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 based on its current metrics, with a P/E ratio of 34, an EV to EBITDA of 23.65, and an impressive ROE of 126.04%. In comparison to peers, Apple, Inc. has a higher P/E of 35.56, while Garmin Ltd. shows a more attractive P/E of 30.27, suggesting that Motorola may offer better value relative to its competitors.
Despite recent underperformance against the S&P 500, with a 1Y return of -6.83% compared to the index's 14.08%, the long-term outlook remains positive, as evidenced by a 3Y return of 101.59% versus 81.19% for the S&P 500. This suggests that while short-term performance has lagged, the company's fundamentals and valuation metrics present a compelling case for potential growth.