Is Keysight Technologies, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Keysight Technologies, Inc. moved from very expensive to expensive. The company is currently considered overvalued, with a P/E ratio of 44, a Price to Book Value of 5.54, and an EV to EBITDA ratio of 26.21. In comparison, peers such as Rockwell Automation, Inc. have a P/E of 57.64 and Fortive Corp. has a P/E of 19.50, indicating that Keysight's valuation is higher than some of its competitors while still being lower than others.
Despite showing positive returns in the short term, with a 1-year return of 17.97% compared to the S&P 500's 17.14%, the long-term performance is concerning, as Keysight's 5-year return of 82.50% lags behind the S&P 500's 96.61%. This suggests that while the stock has performed well recently, its valuation may not be justified given the overall market performance.