ENTG Entegris, Inc.
$143.03
Platform & Compounding FCF 70%
Two-stage FCF DCF
Strong · Conviction

Overvalued

Trading 188.5% above fair value

You pay $143.03
Bear $29.10
Fair $49.57
Bull $70.34
Bear $29.10 -79.7% 7% stage 1 growth, 12% discount
Fair $49.57 -65.3% 11% stage 1 growth, 12% discount
Bull $70.34 -50.8% 15% stage 1 growth, 12% discount

Adjust Assumptions

11.5%
12.0%
3.0%

Key Value Driver

FCF growth rate (11% base case)

Terminal Value % of EV 36%
Implied Market Multiple 47.8x
Market is pricing in (growth) 22.7% vs 11.5% base

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (27 analysts) $179.50
Divergence from AlphaVal 72%

Summary

Using a two-stage FCF DCF with 11% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $49.57 per share.

Warnings

Wall Street's average price target is $179.50 (from 27 analysts). Our estimate is 72% 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