Entegris is a provider of materials and solutions for advanced manufacturing processes in the semiconductor and other high-technology industries. The company was founded in 1966 and is based in Billerica, Massachusetts.
ENTG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Entegris Inc. To summarize, we found that Entegris Inc ranked in the 29th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for ENTG, they are:
89% of the company's capital comes from equity, which is greater than 74.66% of stocks in our cash flow based forecasting set.
Entegris Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 6.48. This coverage rate is greater than that of 68.09% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 8. This value is greater than merely 23.85% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BKI, SLAB, ASML, DOX, and FIS can be thought of as valuation peers to ENTG, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
On the call today are Bertrand Loy, our CEO and Greg Graves, our CFO. When we provided guidance for the second quarter in late April, our order book was at a record level, which gave us confidence, despite all of the uncertainty in the market to guide to a sequential increase in sales.