Keysight Technologies Inc (KEYS) stock analysis
Keysight Technologies Inc (KEYS) clears 3 of this site's 8 mechanical value filters, 6 of 8 Buffett-style checks and 3 of 5 Lynch-style checks. At $311.52 it trades 131.7% above this site's neutral DCF value (a margin of safety of -131.7%). Its earnings quality rates Strong and it returns +0.4% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Keysight do?
Keysight makes electronic test and measurement equipment and software that engineers use to design and test 5G, wireless, automotive and aerospace electronics.
What stands out about Keysight?
- The share price implies 29.8% yearly growth. At $311.52, KEYS's free cash flow of $7.87 per share would have to grow 29.8% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 3 of the 8 value filters. It fails Trailing P/E < 25 (46.12), Price/Book < 8 (8.84) and Price/Sales < 7 (8.83); the other 3 pass and 2 were not evaluated. See every filter.
- The margin of safety is rising. It went from -161% on Oct 7 to -132% on Oct 23 across 5 weekly readings. See the trend.
- Strongest against peers: net margin. At 19.1% (peer median 13.4%) it ranks 3rd of 19 among electrical equipment stocks this site tracks. See the ranking.
- Weakest against peers: P/E ratio. At 46.1× (peer median 34.5×) it ranks 16th of 19 among electrical equipment stocks this site tracks. See the ranking.
How has Keysight's share price moved?
The interactive price chart needs JavaScript.
Is Keysight undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -131.7%
- P/E vs. its own history 46.1x · at/above its priciest point Real range: 20.7x–42.2x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 4.16/5 19 analysts this month: 5 strong buy, 12 buy, 2 hold, 0 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 5.15 · Safe zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.56 · accruals −5.4% of assets · 153% of profit arrived as cash · stock comp 3.0% of revenue · share count −1.7% a year. From the latest 10-K (year to Oct 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +0.4% net Latest fiscal year (2025): dividends 0.0% + buybacks 0.6% − stock comp 0.3%, as a share of today's market cap. Over 12 years its split-adjusted share count rose 4%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $2.05 per $1 of new profit · FlightSafety-like · but only 21% return on capital Operating profit $53M → $1.0B, capital needed $2.9B → $4.8B, 2016–2025 (3-year averages); return on capital now 21% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 0.36 · Well under fair P/E 46.1× ÷ 129% a year of growth behind it. 26th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 2 of 4 · misses capital-light, cash back Capital-light growth: not cleared (only 21% return on capital); Profit is real: cleared; Cash to owners: not cleared (+0.6% a year net); Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 3 flags
- Standing vs. sector peers 3 of 6 measures above the median Compared with the 18 other electrical equipment stocks this site tracks: 3 in the top third, 2 in the bottom third.
How does Keysight compare with its peers?
3 of 6 measures sit above the median of the 18 other electrical equipment stocks tracked here, 3 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 34.5× 46.1× ✕16th of 19
- Free-cash-flow yieldhigher is cheaper · peer median 3.4% 2.5% ✕16th of 19
- Return on equityhigher is better · peer median 20% 20% –10th of 19
- Net marginhigher is better · peer median 13.4% 19.1% ✓3rd of 19
- Revenue growthhigher is better, year on year · peer median 13.0% 25.5% ✓4th of 19
- Debt / equitylower is safer · peer median 0.67 0.38 ✓5th of 19
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and KEYS doesn't clear enough of it yet. In its favor: KEYS is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, carries a conservative amount of debt relative to equity, converts sales into profit at healthy margins, has grown earnings per share at a solid clip over five years, and earns many times its interest expense, so debt service isn't a worry. Where it comes up short: KEYS is trading above what a conservative discounted-cash-flow estimate says it's worth right now, and trades rich relative to owner earnings, the real cash the business could pay out.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✕
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and KEYS falls short of his bar. In its favor: KEYS clears an even tighter PEG-under-1 bar he'd want for a stock growing this fast, isn't leaning on debt to fund that growth, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: KEYS is growing earnings outside the 20-50% band he considered sustainable for a fast grower - either not fast enough to earn the label, or a pace he'd flag as unlikely to hold up, and is priced above what he'd pay even for a company growing this quickly.
- PEG < 1 (stricter for fast growers) ✓
- EPS growth 20%-50% ✕
- Debt/Equity < 0.5 ✓
- P/E < 40 ✕
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Keysight pass?
- Market Cap > $25B $58.1B
- Trailing P/E < 25 46.12
- PEG Ratio < 1.5 0.36
- Price/Book < 8 8.84
- Price/Sales < 7 8.83
- EPS Growth YoY > -5% +107.9%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Keysight's margin of safety?
-161% on 2026-10-07 → -132% on 2026-10-23 (5 weekly readings).
Where is Keysight in its 52-week range?
What is the short interest in Keysight?
2,436,733 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Keysight? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case -37%
- Short interest under 5% of float 1.4%
- Passes most of the 6 fundamental filters 3/6 passed
- Price run-up backed by value, not just momentum +95% off 52wk low
- Debt/equity stable since 2016 0.72 → 0.43
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Keysight shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from KEYS's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Keysight's 10-year financials show?
From KEYS's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Keysight
What kind of company is Keysight?
Keysight makes electronic test and measurement equipment and software that engineers use to design and test 5G, wireless, automotive and aerospace electronics. This site groups it with Electrical Equipment stocks.
Is Keysight trading above or below its DCF value?
At $311.52, KEYS trades 131.7% above this site's neutral DCF value of $134.47 per share, a margin of safety of −131.7%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Keysight pass?
KEYS passes 3 of 8. It passes Market Cap > $25B ($58.1B), PEG Ratio < 1.5 (0.36) and EPS Growth YoY > -5% (+107.9%). It misses Trailing P/E < 25 (46.12), Price/Book < 8 (8.84) and Price/Sales < 7 (8.83). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
What growth is Keysight's share price pricing in?
At $311.52, KEYS's free cash flow of $7.87 per share would have to grow 29.8% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
Is Keysight's P/E ratio high or low compared with its own history?
KEYS trades at 46.1× trailing earnings. At the end of each of its last 5 fiscal years its P/E was between 20.7× and 42.2× (average 33.2×), so today's multiple is at or above the highest of those years. Each year's P/E pairs net income per diluted share from the 10-K with the closing price at that fiscal year-end.
Does Keysight raise any of Munger's inversion flags?
KEYS fails 3 of the 5 tests in this site's Munger-style inversion check, so it raises 3 flags: Margin of safety, even in the bull case (-37%); Passes most of the 6 fundamental filters (3/6 passed); and Price run-up backed by value, not just momentum (+95% off 52wk low). It passes Short interest under 5% of float and Debt/equity stable since 2016. Munger's habit was to invert the question and look for reasons to hesitate. These flags are data-driven prompts, not a verdict, and they cannot judge management, competitive position or accounting risk.
Where do these numbers come from?
- Financial statements: Keysight's 10-K annual report for the year ended Oct 31, 2025, filed Dec 17, 2025 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Keysight Technologies Inc analysis
This page shows every value-investing check the site runs on Keysight Technologies Inc (KEYS) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.