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Keysight Technologies, Inc. — Intrinsic Value & Fair Price

KEYS
NYSETechnologyHardware, Equipment & PartsCIK 0001601046keysight.comAbout KEYS
Last close · Oct 16, 2026331.21−10.87 (−3.18%)
Market cap$56.4B
Model value · DCF · Perpetuity growth · 5y
102.12
Keysight Technologies closed at $331.21 — overvalued by 224% vs model.
68.09the model's range204.39

DCF · Perpetuity growth · 5y leads for profitable growth — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
36.52 – 387.16
Wall St. target
425.00 22% below
Above model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Valuation models

price $331.21 · as of Oct 17, 2026

DCF · Perpetuity growth · 5y leads for profitable growth — positive operating income and three years of positive free cash flow. How we value a stock walks through every input. The price is 224% above the model value: the models see only the filed business, and a company priced on businesses with no revenue line yet is better taken apart, as Tesla is.

engine pkg:0.1.0

Research on KEYS

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How it is valued

Valued asProfitable Growth
Revenue declining (~-1% recent)Moderate margins (16% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
67.5×
EV / EBITDA
40.0×
FCF yield
2.2%
Dividend yield, TTM
0.00%
Beta
1.18
Cost of capital (WACC)
9.48%
Full financials

Analyst actions

third-party, quoted
08-19Truist Financial · target400.00
08-19UBS · target440.00
08-19Morgan Stanley · target425.00
07-13Morgan Stanley · “Overweight” from “Equal Weight”upgrade
Ratings, targets and estimates

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just KEYS. No account.

About Keysight Technologies

Keysight Technologies, Inc. specializes in providing advanced electronic design and testing solutions to a diverse array of global industries, spanning commercial communications, networking, aerospace, defense, government, automotive, energy, semiconductor manufacturing, general electronics, and education. The company's operations extend across the Americas, Europe, and the Asia Pacific region. Its Communications Solutions Group focuses on electronic design automation (EDA) software and sophisticated radio frequency (RF) and microwave testing systems, along with associated software. This segment also delivers cutting-edge hardware and virtual platforms for network testing, addressing areas such as data centers, routing and switching, software-defined networking (SDN), security, and encryption. Furthermore, it supplies a range of precision measurement instruments including oscilloscopes, logic and serial protocol analyzers, signal sources, arbitrary waveform generators, bit error rate testers, and optical analysis equipment like modulation analyzers, component analyzers, power meters, and laser sources. The group also facilitates the sale of certified refurbished Keysight equipment. Conversely, the Electronic Industrial Solutions Group offers a comprehensive suite of design and verification tools for industrial applications. Its product lineup encompasses essential laboratory and industrial instruments such as digital multimeters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, source measure units, and ultra-high precision device current analyzers, alongside test executive software platforms. This segment also provides various power supply units, including AC/DC modular and electronically programmable loads, as well as printed-circuit-board-assembly testers, integrated circuit parametric testers, and sub-nanometer positioning sub-assemblies, complemented by general test and measurement products and software. Beyond its core products, Keysight provides extensive support services, including technical assistance, training, and consulting. The company employs a multifaceted distribution strategy, leveraging a direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was established in 1939 and is headquartered in Santa Rosa, California.

CEO
Satish C. Dhanasekaran
Headquarters
Santa Rosa, CA
Employees
16,600
IPO
2014-10-20
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.