Is Entegris, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Entegris, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 38, which is notably higher than its peer IDEX Corp., which has a P/E of 31.10. Additionally, Entegris has an EV to EBITDA ratio of 15.89, compared to IDEX Corp.'s 19.47, suggesting that while its earnings before interest, taxes, depreciation, and amortization are relatively more favorable, the overall valuation remains high.
Entegris also displays a PEG ratio of 0.14, which typically indicates growth potential, yet this is overshadowed by its high valuation metrics. The company's return on equity (ROE) stands at 7.72%, which is modest in comparison to the elevated stock price. Recent performance shows that Entegris has underperformed the S&P 500 over various time frames, including a year-to-date decline of 23.31% versus the S&P 500's gain of 2.44%. This combination of high valuation ratios and poor stock performance reinforces the conclusion that Entegris, Inc. is currently overvalued.