Is Motorola Solutions, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Motorola Solutions, Inc. moved from fair to attractive, indicating a shift in its perceived value. The company appears to be undervalued, with a P/E ratio of 34, which is higher than its peers like Apple, Inc. at 35.56 and Garmin Ltd. at 30.27. Additionally, the EV to EBITDA ratio stands at 23.65, while the industry average is lower, suggesting that Motorola Solutions may be trading at a discount relative to its earnings potential. The PEG ratio is notably high at 33.91, indicating that growth expectations may not be fully priced in.
In terms of returns, Motorola Solutions has underperformed against the S&P 500 in the short term, with a 1-year return of -23.03% compared to the index's 13.19%. However, over the longer term, the stock has shown resilience with a 5-year return of 122.86%, outperforming the S&P 500's 87.83%. This mixed performance, combined with the attractive valuation metrics, reinforces the conclusion that Motorola Solutions is currently undervalued.