Keysight Technologies (KEYS): Evaluating Valuation After New EV Test and Wireless Simulation Platform Launches

Keysight Technologies (KEYS) recently launched new end-of-line test platforms supporting electric vehicle manufacturing, directly tackling challenges in standardization and system integration. Combined with new wireless simulation offerings, these moves highlight Keysight’s broad innovation across high-growth technology sectors.

See our latest analysis for Keysight Technologies.

Keysight has been busy this year, pushing out new solutions for both EV production and next-generation wireless. The company’s 1-year total shareholder return stands at 13.3%, signaling momentum is building as investors increasingly recognize its leadership in fast-growing tech and automotive markets.

If transformative moves in EV and wireless caught your attention, it’s worth checking out the latest innovations among automakers. See who’s driving the industry forward with our See the full list for free.

That leads to the pressing question for investors: with Keysight’s stock trending higher on robust innovation and strong financials, is there real upside left, or has the market already priced in those future growth prospects?

Most Popular Narrative: 6.6% Undervalued

The current narrative sees Keysight Technologies' fair value at $187.60, a premium compared to the last close at $175.16. This difference is grounded in a thesis of accelerating growth and expanding margins, inviting a closer look into what’s powering this optimism.

“Early engagement and leadership in next-generation wireless technologies, such as ongoing 5G-Advanced deployments, direct-to-cell, non-terrestrial networks, and active participation in 6G research, position Keysight to capture significant share as new wireless standards roll out globally, supporting future revenue growth and a stable order outlook.”

Read the complete narrative.

Curious which financial levers are set to catapult Keysight’s worth above today’s price? The answer hinges on ambitious assumptions for revenue expansion, profit margins, and a bold future earnings multiple. Discover how these shape one of the market’s more bullish narratives.

Result: Fair Value of $187.60 (UNDERVALUED)

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

However, rising tariffs and shifts in AI infrastructure investment patterns could challenge the bullish outlook and slow Keysight's anticipated margin and revenue growth.

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

Another Perspective: Premium Valuation Signals Caution

Looking at Keysight through the lens of price-to-earnings, there is a stark contrast to the bullish narrative. The company's P/E ratio stands at 55.3x, which is notably higher than both the industry average of 24.3x and the peer average of 47.1x. Even compared to its estimated fair ratio of 32.4x, Keysight's valuation appears stretched. This premium suggests investors are pricing in a lot of future growth, but it also raises questions about how much room is left for upside and whether risks are fully accounted for.

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

Build Your Own Keysight Technologies Narrative

If you want to dive deeper or take a different approach, you can build your own Keysight narrative in just a few minutes. Do it your way

A great starting point for your Keysight Technologies research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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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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