• Investors may be wondering if Ichor Holdings at around US$64.42 is still offering value, or if most of the opportunity is already priced in.
• The stock has seen a 33.9% gain over the last 30 days and a 215.6% return year to date, with 206.9% over the past year and 126.1% over three years. These figures can change how investors view both its potential and its risks.
• Recent attention on semiconductor related names, including Ichor Holdings, has highlighted themes such as supply chain positioning and exposure to chip equipment spending. These factors often influence sentiment around capital equipment suppliers. Broader sector news around investment in chip production capacity and infrastructure has also helped frame how investors think about companies tied to that cycle.
• Ichor Holdings currently has a valuation score of 4/6. Next you will see how different methods such as DCF and multiples line up with the share price today, and later on you will see an even richer way to make sense of what that valuation really means for you.

Approach 1: Ichor Holdings Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company could be worth by projecting its future cash flows and discounting them back to today using a required return. It is essentially asking what those future dollars are worth in present terms.

For Ichor Holdings, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flows in US$. The latest twelve month free cash flow is about $4.7m. Analysts provide explicit free cash flow estimates for the next few years, and Simply Wall St then extrapolates beyond that. In this model, free cash flow is projected to reach $307.9m in 2035, with intermediate projections such as $46.0m in 2026 and $146.9m in 2029.

Bringing all of those projected cash flows back to today gives an estimated intrinsic value of about $72.02 per share. Compared with the recent share price of around $64.42, the DCF output suggests the stock is about 10.6% undervalued.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Ichor Holdings is undervalued by 10.6%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.

Approach 2: Ichor Holdings Price vs Sales

For companies where earnings can be volatile or temporarily low, the P/S ratio is often a useful cross check, because it focuses on the value investors are placing on each dollar of revenue rather than profit.

What counts as a “normal” P/S ratio depends on how fast revenue is expected to grow and how risky those cash flows appear. Higher growth and lower perceived risk can justify a higher multiple, while slower growth or higher risk typically point to a lower one.

Ichor Holdings currently trades on a P/S of 2.36x. That is below the Semiconductor industry average of 8.11x and also below the peer group average of 19.29x. Simply Wall St’s Fair Ratio for Ichor Holdings is 2.95x, which is its proprietary estimate of a suitable P/S level after taking into account factors such as earnings growth, profit margins, industry, market cap and company specific risks.

This Fair Ratio can be more useful than a simple comparison with industry or peers, because it attempts to tailor the multiple to the company’s own profile rather than relying on broad group averages. With the current P/S at 2.36x versus a Fair Ratio of 2.95x, the shares screen as undervalued on this metric.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Ichor Holdings Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as a simple tool that lets you attach a clear story about Ichor Holdings to specific assumptions on future revenue, earnings and margins, connect that story to a Fair Value, and then compare it with the current price, all within the Simply Wall St Community page where Narratives are automatically refreshed when new news or earnings arrive.

For example, one Ichor Holdings Narrative on the cautious end might anchor to a Fair Value around US$36.00, reflecting expectations such as revenue growing about 12.6% a year and earnings reaching roughly US$16.6m by 2029. A more optimistic Narrative might point to a Fair Value closer to US$55.00, with revenue growth of about 12.2% a year and earnings of roughly US$15.9m. By seeing these side by side you can decide which story best matches your view and how that compares to where the shares trade today.

Do you think there's more to the story for Ichor Holdings? Head over to our Community to see what others are saying!

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.