Zebra Technologies

Methodology

Zebra Technologies' fair value calculation is complicated by the cyclical nature of enterprise hardware demand, where barcode scanners, mobile computers, and RFID solutions see variable spending based on retail and logistics capital budgets. The method works best when normalized for mid-cycle enterprise technology spending, as peak and trough periods driven by economic conditions create misleading signals. Investors should also consider that recurring software and services revenue is growing and provides more stable earnings than hardware alone.

Methodology

PEG ratios for Zebra can be volatile because growth rates fluctuate with enterprise hardware refresh cycles, retail technology investments, and warehouse automation spending that vary with economic conditions. Low PEG ratios during strong spending cycles may signal peak earnings rather than value, while high ratios during downturns may represent opportunity if competitive positioning remains strong. Investors should compare Zebra's PEG to historical ranges and emphasize software attach rates and subscription revenue trends over hardware cycle volatility.

Methodology

Zebra pays no dividend, as management prioritizes reinvesting in software development, RFID technology advancement, and strategic acquisitions to expand beyond hardware into data analytics and workflow solutions. PEGY therefore equals PEG with no yield component, reflecting the company's growth-focused capital allocation strategy. For Zebra investors, evaluating software revenue growth, enterprise customer retention, and warehouse automation adoption matters far more than dividend income.