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Entegris, Inc. (ENTG) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

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Entegris, Inc. (ENTG)

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Intrinsic Value (DCF)

Current$113.54
→
Intrinsic$26.23
-77%
$10.11$26.23$56.88
Current price reflects execution expectations above 15% growth — not unreasonable for quality businesses.
Range: Bear $10 → Bull $57. Current price implies expectations above the base case, closer to bull expectations.
Current price reflects assumptions at the upper end of our valuation range (bull case: $57).
Discount ↓Growth →11%13%15%17%
8%$37$42$48$54
10%$19$22$26$30
12%$9$11$14$17
14%$2$5$7$9

Bull Case

  • Bull case ($57) with 18% growth, 9% discount rate

Bear Case

  • Bear case ($10) implies 91% downside at 12% growth, 12% discount
  • Trading 77% above base case — execution must exceed assumptions to justify
  • Price exceeds bull case ($57) — requires exceptional execution
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5-Year Free Cash Flow Projection

Year 1$364.46M
Year 2$420.20M
Year 3$484.46M
Year 4$558.55M
Year 5$643.97M
Terminal$9.48B

📐 Model Inputs

Growth Rate15.3%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$316.12MTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

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Frequently Asked Questions

Is ENTG stock undervalued or overvalued?
🔴 OVERVALUED

ENTG trades at $113.54 vs. our DCF-derived intrinsic value of $26.23, implying -74% downside. Using a 10.0% WACC and 15.3% FCF growth assumption, the current price requires growth rates above our estimates to be justified. Even our bull case ($49.30) suggests limited upside.

What is ENTG's intrinsic value?

Using a 5-year DCF model: Base FCF of $316M, projected at 15.3% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 10.0% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $3.72B net debt and dividing by 0.15B shares: Bear $10.03 | Base $26.23 | Bull $49.30. Current price $113.54 implies -74% to base case.

How is ENTG's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 15.3% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=10.0%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($7.71B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 24.4x.