2 models fit Veeco Instruments Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionVeeco Instruments Inc. Common Stock (VECO)
Fair value (2 models)
$26.09
ACCE price target
$57.00
Rating
Overvalued
Horizon
12 months
Fair value published on 23 Oct 2026, 10:03 CEST; previously $27.95 since 21 Oct 2026, 12:04 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 12:04 CEST.
Price used: $42.06 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E 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
61.2% above
-38.0% to fair value
ACCE score
47
out of 100
Analysts
50% buy
4 covering
P/E
113.7x
forward 14.5x
1-year return
+42.0%
Dividend yield
0.00%
Veeco Instruments Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Veeco makes the metrology, lithography and deposition tools that chipmakers and compound-semiconductor fabs use to etch, grow and inspect wafers, with its MOCVD reactors used to produce GaN LEDs and power devices. Its position rests on process know-how in epitaxy and ion-beam systems that customers qualify once and then keep buying, though the company is a niche player next to the large equipment makers. Revenue growth of 16.5% is the number to watch, and the forward P/E of 14.3 against a trailing 122.1 says the market expects earnings to recover sharply from a depressed base. A 6.7% operating margin and 2.6% ROE show the earnings power is not there yet, so the case depends on whether the recovery in fab capital spending, particularly for advanced packaging and power devices, lifts margins toward the 37.9% gross margin level. At a 2.8 billion dollar market cap and with no index membership, the name is small enough to be overlooked, which is a reason to read the next few quarters closely.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings declining despite revenue growth
Revenue grew 16.5% year over year but earnings fell 8.6%, and the net margin of 3.4% leaves little cushion. Operating margin of 6.7% sits well below the 37.9% gross margin, pointing to heavy operating costs.
high
Extreme valuation on trailing earnings
Trailing P/E of 115.5 and EV/EBITDA of 52.0 reflect thin current earnings. The stock trades 61.2% above the model fair value of $26.09, and sits 26.2% below the ACCE price target of $57.00.
moderate
Elevated short interest
Short interest stands at 16.2% of shares. A high short position can amplify volatility in either direction, especially with earnings currently contracting.
moderate
Weak return on equity
ROE of 2.6% is low for a company with $46M in free cash flow and a $2.6B market cap, suggesting limited returns on shareholder capital.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 16.5% year over year, well ahead of its 7.9% average annual pace over the last five years.
Analysts' mean price target of $61.33 sits 40.5% above the current share price, and half of covering analysts rate the stock Buy or Strong Buy.
The company beat its latest earnings estimate by 46.2%, reporting $0.19 per share against $0.13 expected.
Why it could disappoint
At a trailing P/E of 115.5x, current earnings are too thin to support the share price.
The stock trades 61.2% above the model fair value of $26.09, and only 2 of 4 valuation models are in the consensus.
Net margin of 3.4% and return on equity of 2.6% show the business keeps very little of each dollar of sales as profit.
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
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Valuation
INVESTOR
Where VECO's valuation models land
Price
$42.06
Model fair value
$26.09
Model range
$12.97 to $39.22
Fair value $26.09
Price $42.06
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores