Discounted Cash Flow (DCF) Analysis Levered

Motorola Solutions, Inc. (MSI)

$248.15

-2.06 (-0.82%)
All numbers are in Millions, Currency in USD
Stock DCF: 210.31 | 248.15 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 6,3807,3437,8877,4148,1718,716.739,298.929,919.9810,582.5311,289.33
Revenue (%)
Operating Cash Flow 1,3461,0751,8231,6131,8371,797.201,917.232,045.282,181.892,327.61
Operating Cash Flow (%)
Capital Expenditure -227-197-248-217-243-266.49-284.29-303.28-323.53-345.14
Capital Expenditure (%)
Free Cash Flow 1,1198781,5751,3961,5941,530.711,632.951,742.011,858.361,982.47

Weighted Average Cost Of Capital

Share price $ 248.15
Beta 0.905
Diluted Shares Outstanding 170
Cost of Debt
Tax Rate 19.78
After-tax Cost of Debt 2.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.035
Total Debt 6,130
Total Equity 42,185.50
Total Capital 48,315.50
Debt Weighting 12.69
Equity Weighting 87.31
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 6,3807,3437,8877,4148,1718,716.739,298.929,919.9810,582.5311,289.33
Operating Cash Flow 1,3461,0751,8231,6131,8371,797.201,917.232,045.282,181.892,327.61
Capital Expenditure -227-197-248-217-243-266.49-284.29-303.28-323.53-345.14
Free Cash Flow 1,1198781,5751,3961,5941,530.711,632.951,742.011,858.361,982.47
WACC
PV LFCF 1,437.291,439.701,442.121,444.541,446.97
SUM PV LFCF 7,210.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.50
Free cash flow (t + 1) 2,022.12
Terminal Value 44,936.07
Present Value of Terminal Value 32,797.97

Intrinsic Value

Enterprise Value 40,008.59
Net Debt 4,256
Equity Value 35,752.59
Shares Outstanding 170
Equity Value Per Share 210.31