DCF Tool


Keysight Technologies Inc – Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
keysight technologies has the broadest range of products in the industry to accelerate deployment of your new technologies. keysight reflects our rich heritage - a direct line from both hewlett-packard's standards of integrity and innovation and agilent's premier measurement business. the name keysight conveys the ability to see what others cannot, offering the critical or key insight to understand and unlock the changing technology landscape.
Analysis Results
Intrinsic Value $618.49
Latest Price $137.88
Relative Value 78% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 24.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 24.4%, 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)
2023 1.74 1.67
2024 2.16 1.99
2025 2.69 2.38
2026 3.34 2.84
2027 4.16 3.39
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 125 billion. This corresponds to a present value of 97.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.3 billion. Adding in the terminal value gives a total present value of 110 billion.

There are presently 178.0 million outstanding shares, so the intrinsic value per share is 618.49.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,234,000,000
Current Cash 2,042,000,000
Current Liabilities 1,407,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 785,000,000
Change in NCWC 312,000,000
EBIT 1,326,000,000
Tax Provision 161,000,000
Depreciation and Amortization 223,000,000
Capital Expenditure -185,000,000
Unlevered Free Cash Flow 1,509,863,035
Current Assets 3,834,000,000
Current Cash 2,052,000,000
Current Liabilities 1,309,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 473,000,000
Change in NCWC -64,000,000
EBIT 1,063,000,000
Tax Provision 116,000,000
Depreciation and Amortization 293,000,000
Capital Expenditure -174,000,000
Unlevered Free Cash Flow 995,912,871
Current Assets 3,374,000,000
Current Cash 1,756,000,000
Current Liabilities 1,081,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 537,000,000
Change in NCWC -77,000,000
EBIT 721,000,000
Tax Provision 134,000,000
Depreciation and Amortization 326,000,000
Capital Expenditure -117,000,000
Unlevered Free Cash Flow 726,043,363
Current Assets 3,215,000,000
Current Cash 1,598,000,000
Current Liabilities 1,003,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 614,000,000
Change in NCWC 112,000,000
EBIT 711,000,000
Tax Provision 94,000,000
Depreciation and Amortization 308,000,000
Capital Expenditure -120,000,000
Unlevered Free Cash Flow 917,525,874
Current Assets 2,378,000,000
Current Cash 913,000,000
Current Liabilities 1,462,000,000
Current Debt 499,000,000
Non-Cash Working Capital (NCWC) 502,000,000
Change in NCWC -48,000,000
EBIT 363,000,000
Tax Provision -576,000,000
Depreciation and Amortization 310,000,000
Capital Expenditure -132,000,000
Unlevered Free Cash Flow 493,000,000
Current Assets 2,177,000,000
Current Cash 818,000,000
Current Liabilities 819,000,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 550,000,000
Change in NCWC 123,000,000
EBIT 239,000,000
Tax Provision 77,000,000
Depreciation and Amortization 225,000,000
Capital Expenditure -72,000,000
Unlevered Free Cash Flow 412,189,944
Current Assets 1,854,000,000
Current Cash 783,000,000
Current Liabilities 644,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 427,000,000
Change in NCWC 17,000,000
EBIT 406,000,000
Tax Provision 31,000,000
Depreciation and Amortization 134,000,000
Capital Expenditure -91,000,000
Unlevered Free Cash Flow 431,612,021
Current Assets 1,579,000,000
Current Cash 483,000,000
Current Liabilities 686,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 410,000,000
Change in NCWC 139,000,000
EBIT 431,000,000
Tax Provision -125,000,000
Depreciation and Amortization 99,000,000
Capital Expenditure -92,000,000
Unlevered Free Cash Flow 577,000,000

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