ENTG
Entegris, Inc.
$135.28
Platform & Compounding FCF
70%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 141.2% above fair value
You pay
$135.28
Bear
$25.11
Fair
$56.09
Bull
$87.51
Bear
$25.11
-81.4%
7% stage 1 growth, 12% discount
Fair
$56.09
-58.5%
11% stage 1 growth, 12% discount
Bull
$87.51
-35.3%
15% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
36%
Implied Market Multiple
70.1x
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 $152.00 from 26 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $56.09 per share.
Warnings
Wall Street's average price target is $152.00 (from 26 analysts). Our estimate is 84% 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