MKS Instruments (MKSI): Revisiting Valuation After Third Consecutive Newsweek Responsibility Recognition

MKS (MKSI) just picked up its third straight spot on Newsweek’s America’s Most Responsible Companies list, a sustainability streak that is quietly reshaping how some investors think about the stock’s long term appeal.

See our latest analysis for MKS.

The recognition comes as the stock trades around $163.35, with a 30 day share price return of 16.75 percent and a powerful 90 day share price return of 56.33 percent that hints momentum is building, supported by a 3 year total shareholder return of 104.33 percent.

If this kind of steady execution in semiconductors appeals to you, it could be worth seeing what else is out there via high growth tech and AI stocks.

With the shares now up more than 50 percent in three months and trading only modestly below analyst targets, the real question is whether MKS is still undervalued or if the market has already priced in the next leg of growth.

Most Popular Narrative Narrative: 6.6% Undervalued

With MKS closing at $163.35 against a narrative fair value of $174.85, the valuation case leans positive and rests heavily on long term growth assumptions.

The company's deepening integration of advanced materials and chemistry equipment (including Atotech) positions MKS as a unique provider of both tools and consumables required for the shift to multilayer, high-density AI-related applications. This is enabling cross-selling, leading to superior revenue growth and structural improvements in gross and operating margins.

Read the complete narrative.

Want to see what kind of revenue runway and margin reset could justify that valuation gap? The narrative leans on ambitious growth and profitability upgrades. Curious which assumptions really move the dial here? Read on to see how they add up.

Result: Fair Value of $174.85 (UNDERVALUED)

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

However, elevated leverage and exposure to cyclical wafer equipment demand mean that any downturn or tariff shock could quickly pressure margins and derail those growth assumptions.

Find out about the key risks to this MKS narrative.

Another View: Market Ratios Flash Caution

While the narrative fair value suggests MKS is about 6.6 percent undervalued, the earnings multiple tells a more cautious story. At roughly 39.3 times earnings, the stock trades above its 37.4 fair ratio and even tops the US semiconductor average of 37.6 times, hinting valuation risk may be creeping in.

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

Build Your Own MKS Narrative

If you would rather dig into the numbers yourself or see the story differently, you can build a full narrative in minutes: Do it your way.

A great starting point for your MKS research is our analysis highlighting 2 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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