Definitive Analysis
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Agilent Technologies, Inc. (A)

Company Dividend Discount ModelIndustry: Medical - Diagnostics & ResearchSector: Healthcare

Valuation Snapshot

Stable Growth$68.56 - $126.70$92.45
Multi-Stage$67.05 - $73.37$70.15
Blended Fair Value$81.30
Current Price$146.36
Upside-44.45%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS4.90%7.81%0.990.960.930.880.830.780.720.670.600.53
YoY Growth--2.92%3.40%6.00%5.93%6.31%7.77%7.85%12.35%13.33%12.78%
Dividend Yield--0.68%0.63%0.71%0.58%0.59%0.64%0.87%0.88%0.81%1.07%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,303.00
(-) Cash Dividends Paid (M)282.00
(=) Cash Retained (M)1,021.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)260.60162.8897.73
Cash Retained (M)1,021.001,021.001,021.00
(-) Cash Required (M)-260.60-162.88-97.73
(=) Excess Retained (M)760.40858.13923.28
(/) Shares Outstanding (M)285.25285.25285.25
(=) Excess Retained per Share2.673.013.24
LTM Dividend per Share0.990.990.99
(+) Excess Retained per Share2.673.013.24
(=) Adjusted Dividend3.654.004.23
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.58%4.58%5.58%
Fair Value$68.56$92.45$126.70
Upside / Downside-53.16%-36.83%-13.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,303.001,362.641,425.011,490.231,558.441,629.771,678.66
Payout Ratio21.64%35.31%48.99%62.66%76.33%90.00%92.50%
Projected Dividends (M)282.00481.20698.05933.731,189.531,466.791,552.76

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.58%4.58%5.58%
Year 1 PV (M)436.85441.07445.29
Year 2 PV (M)575.31586.48597.75
Year 3 PV (M)698.64719.07739.90
Year 4 PV (M)808.01839.67872.25
Year 5 PV (M)904.52949.04995.29
PV of Terminal Value (M)15,702.5016,475.2917,278.21
Equity Value (M)19,125.8420,010.6220,928.68
Shares Outstanding (M)285.25285.25285.25
Fair Value$67.05$70.15$73.37
Upside / Downside-54.19%-52.07%-49.87%

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