Latest Ratios: P/E Ratio 63.3x · EV/EBITDA 44.2x · ROE 15.4%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $53.0B | $31.7B | $26.1B | $21.8B | $31.7B | $33.7B | $19.8B | $19.3B | $10.9B | $8.1B | $5.6B |
| Enterprise Value | $54.1B | $32.8B | $26.3B | $21.4B | $31.7B | $33.6B | $20.0B | $19.5B | $11.8B | $9.4B | $6.0B |
| P/E Ratio → | 63.34 | 37.49 | 42.45 | 20.65 | 28.18 | 37.66 | 31.59 | 31.05 | 66.37 | 79.77 | 16.82 |
| P/S Ratio | 9.86 | 5.89 | 5.24 | 4.00 | 5.85 | 6.81 | 4.70 | 4.48 | 2.81 | 2.55 | 1.93 |
| P/B Ratio | 9.10 | 5.39 | 5.11 | 4.69 | 7.62 | 8.90 | 6.01 | 6.42 | 4.48 | 3.52 | 3.74 |
| P/FCF | 41.39 | 24.71 | 29.04 | 18.03 | 33.05 | 29.32 | 22.05 | 21.95 | 25.77 | 33.73 | 17.36 |
| P/OCF | 37.63 | 22.46 | 24.79 | 15.52 | 27.71 | 25.46 | 19.51 | 19.31 | 19.64 | 25.97 | 13.56 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.09 | 5.28 | 3.92 | 5.84 | 6.81 | 4.75 | 4.52 | 3.04 | 2.94 | 2.04 |
| EV / EBITDA | 44.25 | 26.78 | 23.85 | 13.63 | 20.34 | 24.50 | 18.37 | 19.10 | — | 25.09 | 11.03 |
| EV / EBIT | 57.08 | 28.48 | 27.72 | 14.91 | 23.22 | 30.89 | 23.89 | 24.48 | — | 36.14 | 14.43 |
| EV / FCF | — | 25.57 | 29.30 | 17.66 | 33.03 | 29.30 | 22.30 | 22.17 | 27.85 | 38.84 | 18.33 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 62.1% | 62.1% | 62.9% | 64.6% | 63.7% | 62.1% | 60.0% | 58.9% | 54.4% | 53.2% | 55.7% |
| Operating Margin | 17.6% | 17.6% | 16.7% | 24.9% | 24.6% | 21.9% | 18.1% | 16.5% | -10.2% | 4.6% | 13.9% |
| Net Profit Margin | 15.7% | 15.7% | 12.3% | 19.3% | 20.7% | 18.1% | 14.9% | 14.4% | 4.3% | 3.2% | 11.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.4% | 15.4% | 12.6% | 24.0% | 28.3% | 25.3% | 19.9% | 22.8% | 7.0% | 5.3% | 23.8% |
| ROA | 8.2% | 8.2% | 6.8% | 12.6% | 14.2% | 11.9% | 9.1% | 10.0% | 2.8% | 2.1% | 9.2% |
| ROIC | 11.5% | 11.5% | 13.1% | 24.4% | 25.4% | 22.3% | 17.1% | 16.4% | -8.6% | 4.1% | 16.3% |
| ROCE | 11.0% | 11.0% | 11.5% | 20.4% | 20.3% | 17.1% | 13.0% | 14.2% | -8.3% | 3.6% | 13.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.51 | 0.51 | 0.40 | 0.44 | 0.48 | 0.53 | 0.60 | 0.60 | 0.74 | 0.89 | 0.72 |
| Debt / EBITDA | 2.43 | 2.43 | 1.84 | 1.29 | 1.30 | 1.47 | 1.82 | 1.75 | — | 5.49 | 2.02 |
| Net Debt / Equity | — | 0.19 | 0.05 | -0.10 | -0.01 | -0.01 | 0.07 | 0.06 | 0.36 | 0.53 | 0.21 |
| Net Debt / EBITDA | 0.90 | 0.90 | 0.21 | -0.28 | -0.02 | -0.02 | 0.21 | 0.19 | — | 3.30 | 0.59 |
| Debt / FCF | — | 0.86 | 0.26 | -0.37 | -0.03 | -0.03 | 0.25 | 0.22 | 2.07 | 5.10 | 0.98 |
| Interest Coverage | 11.98 | 11.98 | 11.30 | 18.40 | 17.27 | 13.78 | 10.76 | 9.94 | -3.95 | 3.24 | 8.79 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.35 | 2.35 | 2.98 | 2.35 | 3.01 | 2.93 | 3.12 | 3.21 | 1.63 | 2.66 | 2.88 |
| Quick Ratio | 1.78 | 1.78 | 2.27 | 1.87 | 2.40 | 2.34 | 2.42 | 2.50 | 1.20 | 1.94 | 2.14 |
| Cash Ratio | 1.01 | 1.01 | 1.26 | 1.21 | 1.45 | 1.57 | 1.62 | 1.59 | 0.62 | 1.00 | 1.22 |
| Asset Turnover | — | 0.48 | 0.54 | 0.63 | 0.67 | 0.64 | 0.58 | 0.65 | 0.67 | 0.54 | 0.77 |
| Inventory Turnover | 1.94 | 1.94 | 1.81 | 1.96 | 2.30 | 2.41 | 2.23 | 2.51 | 2.85 | 2.54 | 2.73 |
| Days Sales Outstanding | — | 63.76 | 72.94 | 63.06 | 60.95 | 54.30 | 52.40 | 56.66 | 58.73 | 62.61 | 54.66 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.6% | 2.7% | 2.4% | 4.8% | 3.5% | 2.7% | 3.2% | 3.2% | 1.5% | 1.3% | 5.9% |
| FCF Yield | 2.4% | 4.0% | 3.4% | 5.5% | 3.0% | 3.4% | 4.5% | 4.6% | 3.9% | 3.0% | 5.8% |
| Buyback Yield | 0.7% | 1.2% | 1.7% | 3.2% | 2.7% | 2.0% | 2.1% | 0.8% | 1.1% | 0.0% | 1.1% |
| Total Shareholder Yield | 0.7% | 1.2% | 1.7% | 3.2% | 2.7% | 2.0% | 2.1% | 0.8% | 1.1% | 0.0% | 1.1% |
| Shares Outstanding | — | $173M | $175M | $179M | $182M | $187M | $189M | $191M | $191M | $182M | $172M |
