Keysight Technologies, Inc. (KEYS) DCF Valuation
Transparent DCF models put Keysight Technologies, Inc. (KEYS)'s fair value in a range of $96.48 – $99.27 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $326.24 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $326.24, the market is pricing in roughly +20.8%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +5.7%. The price is betting on acceleration above its track record.
Current Price
$326.24
Fair-Value Range
$96.48 – $99.27
Market-Implied Growth
+20.8%/yr
vs +5.7% 5Y actual
KEYS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $1.1B · 0.17B shares · net debt $854.0M
Estimated Fair Value
$99.27
-69.6% vs $326.24
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $326.24; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $125 | $131 | $139 | $148 | $160 |
| 9.0% | $106 | $111 | $116 | $122 | $129 |
| 10.0% | $92.37 | $95.60 | $99.27 | $103 | $108 |
| 11.0% | $81.43 | $83.80 | $86.44 | $89.42 | $92.80 |
| 12.0% | $72.61 | $74.39 | $76.35 | $78.54 | $80.98 |
About Keysight Technologies, Inc.
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.
- Sector
- Technology
- Industry
- Hardware, Equipment & Parts
- CEO
- Satish C. Dhanasekaran