Discounted Cash Flow (DCF) Analysis Unlevered

Motorola Solutions, Inc. (MSI)

$233.58

+4.61 (+2.01%)
All numbers are in Millions, Currency in USD
Stock DCF: 119.32 | 233.58 | overvalue

Operating Data

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 (%)
EBITDA 1,6301,6991,6291,8122,2002,104.312,244.862,394.792,554.732,725.36
EBITDA (%)
EBIT 1,2871,3391,2351,4031,7621,648.401,758.501,875.952,001.242,134.90
EBIT (%)
Depreciation 343360394409438455.91486.36518.84553.50590.46
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 1,2051,2461,0011,4121,8741,578.201,683.611,796.061,916.022,043.98
Total Cash (%)
Account Receivables 2,1622,4732,5592,3982,5622,854.043,044.663,248.013,464.943,696.36
Account Receivables (%)
Inventories 327356447508788560.26597.68637.59680.18725.61
Inventories (%)
Accounts Payable 7447777797761,086974.141,039.201,108.611,182.651,261.64
Accounts Payable (%)
Capital Expenditure -227-197-248-217-243-266.49-284.29-303.28-323.53-345.14
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 233.58
Beta 0.909
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 7.909
Total Debt 6,130
Total Equity 39,708.60
Total Capital 45,838.60
Debt Weighting 13.37
Equity Weighting 86.63
Wacc

Build Up Free Cash

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
EBITDA 1,6301,6991,6291,8122,2002,104.312,244.862,394.792,554.732,725.36
EBIT 1,2871,3391,2351,4031,7621,648.401,758.501,875.952,001.242,134.90
Tax Rate 114.41%12.34%13.29%19.17%19.78%35.80%35.80%35.80%35.80%35.80%
EBIAT -185.391,173.751,070.911,134.111,413.461,058.341,129.031,204.431,284.881,370.69
Depreciation 343360394409438455.91486.36518.84553.50590.46
Accounts Receivable --311-86161-164-292.04-190.62-203.35-216.93-231.42
Inventories --29-91-61-280227.74-37.42-39.92-42.58-45.43
Accounts Payable -332-3310-111.8665.0669.4174.0478.99
Capital Expenditure -227-197-248-217-243-266.49-284.29-303.28-323.53-345.14
UFCF -69.391,029.751,041.911,423.111,474.461,071.611,168.121,246.141,329.371,418.16
WACC
PV UFCF 999.351,015.911,010.691,005.501,000.33
SUM PV UFCF 5,031.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.23
Free cash flow (t + 1) 1,446.52
Terminal Value 27,658.14
Present Value of Terminal Value 19,509.29

Intrinsic Value

Enterprise Value 24,541.07
Net Debt 4,256
Equity Value 20,285.07
Shares Outstanding 170
Equity Value Per Share 119.32