<div id="readability-page-1"><div><ul> <li>If you are wondering whether MKS at around US$213.45 is still attractively priced after its strong run, you are not alone. This article aims to unpack what that price really reflects.</li> <li>The stock has returned 1.6% over the last 7 days and declined 17.6% over 30 days, but is still up 26.8% year to date and 149.1% over the past year. This raises fair questions about how much optimism is already in the price.</li> <li>Recent company updates and industry headlines around MKS have kept investor attention on the stock, with newsflow framing it as a key name in the semiconductor equipment and solutions space. This context helps explain why the share price has seen both sharp gains over the last year and a pullback more recently.</li> <li>MKS currently has a valuation score of 1 out of 6. Next we will look at what different valuation approaches say about that price, and then finish by looking at a broader way to think about valuation beyond any single model.</li> </ul> MKS scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. <h3>Approach 1: MKS Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and then discounting those back to a present value. For MKS, the model uses last twelve months free cash flow of about $520.4 million and applies a 2 stage Free Cash Flow to Equity approach. Analysts provide explicit forecasts for the next few years, and beyond that Simply Wall St extrapolates cash flows, with projections running out to 2035. For example, projected free cash flow for 2027 is $739.9 million, and the ten year schedule includes discounted estimates each year out to 2035. On this basis, the DCF model arrives at an estimated intrinsic value of about $146.92 per share. Compared with the recent share price of roughly $213.45, this implies MKS trades at about a 45.3% premium to the DCF estimate, which points to the stock looking overvalued under this set of assumptions. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests MKS may be overvalued by 45.3%. Discover 48 high quality undervalued stocks or create your own screener to find better value opportunities. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d083c570-aafd-41b4-8e5b-2406e7796038/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTE0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d083c570-aafd-41b4-8e5b-2406e7796038/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTE0"/><figcaption>MKSI Discounted Cash Flow as at Mar 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for MKS. <h3>Approach 2: MKS Price vs Earnings</h3> For a profitable company like MKS, the P/E ratio is a useful way to relate what you pay for each share to the earnings the business is currently generating. It gives a quick sense of how much investors are willing to pay today for each dollar of earnings. What counts as a &#34;normal&#34; or &#34;fair&#34; P/E often reflects how the market views a company’s growth potential and risk. Higher expected growth or lower perceived risk can support a higher P/E, while slower growth or higher risk can pull it down. MKS is trading on a P/E of 48.66x, compared with the Semiconductor industry average of about 41.72x and a peer group average of 45.97x. Simply Wall St also calculates a proprietary Fair Ratio of 45.13x for MKS. This Fair Ratio is designed to be more tailored than simple peer or industry comparisons, as it factors in elements like earnings growth, profit margins, industry, market cap and company specific risks. Comparing the current P/E of 48.66x to the Fair Ratio of 45.13x suggests the shares are pricing in more optimism than the model implies, so on this measure MKS looks overvalued. Result: OVERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d083c570-aafd-41b4-8e5b-2406e7796038/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTE0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d083c570-aafd-41b4-8e5b-2406e7796038/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTE0"/><figcaption>NasdaqGS:MKSI P/E Ratio as at Mar 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies. <h3>Upgrade Your Decision Making: Choose your MKS Narrative</h3> Earlier we mentioned that there is an even better way to understand valuation. Let us introduce Narratives, which let you attach a clear story to your numbers by linking what you believe about a company like MKS to specific forecasts for future revenue, earnings and margins, and then to a Fair Value that you can easily compare with the current price on Simply Wall St’s Community page. Narratives are updated automatically when new information such as news or earnings arrives. For example, one MKS Narrative on the platform currently anchors on a Fair Value of about US$320 per share, another sits closer to US$146 per share, and a third is around US$281 per share, reflecting different views on growth, profitability and risk. This helps you see how your own view fits along that spectrum and whether the current price of roughly US$213.45 looks high, low, or about right against the Fair Value you believe in. For MKS, however, we will make it really easy for you with previews of two leading MKS Narratives: 🐂 MKS Bull Case Fair value: US$281.25 Current price vs this fair value: around 24.1% below the narrative fair value Revenue growth assumption: 12.96% <ul> <li>Frames MKS as a core enabler in advanced semiconductors and electronics, with Atotech broadening its reach into chemistry and packaging solutions across the global tech supply chain.</li> <li>Highlights balance sheet repair after the Atotech deal, including large debt prepayments and interest savings, alongside a higher dividend and strong free cash flow.</li> <li>Uses a higher forward P/E multiple on 2027 earnings to argue for a fair value above US$280, with the gap to the current price presented as a potential re rating opportunity if the thesis plays out.</li> </ul> 🐻 MKS Bear Case Fair value: about US$146.08 Current price vs this fair value: around 46.1% above the narrative fair value Revenue growth assumption: 8.32% <ul> <li>Focuses on risks from tariffs, supply chain disruption, localization and customers developing more in house equipment, all of which could limit MKS market share and earnings power.</li> <li>Flags integration and regulatory costs as potential drags on margins and free cash flow, even if headline revenues and earnings continue to grow over time.</li> <li>Bases its lower fair value on more cautious growth and margin assumptions and a lower future P/E, arguing that current expectations leave less room for disappointment if conditions are less favorable.</li> </ul> Do you think there's more to the story for MKS? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d083c570-aafd-41b4-8e5b-2406e7796038/chart/quote-price/query-ZGF0ZT0yMDI2LTAzLTE0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d083c570-aafd-41b4-8e5b-2406e7796038/chart/quote-price/query-ZGF0ZT0yMDI2LTAzLTE0"/><figcaption>NasdaqGS:MKSI 1-Year Stock Price Chart</figcaption></figure> This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<div><h3>New: Manage All Your Stock Portfolios in One Place</h3>We've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free</div></div></div>

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MKS Instruments (MKSI) shares have surged 149% over the past year, currently priced at approximately $213.45. Despite a recent 17.6% decline over 30 days, the stock remains up 26.8% year-to-date. Valuation analyses indicate the stock may be overvalued, with a DCF model suggesting an intrinsic value of $146.92, indicating a 45.3% premium. The P/E ratio stands at 48.66, above industry averages, further suggesting overvaluation. Different valuation narratives yield fair values ranging from $146 to $320 per share, reflecting varying growth and risk perceptions.

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Has The MKS Instruments (MKSI) Share Price Run Too Far After Its 149% One-Year Rally?