Geopolitical Export Control Exposure
According to recent market data, Keysight trades at a trailing P/E of 68.35, which significantly exceeds the valuation multiples of its industrial peers, suggesting that investors are pricing in a high-growth trajectory driven by the company's transition toward recurring software-led revenue streams and specialized R&D testing solutions.
The current forward P/E of 32.78 implies that the market anticipates a substantial earnings expansion, likely tied to the successful integration of recent acquisitions like ESI Group. While this valuation appears rich compared to traditional hardware manufacturers, it may be justified if the company continues to capture a larger share of the high-frequency testing market through its proprietary software-hardware ecosystem.
Based on reported financial statements, Keysight's ROIC has fluctuated between 2.5% and 4.5% over the last ten quarters, a performance that appears relatively muted given the company's high gross margins and suggests that significant capital is currently tied up in non-performing assets or recent strategic investments.
The divergence between strong gross margins and lower ROIC indicates that the company's heavy investment in R&D and acquisition-related goodwill may be suppressing short-term returns on capital. Investors should monitor whether the shift toward software-as-a-service models can eventually drive a more meaningful expansion in capital efficiency as the asset base matures.
As indicated by the company's quarterly filings, the cash conversion cycle has remained elevated, reaching 162 days in 2026Q2, which reflects the inherent friction of managing long-lead-time hardware manufacturing alongside complex, multi-year software service contracts that characterize the firm's current operational model.
The high days inventory outstanding, which peaked above 200 days in recent periods, suggests that Keysight maintains significant buffer stocks to mitigate supply chain risks for specialized components. While this provides operational resilience, it also ties up substantial liquidity that could otherwise be deployed toward share repurchases or further strategic M&A.
The most commonly misapplied ratio for Keysight is the traditional EV/Sales multiple, which fails to account for the company's evolving revenue mix where high-margin software subscriptions are increasingly replacing transactional hardware sales, thereby obscuring the true underlying profitability and long-term value of the firm's recurring revenue base.
Analysts often treat Keysight as a pure-play cyclical hardware vendor, which leads to an underestimation of the company's pricing power and the stickiness of its customer relationships. A more appropriate approach would involve adjusting valuation models to reflect the higher quality and predictability of the software-driven revenue components, which warrant a higher multiple than standard industrial equipment.
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying KEYS stock.
Keysight Technologies, Inc.'s current P/E ratio is 63.3x. The historical average is 34.7x. This places it at the 83th percentile of its historical range.
Keysight Technologies, Inc.'s current EV/EBITDA is 44.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.6x.
Keysight Technologies, Inc.'s return on equity (ROE) is 15.4%. The historical average is 26.7%.
Based on historical data, Keysight Technologies, Inc. is trading at a P/E of 63.3x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Keysight Technologies, Inc. has 62.1% gross margin and 17.6% operating margin. Operating margin between 10-20% is typical for established companies.
Keysight Technologies, Inc.'s Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.