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Agilent Technologies Inc. – Analytical Laboratory Instrument Manufacturing
Agilent Technologies Inc. is a global leader in life sciences, diagnostics, and applied chemical markets, delivering insight and innovation toward improving the quality of life. Agilent instruments, software, services, solutions, and people provide trusted answers to customers' most challenging questions. The company generated revenue of $5.34 billion in fiscal year 2020 and employs 16,400 people worldwide.
Analysis Results
Intrinsic Value $54.24
Latest Price $121.55
Relative Value 124% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 3.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.05 0.967
2023 1.09 0.923
2024 1.12 0.881
2025 1.17 0.841
2026 1.21 0.803
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 19.0 billion. This corresponds to a present value of 11.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.41 billion. Adding in the terminal value gives a total present value of 16.1 billion.

There are presently 296.0 million outstanding shares, so the intrinsic value per share is 54.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,598,000,000
Current Cash 3,150,000,000
Current Liabilities 3,416,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,032,000,000
Change in NCWC 450,000,000
EBIT 2,694,000,000
Tax Provision 300,000,000
Depreciation and Amortization 642,000,000
Capital Expenditure -378,000,000
Unlevered Free Cash Flow 3,110,867,647
Current Assets 3,415,000,000
Current Cash 1,441,000,000
Current Liabilities 1,467,000,000
Current Debt 75,000,000
Non-Cash Working Capital (NCWC) 582,000,000
Change in NCWC 239,000,000
EBIT 846,000,000
Tax Provision 123,000,000
Depreciation and Amortization 308,000,000
Capital Expenditure -119,000,000
Unlevered Free Cash Flow 1,150,415,676
Current Assets 3,189,000,000
Current Cash 1,382,000,000
Current Liabilities 2,080,000,000
Current Debt 616,000,000
Non-Cash Working Capital (NCWC) 343,000,000
Change in NCWC -87,000,000
EBIT 941,000,000
Tax Provision -152,000,000
Depreciation and Amortization 238,000,000
Capital Expenditure -155,000,000
Unlevered Free Cash Flow 937,000,000
Current Assets 3,848,000,000
Current Cash 2,247,000,000
Current Liabilities 1,171,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 430,000,000
Change in NCWC -8,000,000
EBIT 928,000,000
Tax Provision 630,000,000
Depreciation and Amortization 210,000,000
Capital Expenditure -177,000,000
Unlevered Free Cash Flow 334,987,315
Current Assets 4,169,000,000
Current Cash 2,678,000,000
Current Liabilities 1,263,000,000
Current Debt 210,000,000
Non-Cash Working Capital (NCWC) 438,000,000
Change in NCWC 37,000,000
EBIT 841,000,000
Tax Provision 119,000,000
Depreciation and Amortization 212,000,000
Capital Expenditure -176,000,000
Unlevered Free Cash Flow 789,368,617
Current Assets 3,635,000,000
Current Cash 2,289,000,000
Current Liabilities 945,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 401,000,000
Change in NCWC -306,000,000
EBIT 615,000,000
Tax Provision 82,000,000
Depreciation and Amortization 246,000,000
Capital Expenditure -139,000,000
Unlevered Free Cash Flow 323,297,794
Current Assets 3,686,000,000
Current Cash 2,003,000,000
Current Liabilities 976,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 707,000,000
Change in NCWC -63,000,000
EBIT 513,000,000
Tax Provision 42,000,000
Depreciation and Amortization 253,000,000
Capital Expenditure -98,000,000
Unlevered Free Cash Flow 560,112,500
Current Assets 5,500,000,000
Current Cash 3,028,000,000
Current Liabilities 1,702,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 770,000,000
Change in NCWC 64,000,000
EBIT 824,000,000
Tax Provision 142,000,000
Depreciation and Amortization 384,000,000
Capital Expenditure -205,000,000
Unlevered Free Cash Flow 885,873,065
Current Assets 4,983,000,000
Current Cash 2,675,000,000
Current Liabilities 1,602,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 706,000,000
Change in NCWC 82,000,000
EBIT 953,000,000
Tax Provision 135,000,000
Depreciation and Amortization 372,000,000
Capital Expenditure -195,000,000
Unlevered Free Cash Flow 1,062,227,008
Current Assets 4,629,000,000
Current Cash 2,362,000,000
Current Liabilities 1,893,000,000
Current Debt 250,000,000
Non-Cash Working Capital (NCWC) 624,000,000
Change in NCWC 166,000,000
EBIT 1,119,000,000
Tax Provision -110,000,000
Depreciation and Amortization 301,000,000
Capital Expenditure -194,000,000
Unlevered Free Cash Flow 1,392,000,000

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