Entegris (ENTG): Evaluating Valuation After Fresh U.S.-China Tariff Uncertainty Hits Semiconductor Sector

Recent tariff threats between the U.S. and China have stirred up uncertainty across the semiconductor sector, affecting Entegris (ENTG) along with other major players. Even with these challenges, Entegris is pressing forward with expansion and innovation initiatives.

See our latest analysis for Entegris.

Entegris shares have faced considerable pressure lately, with an 11.2% drop in a single day and a 15.2% decline over the past week as fresh U.S.-China trade tensions rattled semiconductor stocks. Even so, while the year-to-date share price return is down nearly 14% and total shareholder return over the past year sits at -22.9%, Entegris’s three-year total shareholder return of 14.8% suggests that long-term growth potential remains alive, especially as the company continues to execute on expansion plans and benefit from sector innovation trends.

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With shares trading at a notable discount to recent analyst targets but industry headwinds still looming, investors now face a key question: Is Entegris undervalued after its selloff, or has the market already factored in its future prospects?

Most Popular Narrative: 17% Undervalued

With Entegris closing at $83.64 and the most widely referenced narrative suggesting a fair value of $100.75, the gap between today’s price and future expectations is clear and catching the market’s attention.

Significant ramping of new manufacturing facilities in Taiwan and Colorado, as well as ongoing regionalization of supply chains, positions Entegris to better serve global customers and mitigate trade policy risks. This should shorten lead times, improve supply chain security, and drive future revenue growth as more production is localized.

Read the complete narrative.

Want to know which growth drivers are powering this premium fair value? Hidden in the details are ambitious profit targets and a bold margin outlook. Are you ready to discover the financial levers that underpin this optimistic scenario?

Result: Fair Value of $100.75 (UNDERVALUED)

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

However, persistent trade policy uncertainty and ongoing softness in the semiconductor industry could easily undermine these optimistic fair value projections for Entegris.

Find out about the key risks to this Entegris narrative.

Another View: What Do Market Ratios Say?

Taking a look through the lens of price-to-earnings ratios adds a different angle. Entegris trades at 42.9x earnings, which is meaningfully higher than peers at 34.1x and well above the industry average of 35.3x. The fair ratio, which the market could revert toward, sits at 32.1x. This premium suggests market optimism but may also signal valuation risk. Could enthusiasm for growth be overriding caution, or is there latent upside yet to be unlocked?

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

Build Your Own Entegris Narrative

Prefer to interpret the numbers in your own way? You can quickly dig into the data and develop your personal take in just a few minutes, so why not 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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