NYSE · KEYS

Keysight Technologies, Inc.

Technology · Hardware, Equipment & Parts

$331.44▲ 2.92% ($9.40)at close

After hours$328.46▼ 0.90%7:41 PM ET

52-week

$158.79$374.96

What the market price implies · Reverse DCF

To support a price of $331.44, this model requires revenue to grow by 24.77%/yr over the next 10 years, compounded annually.

Historical revenue grew by 2.13%/yr over the past 4 years. The required annual growth rate is 22.64 percentage points higher.

Selected forecast · Base scenario

8.4%/yr · actual 10-year annualized revenue growth

Year 1 growth: 13.16%

Market-implied · Base operating assumptions + edited margins

24.77%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$331.44

Estimated value / share

$110.18

Base scenario

This estimate is 66.76% below the price used.

USD · TTM ending 2026-07-31

Latest quarterly growth differs materially from the latest annual pace. It remains an observed growth input; review whether acceleration or a change in the business explains it.

Year 1 growth 13.16% · Ending margin 20.25% · Discount rate 11.24%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-07-31
Data refreshed: Sep 18, 2026, 4:13 AM UTC · provider

Why this method?

FCFF is positive, but the series is too unstable to anchor a direct cash-flow CAGR and the business still fails the steady-state comparability checks. Use a revenue-and-margin transition model instead of normalizing and compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 7 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 187.9%.

Do you have 5+ years of positive FCFF history? 7 consecutive positive FCFF years are available.

Is the business model structurally similar to what it should be in 10 years? Revenue is still growing 36.5%, above the 15.0% maturity threshold, so a steady-state FCFF model would lean too heavily on a business still scaling.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 91.68%Revenue (TTM): 25.54%FCF (TTM): -2.39%P/FCF: 95th pct

What changed

The stock rose 91.68% over the last year. Revenue grew 25.54% over the trailing twelve months. Operating margin moved from 16.96% to 20.25%. Free cash flow declined 2.39% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (95th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Operating margin is at 20.25% — continued expansion would be needed to justify the premium. Revenue growth of 25.54% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.

Performance

Return analysis

Company profile

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.

CEOSatish C. Dhanasekaran

SectorTechnology

IndustryHardware, Equipment & Parts

Employees16,600

IPO dateOct 20, 2014

https://www.keysight.com

Market multiples

Forward P/E—

EV/EBITDA22.98

Enterprise value$32.75B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth36.54%

Gross margin (FY2025)62.08%▼0.8ppvs FY2024

Operating margin (FY2025)17.64%▲0.9ppvs FY2024

ROE20.52%▲5.1ppvs FY2025

Analyst consensus

RatingBuy

Target price$416.63▲25.70%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 23, 2026

Q4 FY26 · EPS est $3.36 · Revenue est $1.95B

View