The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Motorola Solutions's share price is $449.35.
Motorola Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was $61.27. Hence, Motorola Solutions's PS Ratio for today is 7.33.
Warning Sign:
Motorola Solutions Inc stock PS Ratio (=7.39) is close to 10-year high of 7.76
The historical rank and industry rank for Motorola Solutions's PS Ratio or its related term are showing as below:
MSI'
s PS Ratio Range Over the Past 10 Years
Min: 2.11 Med: 3.49 Max: 7.76
Current: 7.32
During the past 13 years, Motorola Solutions's highest PS Ratio was 7.76. The lowest was 2.11. And the median was 3.49.
MSI's PS Ratio is ranked worse than 88.37% of 2442
companies
in the Hardware industry
Industry Median: 1.54
vs MSI: 7.32
During the past 12 months, the average Revenue per Share Growth Rate of Motorola Solutions was 9.20% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 10.80% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 6.30% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 9.40% per year.
During the past 13 years, Motorola Solutions's highest 3-Year average Revenue per Share Growth Rate was 27.80% per year. The lowest was -41.20% per year. And the median was 5.70% per year.
Back to Basics: PS Ratio
Motorola Solutions PS Ratio Historical Data
The historical data trend for Motorola Solutions's PS Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Motorola Solutions's PS Ratio
For the Communication Equipment subindustry, Motorola Solutions's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Motorola Solutions's PS Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Motorola Solutions's PS Ratio distribution charts can be found below:
* The bar in red indicates where Motorola Solutions's PS Ratio falls into.
Motorola Solutions PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Motorola Solutions's Share Price of today is $449.35. Motorola Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $61.27.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
Motorola Solutions (NYSE:MSI) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Motorola Solutions PS Ratio Related Terms
Thank you for viewing the detailed overview of Motorola Solutions's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Motorola Solutions is a leading provider of communications and analytics, primarily serving public safety departments as well as schools, hospitals, and businesses. The bulk of the firm's revenue comes from sales of land mobile radios and radio network infrastructure, but the firm also sells surveillance equipment and dispatch software. Most of Motorola's revenue comes from government agencies, while roughly 25% comes from schools and private businesses. Motorola has customers in over 100 countries and in every state in the United States.
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