- This article examines whether Entegris, at around US$118 per share, is currently priced for perfection or still offers value by exploring what the market price may be implying.
- The stock has recent returns of 1.1% over 7 days, 5.4% over 30 days, 32.4% year to date and 89.2% over the past year, which can influence how investors think about both upside potential and risk.
- Recent coverage of Entegris has focused on its role as a key supplier within the semiconductor supply chain and on how that positioning can influence longer term expectations for demand and capital investment. These themes offer useful context when considering how investors are currently pricing growth, profitability and balance sheet strength.
- Despite these strong recent returns, Entegris has a valuation score of 0 out of 6. The next sections will therefore compare different valuation methods and then conclude with a broader framework that can help you assess whether the share price aligns with the company’s story.
Entegris scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: Entegris Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model estimates what a company might be worth today by projecting future cash flows and discounting them back to the present using a required return. It focuses on cash generated for shareholders rather than accounting earnings.
For Entegris, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $351.5 million. Analyst estimates and subsequent extrapolations by Simply Wall St project annual free cash flow rising to $850.3 million in 2030, with intermediate yearly projections between those points.
Feeding these projections into the DCF model results in an estimated intrinsic value of about $65.32 per share. Compared with a recent share price around $118, the model implies the stock is roughly 81.5% above this intrinsic value estimate. This suggests a rich valuation based on these cash flow assumptions.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Entegris may be overvalued by 81.5%. Discover 61 high quality undervalued stocks or create your own screener to find better value opportunities.
Approach 2: Entegris Price vs Earnings
For profitable companies, the P/E ratio is a useful way to relate what you pay for each share to the earnings that company is currently generating. It gives you a quick sense of how many dollars investors are willing to pay today for one dollar of current earnings.
What feels like a “normal” or “fair” P/E usually reflects two things: how quickly earnings are expected to grow, and how much risk investors see in those earnings. Higher growth and lower perceived risk often support higher P/E levels, while slower growth or higher uncertainty generally line up with lower multiples.
Entegris currently trades on a P/E of about 76.5x, compared with an average of 36.3x for the broader Semiconductor industry and around 50.4x for its peer group. Simply Wall St’s Fair Ratio for Entegris is 37.3x, which is a proprietary estimate of what the P/E “should” be given factors such as earnings growth, profit margins, industry, company size, and specific risks. This Fair Ratio can be more informative than a simple peer or industry comparison because it adjusts for these company level characteristics rather than assuming all firms deserve similar valuations. Relative to this Fair Ratio, Entegris’ current P/E suggests the stock is pricing in a richer valuation.
Result: OVERVALUED
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Upgrade Your Decision Making: Choose your Entegris Narrative
Earlier it was mentioned that there is an even better way to understand valuation. Narratives is a simple feature on Simply Wall St’s Community page that allows you to connect your view of Entegris’s story with a set of revenue, earnings and margin estimates. These estimates roll up into a Fair Value, which you can then compare with the current share price and keep updated as new earnings or news arrive. This lets you see, for example, how one Entegris Narrative might lean toward the more pessimistic fair value of about US$95, while another leans toward the optimistic fair value of about US$155. You can then decide which story and price range best matches your own expectations.
For Entegris however we will make it really easy for you with previews of two leading Entegris Narratives:
Each one shows a different way to connect the current share price around US$118.55 to future earnings, margins and risks, so you can decide which story feels closer to your own view.
Fair value used in this bullish narrative: US$155.00
Implied discount to this fair value at US$118.55: about 23.5% undervalued
Revenue growth assumption: 9.89% a year
- Assumes Entegris benefits from multiyear growth in advanced semiconductor manufacturing tied to AI, 5G, automotive electronics and IoT, with higher content per wafer and expanding high margin consumables revenue.
- Relies on a global, locally anchored manufacturing base and new product wins in areas like molybdenum deposition and advanced wet chemistries to support higher margins and resilience against supply chain and tariff shocks.
- Targets earnings of US$563.5m by about 2029 and a future P/E of 58.6x, and treats US$155 as a fair value if those earnings, margin and risk assumptions play out.
Fair value used in this bearish narrative: US$106.46
Implied premium to this fair value at US$118.55: about 11.4% overvalued
Revenue growth assumption: 4.56% a year
- Focuses on geopolitical tension, tariffs and tighter regulation, especially in China, as potential long lasting headwinds for revenue, margin stability and market access.
- Highlights risks from slower wafer fab construction, cyclicality in semiconductor capital spending, pricing pressure and possible product commoditisation that could cap earnings and compress multiples.
- Builds to a fair value around US$106.46 based on lower revenue growth, higher long term margin assumptions but a future P/E of 42.9x, and treats the current price as already reflecting optimistic expectations.
These two narratives bracket a fair value range and show how different assumptions about growth, profitability, risk and future P/E can lead to very different conclusions about whether the current price feels demanding or reasonable.
If you want to weigh more than just these two viewpoints and see how other investors are joining the debate, To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Entegris on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
Do you think there's more to the story for Entegris? Head over to our Community to see what others are saying!
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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