Is Now The Time To Look At Buying Ultra Clean Holdings, Inc. (NASDAQ:UCTT)?

Explore Ultra Clean Holdings's Fair Values from the Community and select yours

Ultra Clean Holdings, Inc. (NASDAQ:UCTT), is not the largest company out there, but it saw a significant share price rise of 22% in the past couple of months on the NASDAQGS. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Ultra Clean Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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What Is Ultra Clean Holdings Worth?

According to our valuation model, Ultra Clean Holdings seems to be fairly priced at around 20% below our intrinsic value, which means if you buy Ultra Clean Holdings today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $29.29, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Ultra Clean Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

See our latest analysis for Ultra Clean Holdings

What does the future of Ultra Clean Holdings look like?NasdaqGS:UCTT Earnings and Revenue Growth August 15th 2025

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In the upcoming year, Ultra Clean Holdings' earnings are expected to increase by 33%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in UCTT’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

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Are you a potential investor? If you’ve been keeping an eye on UCTT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Ultra Clean Holdings as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Ultra Clean Holdings you should know about.

If you are no longer interested in Ultra Clean Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.

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