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MKS Instruments, Inc. (NASDAQ:MKSI), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$164 and falling to the lows of US$112. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether MKS Instruments' current trading price of US$118 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at MKS Instruments’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for MKS Instruments
What is MKS Instruments worth?
Great news for investors – MKS Instruments is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $189.28, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, MKS Instruments’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of MKS Instruments look like?
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. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. MKS Instruments' earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since MKSI is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on MKSI for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MKSI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.