• Wondering if Agilent Technologies at around US$135.53 is offering fair value or if the stock is getting ahead of itself? This article unpacks what the current price really reflects.
• The stock has recently moved sharply, with a 17.9% gain over the last 7 days, 21.8% over the past month, 22.1% over the last year, but a slight decline of 1.8% year to date.
• These moves come as Agilent Technologies continues to attract attention in the life sciences and diagnostics space, where investors often focus closely on growth, margins, and acquisition potential. This coverage is not tied to a single headline event. Instead, it aims to put that recent share price strength into clearer context for you.
• On Simply Wall St’s 6 point valuation framework, Agilent Technologies currently scores 4 out of 6. The rest of this article will walk through the key valuation approaches behind that score, before finishing with a way to think about value that goes beyond the usual ratios.

Approach 1: Agilent Technologies Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes projected future cash flows and discounts them back to today using a required rate of return, giving an estimate of what the business could be worth right now.

For Agilent Technologies, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow stands at about $1.06b. Analyst estimates and extrapolations then project free cash flow reaching about $2.23b by 2030, with a series of annual projections between 2026 and 2035 that are discounted back to today to reflect risk and the time value of money.

On this basis, the DCF model produces an estimated intrinsic value of $173.38 per share. Compared with a recent share price around $135.53, this suggests the stock is trading at a 21.8% discount to that estimate, which indicates that Agilent Technologies stock appears undervalued on this cash flow view.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Agilent Technologies is undervalued by 21.8%. Track this in your watchlist or portfolio, or discover 46 more high quality undervalued stocks.

Approach 2: Agilent Technologies Price vs Earnings

For a profitable company like Agilent Technologies, the P/E ratio is a useful shortcut because it links what you pay for each share directly to the earnings that support that share price. Investors usually expect higher P/E ratios where they see stronger growth potential and lower perceived risk, and lower P/E ratios where growth is more modest or risks are higher.

Agilent Technologies currently trades on a P/E of 27.05x. That sits below the Life Sciences industry average P/E of 34.27x and below the peer group average of 40.47x, so on a simple comparison the stock is on a lower earnings multiple than many peers.

Simply Wall St also calculates a Fair Ratio of 22.31x for Agilent Technologies. This is a proprietary estimate of what the P/E might be based on factors such as earnings growth, profit margins, industry, market cap and company specific risks. Because it adjusts for these company level characteristics, the Fair Ratio can often be more tailored than a basic comparison with peers or industry averages. On this basis, Agilent Technologies current P/E of 27.05x sits above the Fair Ratio of 22.31x, which indicates that the stock screens as overvalued on this metric.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Agilent Technologies Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Meet Narratives, a simple tool on Simply Wall St’s Community page that lets you spell out your story for Agilent Technologies, link that story to a forecast for revenue, earnings and margins, and then see the fair value that falls out of those assumptions.

Instead of only looking at a DCF or P/E, you can choose or create a Narrative that fits how you see Agilent Technologies. For example, one investor might lean toward the higher analyst fair value of about US$185 because they focus on new diagnostic indications and buybacks, while another might sit closer to US$140 because they are more focused on tariffs, funding pressures and competition.

Each Narrative connects that story to numbers, compares the resulting fair value with today’s share price to help you decide whether the stock looks attractive or stretched for you, and then keeps updating when new earnings, news or other data arrives so your view can evolve without you rebuilding everything from scratch.

Do you think there's more to the story for Agilent Technologies? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.