MeritValue

AGILENT TECHNOLOGIES, INC.

Adata completeness 100%19 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'

The thesis, from the filings

AGILENT TECHNOLOGIES, INC. earns about 17% on invested capital, comfortably above its ~9% cost of capital, and has bought back 7% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $45.17 and $131.86 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$6.32B1$6.85B2$6.83B3$6.51B3$6.95B3
Net income$1.21B4$1.25B5$1.24B6$1.29B6$1.3B6
Operating cash flow$1.49B7$1.31B8$1.77B9$1.75B9$1.56B9
Capital expenditure$188M10$291M11$298M12$378M12$407M12
Free cash flow (derived)$1.3B7$1.02B8$1.47B9$1.37B9$1.15B9
Total debt$5.46B13$2.77B14$2.74B15$3.39B16$3.35B16
Cash & equivalents$1.48B17$1.05B18$1.59B19$1.33B19$1.79B19
Diluted shares307.0M300.0M296.0M291.0M285.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$236.53
your share of equity
Profit it earned you last year
$45.72
Free cash flow it threw off
$40.42
Debt you’d be carrying
$117.68

10 shares is a claim on $236.53 of net worth that earned you $45.72 and generated $40.42 of cash last year, against $117.68 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 5y
FY21 14%FY22 19%FY23 19%FY24 17%FY25 17%

It earned about 17% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
−7% shares · 5y

Share count is down 7% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 39% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $45.17 and $131.86 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$131.86
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth10.4%
  • fcfBase$1.37B
DCF · Growth Exit 5Y
$100.11
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth10.4%
  • fcfBase$1.37B
Earnings Power Value
$45.17
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.25B
  • growthAssumed0.0%
Graham Number
$49.49
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years10.4%
Discount rate (WACC)9.02%
Terminal growth2.5%
At your growth, a share is worth $100.11
The three cases
Bear0.0%$62.43
Base10.4%$100.11
Bull15.4%$123.74

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 10.4%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-10-31 · accession 0001090872-23-000020 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-10-31 · accession 0001090872-24-000049 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-10-31 · accession 0001090872-25-000087 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-10-31 · accession 0001090872-23-000020 (NetIncomeLoss)
  5. 10-K · period ending 2022-10-31 · accession 0001090872-24-000049 (NetIncomeLoss)
  6. 10-K · period ending 2023-10-31 · accession 0001090872-25-000087 (NetIncomeLoss)
  7. 10-K · period ending 2021-10-31 · accession 0001090872-23-000020 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-10-31 · accession 0001090872-24-000049 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-10-31 · accession 0001090872-25-000087 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-10-31 · accession 0001090872-23-000020 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-10-31 · accession 0001090872-24-000049 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-10-31 · accession 0001090872-25-000087 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-10-31 · accession 0001090872-21-000027 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-10-31 · accession 0001090872-23-000020 (LongTermDebt)
  15. 10-K · period ending 2023-10-31 · accession 0001090872-24-000049 (LongTermDebt)
  16. 10-K · period ending 2024-10-31 · accession 0001090872-25-000087 (LongTermDebt)
  17. 10-K · period ending 2021-10-31 · accession 0001090872-23-000020 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-10-31 · accession 0001090872-24-000049 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-10-31 · accession 0001090872-25-000087 (CashAndCashEquivalentsAtCarryingValue)