Is MKS Instruments, Inc. overvalued or undervalued?

As of 17 June 2025, MKS Instruments, Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its P/E ratio of 19, which is lower than the industry average of approximately 20.13. Other key ratios include an EV to EBITDA of 11.18 and a PEG ratio of 0.30, indicating potential for growth relative to its price.
In comparison to its peers, MKS Instruments is positioned more favorably than Pentair plc, which has a P/E of 21.53, and Graco, Inc., with a P/E of 28.63. Despite the recent stock performance lagging behind the S&P 500, particularly over the past year where it declined by 29.93% compared to the index's 10.26% gain, the current valuation suggests that MKS Instruments is not overvalued and may present a reasonable investment opportunity.