Does the MKS Share Price Rally Signal a Shift in Value for 2025?

If you have ever wondered whether MKS stock is trading at a bargain or getting expensive, you are definitely not alone. Let’s break down what’s been happening and where value might be hiding. The stock has jumped 7.7% over the last week and is up an impressive 46.0% year-to-date, showing that investors are either spotting new growth opportunities or shifting their perception of risk. Recently, MKS has been in the spotlight after making headlines with ambitious R&D investments and expansion plans. This has sparked fresh interest among both institutional and retail investors. These updates have played a role in fueling recent price moves and are worth considering as we look at how the market is valuing the company now. According to Simply Wall St’s valuation assessment, MKS scores 1 out of 6 on undervaluation checks. While there may be some value opportunities, there could be better ways to judge if the stock is right for you by the end of this article.

MKS scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: MKS Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model is a widely used method for valuing companies by estimating all future cash flows and discounting them to their present value. This approach gives investors a sense of what a company’s shares might be worth based on its capacity to generate cash over time.

For MKS, the DCF model relies on current and projected Free Cash Flow (FCF). The company’s latest twelve-month FCF stands at $556.43 Million. Analyst forecasts provide annual projections for several upcoming years, with estimates continuing through 2027. After this point, Simply Wall St extends these assumptions over the following years and projects a steady, though moderate, increase in FCF. By 2035, MKS’s FCF is expected to reach around $721.92 Million.

After discounting all these future cash flows to today’s dollars, the estimated intrinsic value per share is $86.94. However, when compared to the current share price, this valuation implies the stock is nearly 78% overvalued. This means that, according to the DCF model, MKS’s current market price is well above what long-term cash flow projections might justify.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests MKS may be overvalued by 78.0%. Discover 868 undervalued stocks or create your own screener to find better value opportunities.MKSI Discounted Cash Flow as at Nov 2025

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for MKS.

Story Continues

Approach 2: MKS Price vs Earnings (P/E)

The Price-to-Earnings (P/E) ratio is widely considered the go-to metric for valuing profitable companies, as it connects a company’s current share price with its actual earnings. For investors, P/E offers a quick way to see how much they are paying for each dollar of earnings, which is especially telling for established and growing businesses like MKS.

What makes a "normal" or "fair" P/E ratio can shift depending on growth expectations and perceived risks. Higher expected growth or lower risk tends to justify a higher P/E multiple. Slower growth or more uncertainty usually results in a lower number.

MKS currently trades at a P/E of 37.27x. This puts it right in line with its peer group average of 37.41x and slightly above the semiconductor industry average of 35.61x. These numbers show that the market is valuing MKS similarly to its direct competition and the broader sector.

To bring more nuance, Simply Wall St’s "Fair Ratio" for MKS is calculated at 33.75x. Unlike conventional benchmarks, the Fair Ratio goes a step further by factoring in not just industry standards, but also the company’s profit margins, growth outlook, risk profile and market cap. This makes it a more holistic measure of what MKS should be worth based on its own fundamentals, rather than only its peers.

Comparing the Fair Ratio of 33.75x to the actual P/E of 37.27x, MKS stock appears modestly overvalued by this measure.

Result: OVERVALUEDNasdaqGS:MKSI PE Ratio as at Nov 2025

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1398 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your MKS Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is simply your investing story, the set of beliefs and expectations you have about a company’s future, including its fair value, growth, and profitability, based on your own research and perspective.

With Narratives, you connect what you know about MKS, from its AI-led semiconductor growth to its financial forecasts, directly to your own estimate of fair value. This makes investment decisions more personal and insightful, since you are not only looking at numbers, but also factoring in your view of the business’s story and what you believe could drive future results.

Narratives are easy to use and available right now within the Community page on Simply Wall St, trusted by millions of investors worldwide. By creating or following a Narrative, you can instantly compare your fair value to the current market price and see if you think MKS is a buy, hold, or sell, using inputs that actually make sense to you.

Best of all, Narratives are dynamic and automatically update as new news or earnings data arrives. For example, some investors right now believe MKS is worth as much as $160 per share, while others see a fair value closer to $92, proving that you can interpret the same data in many ways.

Do you think there's more to the story for MKS? Head over to our Community to see what others are saying!NasdaqGS:MKSI Community Fair Values as at Nov 2025

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.

Companies discussed in this article include MKSI.

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