PV (M)1,713.921,779.851,847.66
Year 5 PV (M)1,973.832,069.192,168.20
PV of Terminal Value (M)121,192.00127,046.93133,125.98
Equity Value (M)128,497.98134,588.06140,908.82
Shares Outstanding (M)169.60169.60169.60
Fair Value$757.65$793.56$830.83
Upside / Downside65.96%73.83%81.99%

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