MSINEUTRAL

MSI P/E Ratio Analysis

37.7x

Updated 633h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 37.7x means investors are paying $37.70 for every $1 of the company’s earnings, a common measure of how expensive a stock is relative to its profitability.

Sector Performance

77th percentile

MSI

37.7x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

32.9x(Jul 2026)

↓ Declining

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Deep Analysis

The P/E ratio of 37.7x means investors are paying $37.70 for every $1 of the company’s earnings, a common measure of how expensive a stock is relative to its profitability.

This is well above the sector median of 23.2x, placing the company in the 77th percentile of its peer group, so it trades richer than most competitors. The metric is increasing, with a year-over-year rise of +14.9% and a quarter-over-quarter rise of +14.7%, reflecting a sustained upward path over the last eight quarters. The combination of a high P/E and an upward trend suggests the market is pricing in stronger future growth, but it also leaves less margin for error if earnings disappoint. For investors, this level and trajectory could mean higher valuation risk, though the momentum may also signal improving expectations. This metric supports the overall NEUTRAL verdict: the elevated ratio does not clearly justify a bullish case on its own, nor does it alone indicate a sell.

Frequently Asked Questions

What does the P/E Ratio tell investors about MSI?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are MSI's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x), MTSI (118.9x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.