Discounted Cash Flow

Motorola Solutions, Inc.

MSI · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $6.0b $560.0m $894.0m 9.3% $3.30
2017 $6.4b (5.7%) $-155.0m (-127.7%) $1.1b (25.2%) -2.4% (-126.2%) $-0.95 (-128.8%)
2018 $7.3b (15.1%) $966.0m (723.2%) $878.0m (-21.5%) 13.2% (641.5%) $5.95 (726.3%)
2019 $7.9b (7.4%) $868.0m (-10.1%) $1.6b (79.4%) 11.0% (-16.3%) $5.21 (-12.4%)
2020 $7.4b (-6.0%) $949.0m (9.3%) $1.4b (-11.4%) 12.8% (16.3%) $5.58 (7.1%)
2021 $8.2b (10.2%) $1.2b (31.2%) $1.6b (14.2%) 15.2% (19.0%) $7.36 (31.9%)
2022 $9.1b (11.5%) $1.4b (9.5%) $1.6b (-1.7%) 15.0% (-1.8%) $8.14 (10.6%)
2023 $10.0b (9.5%) $1.7b (25.4%) $1.8b (14.3%) 17.1% (14.5%) $10.23 (25.7%)
2024 $10.8b (8.4%) $1.6b (-7.7%) $2.1b (19.2%) 14.6% (-14.9%) $9.45 (-7.6%)
2025 $11.7b (8.0%) $2.2b (36.6%) $2.6b (20.5%) 18.4% (26.5%) $12.93 (36.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model