A
Agilent Technologies, Inc.
$134.29
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 40.7% above fair value
You pay
$134.29
Bear
$76.37
Fair
$95.47
Bull
$114.56
Bear
$76.37
-43.1%
$4.71 × 12x P/E
Fair
$95.47
-28.9%
$4.71 × 15x P/E
Bull
$114.56
-14.7%
$4.71 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
28.5x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $153.25 from 41 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $95.47 per share.
Warnings
Dividend-based valuation: $27.90 (below our primary estimate by 61%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $153.25 (from 41 analysts). Our estimate is 54% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples