Discounted Cash Flow

Keysight Technologies, Inc.

KEYS · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $2.9b $335.0m $325.0m 11.5% $1.97
2017 $3.2b (9.3%) $102.0m (-69.6%) $241.0m (-25.8%) 3.2% (-72.1%) $0.57 (-71.1%)
2018 $3.9b (21.6%) $165.0m (61.8%) $423.0m (75.5%) 4.3% (33.0%) $0.88 (54.4%)
2019 $4.3b (11.0%) $621.0m (276.4%) $878.0m (107.6%) 14.4% (239.2%) $3.31 (276.1%)
2020 $4.2b (-1.9%) $627.0m (1.0%) $899.0m (2.4%) 14.9% (2.9%) $3.35 (1.2%)
2021 $4.9b (17.1%) $894.0m (42.6%) $1.1b (27.7%) 18.1% (21.8%) $4.84 (44.5%)
2022 $5.4b (9.7%) $1.1b (25.7%) $959.0m (-16.5%) 20.7% (14.6%) $6.23 (28.7%)
2023 $5.5b (0.8%) $1.1b (-6.0%) $1.2b (26.4%) 19.3% (-6.7%) $5.95 (-4.5%)
2024 $5.0b (-8.9%) $614.0m (-41.9%) $898.0m (-25.9%) 12.3% (-36.3%) $3.53 (-40.7%)
2025 $5.4b (8.0%) $850.0m (38.4%) $1.3b (42.7%) 15.8% (28.2%) $4.93 (39.7%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model