ENTG
Entegris, Inc.
$139.98
Platform & Compounding FCF
70%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 135.5% above fair value
You pay
$139.98
Bear
$26.62
Fair
$59.45
Bull
$92.75
Bear
$26.62
-81.0%
7% stage 1 growth, 12% discount
Fair
$59.45
-57.5%
11% stage 1 growth, 12% discount
Bull
$92.75
-33.7%
15% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
36%
Implied Market Multiple
72.2x
Market is pricing in (growth)
28.3%
vs 11.5% base
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $165.43 from 26 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $59.45 per share.
Warnings
Wall Street's average price target is $165.43 (from 26 analysts). Our estimate is 85% below the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions