Is Keysight Technologies, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Keysight Technologies, Inc. has moved from very expensive to expensive. The company appears to be overvalued based on its current valuation metrics. The P/E ratio stands at 44, significantly higher than peers such as Rockwell Automation, Inc. with a P/E of 57.64 and Fortive Corp. at 19.50. Additionally, Keysight's EV to EBITDA ratio is 26.21, which also exceeds the industry average, indicating a premium valuation compared to its competitors.
In terms of returns, Keysight has underperformed relative to the S&P 500 over the longer term, with a 5-year return of 60.10% compared to the S&P's 91.73%. This disparity in performance, coupled with high valuation ratios, reinforces the conclusion that Keysight Technologies, Inc. is overvalued in the current market.