Veeco Instruments Inc.

NasdaqGS:VECO Stock Report

Market Cap: US$1.5b

Veeco Instruments Valuation

Is VECO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VECO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VECO ($26.22) is trading above our estimate of fair value ($9.53)

Significantly Below Fair Value: VECO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VECO?

Key metric: As VECO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for VECO. This is calculated by dividing VECO's market cap by their current earnings.
What is VECO's PE Ratio?
PE Ratio18.5x
EarningsUS$80.39m
Market CapUS$1.50b

Price to Earnings Ratio vs Peers

How does VECO's PE Ratio compare to its peers?

The above table shows the PE ratio for VECO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.8x
PLAB Photronics
10.7x-0.08%US$1.5b
ACLS Axcelis Technologies
10.6x-13.8%US$2.4b
FORM FormFactor
21.5x4.4%US$2.9b
CAMT Camtek
32.3x23.8%US$3.4b
VECO Veeco Instruments
18.5x-5.5%US$1.5b

Price-To-Earnings vs Peers: VECO is good value based on its Price-To-Earnings Ratio (18.5x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

How does VECO's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.7xn/aUS$146.46m
SQNS Sequans Communications
1.5x-156.5%US$64.23m
No more companies available in this PE range
VECO 18.5xIndustry Avg. 30.5xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VECO is good value based on its Price-To-Earnings Ratio (18.5x) compared to the US Semiconductor industry average (30.5x).

Price to Earnings Ratio vs Fair Ratio

What is VECO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VECO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.5x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: VECO is expensive based on its Price-To-Earnings Ratio (18.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst VECO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$26.22
US$35.00
+33.5%
11.0%US$40.00US$30.00n/a7
Nov ’25US$28.79
US$41.86
+45.4%
15.8%US$55.00US$35.00n/a7
Oct ’25US$32.17
US$42.86
+33.2%
15.4%US$55.00US$35.00n/a7
Sep ’25US$35.49
US$42.86
+20.8%
15.4%US$55.00US$35.00n/a7
Aug ’25US$39.06
US$47.00
+20.3%
16.2%US$55.00US$35.00n/a7
Jul ’25US$46.92
US$45.00
-4.1%
14.8%US$55.00US$35.00n/a7
Jun ’25US$40.65
US$42.29
+4.0%
8.7%US$46.00US$35.00n/a7
May ’25US$34.59
US$39.71
+14.8%
9.9%US$44.00US$33.00n/a7
Apr ’25US$35.70
US$39.67
+11.1%
10.7%US$44.00US$33.00n/a6
Mar ’25US$36.90
US$39.67
+7.5%
10.7%US$44.00US$33.00n/a6
Feb ’25US$32.33
US$34.57
+6.9%
6.7%US$38.00US$31.00n/a7
Jan ’25US$31.03
US$33.00
+6.3%
10.2%US$37.00US$28.00n/a7
Dec ’24US$28.67
US$33.00
+15.1%
10.2%US$37.00US$28.00n/a7
Nov ’24US$24.32
US$32.57
+33.9%
10.0%US$37.00US$28.00US$28.797
Oct ’24US$28.11
US$32.57
+15.9%
10.0%US$37.00US$28.00US$32.177
Sep ’24US$29.98
US$32.17
+7.3%
10.4%US$37.00US$28.00US$35.496
Aug ’24US$28.70
US$26.00
-9.4%
15.2%US$32.00US$20.00US$39.065
Jul ’24US$25.68
US$25.00
-2.6%
18.6%US$32.00US$20.00US$46.925
Jun ’24US$24.85
US$25.00
+0.6%
18.6%US$32.00US$20.00US$40.655
May ’24US$18.42
US$25.00
+35.7%
15.7%US$30.00US$19.00US$34.594
Apr ’24US$21.13
US$25.00
+18.3%
15.7%US$30.00US$19.00US$35.704
Mar ’24US$21.66
US$24.00
+10.8%
16.9%US$30.00US$19.00US$36.905
Feb ’24US$20.87
US$23.20
+11.2%
18.0%US$30.00US$18.00US$32.335
Jan ’24US$18.58
US$23.40
+25.9%
18.8%US$30.00US$18.00US$31.035
Dec ’23US$19.84
US$23.40
+17.9%
18.8%US$30.00US$18.00US$28.675
Nov ’23US$18.23
US$30.00
+64.6%
21.4%US$39.00US$22.00US$24.325

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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