Assessing Agilent Technologies's (A) Valuation After New CFO Appointment and Ahead of Earnings

Agilent Technologies is shaking up its finance leadership at an interesting time, with Adam S. Elinoff set to become the company’s new CFO just as investors await fresh quarterly results. Elinoff arrives from Amgen, bringing deep industry expertise and a history of driving operational improvements. This background may lend an extra layer of momentum to Agilent’s push in life-sciences and diagnostics.

See our latest analysis for Agilent Technologies.

Agilent Technologies' latest leadership appointment comes amid a period of renewed optimism for shareholders. A 28.95% share price return over the last 90 days points to building momentum. While the one-year total shareholder return sits at 7.80%, it is the recent price gains and continued strength in the company’s core diagnostics business that have investors watching closely for what’s ahead, particularly as quarterly earnings approach.

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With shares rallying ahead of earnings and analyst targets within reach, the question remains: is Agilent still undervalued, or are investors already pricing in the company’s next wave of growth?

Most Popular Narrative: 1.5% Undervalued

Agilent Technologies’ most widely followed narrative sees a fair value just above its last close, hinting at modest upside left. This sets the stage for a closer look into the assumptions powering that outlook.

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.

Why are analysts confident in Agilent’s pricing power? The answer lies in a future fueled by premium products and margin-boosting recurring revenue. The math behind this story involves growth rates and operating leverage you’ll want to see for yourself.

Result: Fair Value of $148.57 (UNDERVALUED)

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

However, rising tariffs and tightening government research budgets could squeeze margins and dampen Agilent’s expected revenue growth. This may challenge the current optimism.

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

Another View: Our DCF Model Weighs In

Taking a look through the lens of our SWS DCF model, Agilent’s share price of $146.36 sits above our estimated fair value of $97.06. This suggests the stock might be overvalued based on future cash flows, raising an open question about how long current optimism can last if growth lags behind expectations.

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 832 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Agilent Technologies Narrative

If you see Agilent’s story differently or prefer to dig into the numbers yourself, you can craft your own perspective in just a few minutes with our Do it your way.

A good starting point is our analysis highlighting 2 key rewards 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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