Assessing Agilent Technologies (A) Valuation As Earnings Approach And New FDA Diagnostic Approval Draws Interest

Investor focus on Agilent Technologies (A) is picking up as the life sciences tools company heads into its upcoming earnings report, with attention also on fresh FDA approval for its PD-L1 IHC 22C3 pharmDx companion diagnostic.

See our latest analysis for Agilent Technologies.

At a share price of $124.20, Agilent’s recent 1 day share price gain contrasts with a 30 day share price return of 8.03% decline and a 1 year total shareholder return of 7.45% decline. This suggests momentum has softened despite fresh FDA news and an upcoming earnings update.

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With the share price well below analysts’ average target and the stock coming off a year of negative returns despite ongoing revenue and net income growth, you have to ask: Is this a reset level, or is the market already pricing in future growth?

Most Popular Narrative: 26.8% Undervalued

Agilent’s most followed narrative sets a fair value of $169.67 against the last close of $124.20, framing a sizable valuation gap tied to future earnings power and margin assumptions.

Strategic investments in higher margin recurring revenue streams, including consumables, software, services, and digital platforms, are gaining traction, with CrossLab and services delivering consistent mid single digit growth and high customer satisfaction, indicating further margin expansion and greater earnings stability in future periods. Agilent's Ignite enterprise operating model is already delivering material cost savings (double digit reductions in key categories) and operational efficiencies, while ongoing global supply chain reorganization and targeted pricing actions are expected to fully offset tariff related margin headwinds by FY2026, underpinning future operating margin improvements.

Read the complete narrative.

Curious how recurring revenue, rising margins and a lower future P/E all combine into that $169.67 fair value? The narrative links steady growth, richer profitability and a compressed multiple, then runs it through a 7.97% discount rate to land on that figure.

Result: Fair Value of $169.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to keep an eye on tariff related cost pressures and any slowdown in lab equipment replacement cycles, as either could quickly weaken this upbeat setup.

Find out about the key risks to this Agilent Technologies narrative.

Another View: DCF Points The Other Way

While the popular narrative leans on a $169.67 fair value, our DCF model comes out closer to $116.64 per share, which is below the current $124.20 price. On that math, Agilent screens as overvalued, not undervalued. Which story do you think fits better with your own assumptions?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Agilent Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 56 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of signals feels split, that is the point. Move quickly to check the underlying data and see whether the rewards stack up for you, starting with 4 key rewards.

Looking for more investment ideas?

If Agilent has sharpened your thinking, do not stop here; broaden your watchlist with focused stock ideas that could fit different roles in your portfolio.

• Target resilience by checking our 80 resilient stocks with low risk scores, which highlights companies with lower risk scores for investors who want steadier rides.
• Hunt for potential bargains through the 56 high quality undervalued stocks, which surfaces companies combining quality fundamentals with prices that may sit below their estimated worth.
• Add a quality tilt by scanning the solid balance sheet and fundamentals stocks screener (42 results), which spotlights businesses with stronger financial footing and cleaner balance sheets.

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.

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