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DCF valuation

What is Keysight Technologies, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Keysight Technologies, Inc.'s reported free cash flow gives $136.97 per share. The share price was $362.15 on September 25, 2026, 164% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$1.28B
Average free cash flow, last 5 years
$1.1B
Cash
$2.61B
balance sheet of July 31, 2026
Debt
$2.52B
balance sheet of July 31, 2026
Diluted shares, fiscal 2025
173,000,000
Revenue growth per year, last 5 years
5.0%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear0.0%1.0%2.0%10.0%$84.76-77%
Base5.0%4.0%2.5%9.0%$136.97-62%
Bull10.0%6.5%3.0%8.0%$234.46-35%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$174.33$185.70$199.60$216.97$239.31
8.0%$146.48$153.85$162.57$173.03$185.81
9.0%$126.11$131.15$136.97$143.76$151.78
10.0%$110.59$114.17$118.24$122.88$128.24
11.0%$98.37$101.00$103.94$107.24$110.99

Where the presets come from

Base: years 1 to 5 grow at Keysight Technologies, Inc.'s revenue growth rate over the last 5 fiscal years (5.0% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Keysight Technologies, Inc. company page