Entegris (ENTG): Assessing Valuation After a 27% Share Price Decline and Ongoing Growth

Entegris (ENTG) has seen its stock decline approximately 27% over the past year, a move that stands out amid shifting sentiment in the semiconductor industry. Investors will be tracking how the company manages these recent challenges, particularly in light of its positive annual revenue and net income growth.

See our latest analysis for Entegris.

Entegris’ share price has dropped sharply in recent weeks, with a 1-month share price return of -21.43% bringing the total shareholder return for the past year to -26.88%. After several years of lackluster performance, this latest selloff suggests investor sentiment is fading further. The company continues to grow both its revenue and net income.

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With Entegris now trading well below its recent highs despite ongoing revenue and profit growth, the question becomes whether investors are overlooking an undervalued opportunity or correctly anticipating that all future upside is already built into the price.

Most Popular Narrative: 27.6% Undervalued

Entegris’ latest closing price sits well below the fair value calculated in the most widely followed narrative, hinting at significant upside if consensus assumptions play out. Instead of matching the industry average, this valuation is based on several core growth expectations and sector trends that support the optimism.

“Investments and leadership in advanced materials for next-generation nodes, including CMP slurries, selective etch, and deposition materials, position Entegris to capitalize on upcoming node transitions (such as advanced logic, 3D NAND, HBM) and increasing semiconductor complexity, supporting higher ASPs and improved gross margins.”

Read the complete narrative.

Want to know why the price target stands where it does? One critical forecast lies in the bold pace of margin expansion and a profit outlook that is more aggressive than many expect. Discover which fundamental financial bets drive this valuation and why analysts see so much upside, despite the recent stock slump.

Result: Fair Value of $100.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent global trade tensions or ongoing operational inefficiencies in new facilities could pose challenges to the optimistic outlook for Entegris in the near term.

Find out about the key risks to this Entegris narrative.

Another View: Market Ratios Raise Questions

Looking at Entegris’ current market valuation, the price-to-earnings ratio stands at 38.2x, well above both peer (28.4x) and industry (34.4x) averages. It is also higher than the fair ratio of 31.8x our analysis suggests the market could move toward. This gap could signal valuation risk. Does the optimism truly justify the premium, or could sentiment shift further?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Entegris Narrative

If you want to dig deeper or find you have a different view on Entegris’ outlook, you can assemble your own valuation and narrative in just a few minutes. Do it your way

A great starting point for your Entegris research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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