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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
11.50 (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 $17,042 Mil. Motorola Solutions Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $1,482 Mil. Therefore, Motorola Solutions Inc's EV/EBITDA ratio for today is 11.50.

MSI' s EV-to-EBITDA Range Over the Past 10 Years
Min: -26.6   Max: 46.7
Current: 11.5

-26.6
46.7

During the past 13 years, the highest EV/EBITDA Ratio of Motorola Solutions Inc was 46.70. The lowest was -26.60. And the median was 9.00.

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: 11.50 )

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 $81.86. Motorola Solutions Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $3.61. Therefore, Motorola Solutions Inc's P/E Ratio for today is 22.68.

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)
=17041.561/1482
=11.50

Motorola Solutions Inc's current Enterprise Value is $17,042 Mil.
Motorola Solutions Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 308 (Jun. 2016 ) + 427 (Sep. 2016 ) + 493 (Dec. 2016 ) + 254 (Mar. 2017 ) = $1,482 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)
=81.86/3.61
=22.68

Motorola Solutions Inc's share price for today is $81.86.
Motorola Solutions Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.61 (Jun. 2016 ) + 1.13 (Sep. 2016 ) + 1.42 (Dec. 2016 ) + 0.45 (Mar. 2017 ) = $3.61.

* 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 29.65-4.338.193.729.028.9210.92-18.2811.4812.44

Motorola Solutions Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda -18.28-17.79-18.11-22.6911.4813.8212.1511.9312.4412.00
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