Based on the provided data and recent analyst reports, here's a comprehensive analysis of whether KEYS is overvalued:
KEYS is currently trading at reasonable valuation levels compared to historical averages. The stock's Q4 2024 P/E ratio of 42.47 appears high, but this is partially justified by the company's strong market position in electronic design and test solutions.
Recent analyst consensus strongly supports KEYS with a "Strong Buy" rating, with 9 out of 11 analysts giving it their highest rating. JPMorgan's December 16th upgrade to Buy with a $200 price target suggests significant upside potential of 17%.
The company's Q4 earnings beat expectations with $1.50 EPS, outpacing consensus by 6.4%, demonstrating operational strength despite challenging market conditions. Additionally, orders increased 1.4% year-over-year with 8% sequential growth, driven by AI strength and strong aerospace/defense bookings.
With projected fiscal 2025 EPS of $6.51, representing a 19.7% growth from 2024, KEYS appears fairly valued at current levels considering its market leadership position and growth prospects in AI and defense sectors.