3 models fit Qnity Electronics Inc. Common Stock and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Premium(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionQnity Electronics Inc. Common Stock (Q)
Fair value (3 models)
$86.62
ACCE price target
$125
Rating
Overvalued
Horizon
12 months
Fair value published on 21 Oct 2026, 13:04 CEST; previously $88.20 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 24 Sept 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $110 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
26.8% above
-21.1% to fair value
ACCE score
46
out of 100
Analysts
100% buy
10 covering
P/E
38.9x
forward 24.8x
Dividend yield
0.18%
Qnity Electronics Inc. Common Stock in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Qnity Electronics manufactures precision inspection and metrology systems for semiconductor wafer production, selling to foundries and memory chipmakers during their fab construction and qualification phases. The company benefits from a structural shift toward advanced node manufacturing in geographies outside Taiwan and South Korea, where customers are building new capacity and require Qnity's equipment for process validation. Revenue growth of 22.1% is driven by a multi-year cycle of fab buildouts in the US and Europe, with near-term upside from qualification orders ahead of production ramps. At a forward PE of 23.5x against 22.3% operating margins, the valuation reflects execution risk on a concentrated customer base, and the 6.7% ROE suggests capital is not yet being deployed efficiently into the growth opportunity. The score of 49/100 reflects this tension: genuine secular tailwinds in geopolitical diversification of chip manufacturing, but near-term uncertainty on whether Qnity can convert fab cycles into durable margin expansion.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Earnings falling despite revenue growth
Revenue grew 22.1% year over year while earnings fell 34.3%, so profit is not keeping pace with sales. The ACCE score also dropped 16 points in 90 days, from 66 to 50.
moderate
Valuation rich on trailing earnings
Trailing P/E is 42.9 and EV/EBITDA is 20.1. The forward P/E of 24.8 depends on earnings recovering from the recent decline.
AI research notes
AI-assisted·How I use AIWritten Oct 14, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 22.1% year over year, and the company turned in an EPS beat of 11.2% against expectations.
Free cash flow over the last 12 months reached $988M, and the forward P/E of 24.8x sits below the sector median of 29.4x.
Why it could disappoint
The consensus fair value of $91.12 sits 25.9% below the $122.90 share price, so the stock looks expensive on that measure.
Returns are thin, with return on equity at 6.7% and return on invested capital at 4.7%, well short of what a premium price usually needs.
Revenue growth averaged -0.0% per year over five years, so the recent 22.1% jump follows a long flat stretch.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
PRO
Ask ACCE
Valuation
INVESTOR
Where Q's valuation models land
Price
$109.83
Model fair value
$86.62
Model range
$50.06 to $127
Fair value $86.62
Price $110
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
Create a free account: 5 full stock pages a month, no card.
See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores