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GuruFocus has detected 2 Warning Signs with Motorola Solutions Inc $MSI.
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Motorola Solutions Inc (NYSE:MSI)
EV-to-EBITDA
12.76 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Motorola Solutions Inc's enterprise value is $17,422 Mil. Motorola Solutions Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $1,365 Mil. Therefore, Motorola Solutions Inc's EV/EBITDA ratio for today is 12.76.

MSI' s EV-to-EBITDA Range Over the Past 10 Years
Min: -26.7   Max: 46.2
Current: 12.76

-26.7
46.2

During the past 13 years, the highest EV/EBITDA Ratio of Motorola Solutions Inc was 46.20. The lowest was -26.70. And the median was 9.80.

MSI's EV-to-EBITDA is ranked higher than
50% of the 513 Companies
in the Global Communication Equipment industry.

( Industry Median: 12.68 vs. MSI: 12.76 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Motorola Solutions Inc's stock price is $85.97. Motorola Solutions Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $3.26. Therefore, Motorola Solutions Inc's P/E Ratio for today is 26.37.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Motorola Solutions Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=17421.863/1365
=12.76

Motorola Solutions Inc's current Enterprise Value is $17,422 Mil.
Motorola Solutions Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 137 (Mar. 2016 ) + 308 (Jun. 2016 ) + 427 (Sep. 2016 ) + 493 (Dec. 2016 ) = $1,365 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Motorola Solutions Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=85.97/3.26
=26.37

Motorola Solutions Inc's share price for today is $85.97.
Motorola Solutions Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.1 (Mar. 2016 ) + 0.61 (Jun. 2016 ) + 1.13 (Sep. 2016 ) + 1.42 (Dec. 2016 ) = $3.26.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Motorola Solutions Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 29.65-2.0113.955.159.1111.9813.47-17.0511.0712.52

Motorola Solutions Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 16.53-17.05-18.07-18.19-22.8011.0713.7912.1511.9312.52
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