Veeco Instruments Inc. (VECO) DCF Valuation
Why we don't show a single “fair value” for VECO
Even the optimistic scenario of a conservative trailing-FCF model ($11.91) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. Off today's cash-flow base, no plausible growth rate bridges to the current price — the market is valuing normalized future cash flows, not the depressed base. The model scenarios below are shown for reference only.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.3%/yr | 12.0% | $6.78 |
| Base case | 6.3%/yr | 11.0% | $8.95 |
| Optimistic | 9.3%/yr | 10.0% | $11.91 |
| Analyst DCF (FMP) | independent reference — different model | $7.47 | |
Current Price
$79.65
Market-Implied Growth
—
Base-Case Model Value
$8.95
model output — not a price target
VECO DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for VECO (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $45.7M · 0.06B shares · net debt $94.4M
Estimated Fair Value
$10.26
-87.1% vs $79.65
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.3%/yr FCF growth and 10-year horizon fixed. Green = above today's $79.65; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.0% | $12.88 | $13.48 | $14.18 | $15.00 | $15.96 |
| 10.0% | $11.04 | $11.47 | $11.96 | $12.51 | $13.16 |
| 11.0% | $9.59 | $9.91 | $10.26 | $10.66 | $11.11 |
| 12.0% | $8.43 | $8.67 | $8.93 | $9.22 | $9.54 |
| 13.0% | $7.47 | $7.65 | $7.85 | $8.07 | $8.31 |
About Veeco Instruments Inc.
Veeco Instruments Inc., operating globally with its subsidiaries, specializes in the engineering, production, sale, and support of advanced semiconductor and thin film process equipment used primarily in the manufacture of electronic devices. Their comprehensive product portfolio features systems such as laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition (MOCVD), single wafer wet processing and surface preparation, molecular beam epitaxy (MBE), and atomic layer deposition (ALD), alongside other deposition solutions and packaging lithography tools. These advanced processing platforms are essential for manufacturing diverse microelectronic components, including logic chips, dynamic random-access memory (DRAM), photonics devices, power electronics, radio frequency (RF) filters and amplifiers, magnetic heads for hard disk drives, and various other semiconductor applications. The company's clientele encompasses integrated device manufacturers (IDMs), foundries, outsourced semiconductor assembly and test (OSAT) providers, hard disk drive and photonics producers, as well as educational institutions and research facilities. Established in 1945, Veeco Instruments Inc. is headquartered in Plainview, New York.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- William John Miller