Agilent Technologies (A): Examining Valuation After Recent Share Price Rally

Agilent Technologies (A) shares have edged up about 4% over the past month, catching the eye of investors interested in life sciences and diagnostics. Recent momentum has prompted some to revisit the company’s valuation and growth trajectory.

See our latest analysis for Agilent Technologies.

With the share price up over 24% in the past 90 days, Agilent Technologies is certainly showing renewed momentum. Looking at the bigger picture, its 1-year total shareholder return stands at nearly 14%, reminding investors that performance has rebounded after a sluggish multi-year stretch.

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The real question is whether Agilent Technologies' recent rally leaves the stock undervalued or if the latest gains reflect an optimistic market that has already priced in the company’s future growth. Is there still real upside for investors?

Most Popular Narrative: Fairly Valued

Taking the most closely tracked narrative as a reference point, Agilent Technologies' fair value is pegged at $152.33, almost perfectly aligning with its latest closing price of $151.25. This razor-thin gap suggests the market's current pricing is closely mirroring the expectations found in the consensus outlook, inviting investors to weigh the assumptions behind this equilibrium.

Strategic investments in higher-margin recurring revenue streams, including consumables, software, services, and digital platforms, are gaining traction. CrossLab and services are delivering consistent mid-single-digit growth and high customer satisfaction, indicating further margin expansion and greater earnings stability in future periods.

Read the complete narrative.

Want to know why this outlook could hold firm in the years ahead? The valuation hinges on steady gains from fast-growing revenue streams and ambitious improvements in profitability, factors within industry dynamics that might surprise you. Find out which core financial bets tip the scales behind this fair value.

Result: Fair Value of $152.33 (ABOUT RIGHT)

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

However, persistent funding pressures in academic research and rising global tariffs remain key risks that could affect the long-term growth outlook for Agilent Technologies.

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

Another View: Multiples Comparison Raises Questions

Looking at valuation through the lens of earnings multiples, Agilent Technologies trades at 35.1 times earnings, just below the peer average of 35.3, but notably higher than the industry average of 34.9 and above the fair ratio estimate of 24.2. This premium suggests investors are counting on further growth or stability. Does paying up today risk being caught if market sentiment shifts?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Agilent Technologies Narrative

If you think another story is taking shape or want to dig into the data yourself, it’s easy to craft your own view in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Agilent Technologies.

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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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