Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Agilent Technologies, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 6.4% to 5.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 73, DPO 60, DIO 114). At a 7.5% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 17.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $122.39 per share, suggesting A is fairly valued by 7.5% at the current price of $113.80.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1,518 | 1,611 | 1,715 | 1,807 | 1,900 | 1,947 |
| (−) Net Interest | 103 | 110 | 117 | 123 | 129 | 133 |
| (+) D&A | 313 | 344 | 358 | 377 | 383 | 393 |
| EBITDA | 1,934 | 2,064 | 2,190 | 2,307 | 2,412 | 2,472 |
| (−) Tax | 181 | 192 | 204 | 215 | 226 | — |
| (−) CapEx | 344 | 365 | 389 | 410 | 431 | — |
| (−) ΔWC | 49 | 122 | 137 | 121 | 121 | — |
| Free Cash Flow (FCF) | 1,360 | 1,385 | 1,460 | 1,561 | 1,634 | — |
| Peers' EBITDA Multiple | 17.6x | |||||
| Terminal Value | 43,387 | |||||
| WACC / Discount Rate | 7.54% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 1,311 | 1,242 | 1,218 | 1,210 | 1,178 | 30,160 |
| Enterprise Value | 36,319 | |||||
| Projection Period | 6,159 | 17.0% | ||||
| Terminal Value | 30,160 | 83.0% | ||||
| (−) Current Net Debt | 1,565 | |||||
| Equity Value | 34,754 | |||||
| (÷) Outstanding Shares | 284M | |||||
| Fair Price | $122 | +7.5% | ||||
| WACC \ EV/EBITDA Exit Multiple | 13.6x | 15.6x | 17.6x | 19.6x | 21.6x |
|---|---|---|---|---|---|
| 5.5% | $107 | $121 | $134 | $147 | $160 |
| 6.5% | $103 | $115 | $128 | $141 | $153 |
| 7.5% | $98 | $110 | $122 | $134 | $147 |
| 8.5% | $94 | $106 | $117 | $129 | $140 |
| 9.5% | $90 | $101 | $112 | $123 | $134 |
Current price: $113.80. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.