Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1718
    +0.0024 (+0.21%)
     
  • GBP/USD

    1.2623
    +0.0001 (+0.01%)
     
  • Bitcoin GBP

    55,252.81
    -495.07 (-0.89%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

Should You Buy MKS Instruments Inc (NASDAQ:MKSI)?

MKS Instruments Inc (NASDAQ:MKSI), a semiconductor company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $125.45 and falling to the lows of $102.4. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether MKS Instruments’s current trading price of $110.05 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. View our latest analysis for MKS Instruments

What is MKS Instruments worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13.97% below my intrinsic value, which means if you buy MKS Instruments today, you’d be paying a fair price for it. And if you believe that the stock is really worth $127.92, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, it seems like MKS Instruments’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.

What does the future of MKS Instruments look like?

NasdaqGS:MKSI Future Profit Jun 8th 18
NasdaqGS:MKSI Future Profit Jun 8th 18

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 27.36% over the next couple of years, the future seems bright for MKS Instruments. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in MKSI’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 financial strength of the company. 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?

ADVERTISEMENT

Are you a potential investor? If you’ve been keeping tabs on MKSI, 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on MKS Instruments. You can find everything you need to know about MKS Instruments in the latest infographic research report. If you are no longer interested in MKS Instruments, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.