Is Agilent Technologies Inc (A) overvalued?
On Equity Rank's model estimate, A trades 44% above its fair value. Agilent Technologies Inc (A) last closed at $174.76; the multi-method model fair value is $121.40.
| Price | Model fair value | Price vs model |
|---|---|---|
| $174.76 | $121.40 | 44% above |
What the answer rests on
- 1 of 9 valuation methods put A's value above its price and 8 put it below, so the methods mostly agree.
- To justify today's price, A's free cash flow would need to grow about 19.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 4.1% a year.
- A trades at 34.6 times its last year's earnings, against a median of 38.3 for 26 profitable Life Sciences Tools companies.
- Over the past year the price sat below the model fair value on 9% of trading days. The gap ranged from 7% below to 47% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind A's fair value · What prices assume · Other companies