Is Motorola Solutions, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Motorola Solutions, Inc. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, especially when considering its P/E ratio of 34, which is higher than the peer average of 30.27 for Garmin Ltd., and its EV to EBITDA ratio of 23.65, which is also above the peer average of 23.11. Additionally, the company boasts a remarkable ROE of 126.04%, showcasing strong profitability relative to equity.
In comparison to its peers, Motorola Solutions, Inc. has a higher P/E ratio than Apple, Inc. (35.56) and a lower EV to EBITDA ratio than both Garmin Ltd. and Apple, indicating a competitive position in the market. Despite the recent underperformance against the S&P 500, with a YTD return of -3.73% compared to the index's 13.30%, the long-term outlook remains positive, as evidenced by a 3-year return of 101.59%, significantly outperforming the S&P 500's 81.19%.