Is Entegris, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Entegris, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, supported by a P/E ratio of 38, a Price to Book Value of 2.95, and an EV to EBITDA ratio of 15.89. In comparison, IDEX Corp., a peer in the industrial manufacturing sector, has a P/E ratio of 29.59, suggesting that Entegris is trading at a premium relative to its peers.
Despite a strong dividend yield of 40.87%, the company's returns have been underwhelming in the longer term, with a year-to-date return of -3.12% compared to the S&P 500's 12.22%. Over the past five years, while Entegris has returned 44.19%, it still lags significantly behind the S&P 500's 96.61% return, reinforcing the notion that the stock may be overvalued in the current market environment.