Agilent Technologies

Methodology

Agilent's life sciences tools business generates stable recurring revenue from consumables and service contracts, making this calculation relatively reliable. The razor-and-blade model with instrument placements followed by consumable sales provides earnings predictability. However, biopharma funding cycles can create temporary volatility that causes market prices to deviate from calculated fair values.

Methodology

Agilent typically commands premium PEG ratios reflecting its recurring revenue model and exposure to secular life sciences research growth. The company's business combines equipment sales with high-margin consumables, providing more predictable growth than pure capital equipment makers. Compare to peers like Thermo Fisher and Danaher to assess relative valuation within life sciences tools.

Methodology

With minimal dividend yield, PEGY essentially equals PEG for Agilent since management prioritizes reinvestment in R&D and strategic acquisitions. The company balances modest dividends with share buybacks. For this growth-oriented life sciences company, focus on operating margin expansion and market share gains matters more than yield-adjusted metrics.