Key statistics

Is FORM a good stock to buy in 2026?

FormFactor, Inc. (FORM) presents a complex investment profile in 2026. While 42.1% of analysts rate FORM stock as a Buy and there’s a consensus price target of $123.38, its current valuation metrics raise significant concerns, particularly with a P/E ratio of 164.75x compared to the sector average of 60.3x and a discounted cash flow (DCF) fair value of just $9.02, indicating it’s severely overvalued. Therefore, prospective investors should approach FORM stock with extreme caution, prioritizing thorough due diligence on its long-term growth prospects against its current high valuation.

2026 FORM price scenarios

Based on analyst consensus of $123.38 from 19 analysts. Not a prediction by Alert Invest.

About FormFactor, Inc. (FORM)

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. It operates in two segments, Probe Cards and Systems.

Led by CEO Michael D. Slessor, FormFactor, Inc. is a critical player in the semiconductor industry, providing essential test and measurement equipment. The company’s distinctive strengths lie in its highly specialized products, which are crucial for ensuring the quality and performance of advanced semiconductor devices, positioning it at the heart of the digital economy’s infrastructure.

FORM competitive moat and business analysis

FormFactor, Inc. operates with a net margin of 8.14%, indicating moderate profitability in a capital-intensive industry. Its business benefits from the high barriers to entry in advanced semiconductor testing, where precision engineering and proprietary technology are crucial. However, the lack of a reported ROE (N/A) and ROIC (N/A) makes it challenging to fully assess the efficiency of its capital deployment or its sustainable competitive advantage from an investor perspective.

Regarding revenue breakdown, FormFactor, Inc. provides detailed segment and geographic data in its fiscal year 2025 financial reports. These reports outline the performance of its Probe Cards and Systems segments, as well as revenue distribution across various geographical regions, offering transparency into its operational reach and market focus.

With revenue growth of 2.8%, FORM demonstrates a modest expansion. The probe card market is driven by increasing complexity in chip designs and the demand for higher testing throughput, which could support a defensive moat. This growth rate suggests a stable but not rapidly expanding market presence, prompting investors to consider if this pace is sufficient for the current FORM valuation, especially given the general growth trends within the broader technology sector.

When evaluating FORM stock against its peers like AMBA, CAMT, and DLO, it’s essential to consider specific metrics like valuation multiples and growth trajectories. FormFactor’s unique position in the probe card sector, while crucial, may face different market dynamics compared to broader semiconductor components or software firms. Comparing FORM’s financial health and market positioning with these competitors offers a more holistic view of its investment appeal and helps in understanding if FORM is a good stock to add to a portfolio.

FormFactor, Inc. analyst rating

Based on 19 analysts. 42.1% rate FORM Buy or Strong Buy.

A 42.1% Buy rating for FormFactor, Inc. (FORM) is moderate for the Technology sector, which often sees higher conviction ratings due to rapid growth potential. While it indicates a substantial portion of analysts see upside, the majority Hold rating (52.6%) suggests a more cautious outlook on FORM stock’s immediate prospects and potential FORM valuation concerns.

Is FORM undervalued or overvalued?

Assessing FORM stock valuation, FormFactor, Inc. appears significantly overvalued based on multiple metrics. Its trailing P/E ratio of 164.75x stands in stark contrast to the Semiconductors sector average of 60.3x, representing a substantial premium that is difficult to justify with its current growth profile.

Furthermore, a discounted cash flow (DCF) analysis yields a fair value of only $9.02, indicating a massive -93.8% downside from its current trading price. This profound discrepancy suggests that the market may be pricing in exceptionally high future growth and profitability that are not yet supported by fundamentals, making FORM stock a risky proposition for investors focused on intrinsic value.

FORM financial health & key metrics

For value investors, FORM stock presents a highly challenging proposition. Its extremely high P/E ratio of 164.75x, significantly above the sector average of 60.3x, combined with a deeply negative DCF valuation of $9.02 (implying -93.8% downside), points to severe overvaluation. While the company boasts an excellent debt-to-equity ratio of 0.02x, indicating strong financial solvency, its modest 2.8% revenue growth and weak 0.32% free cash flow yield suggest that current profitability and cash generation do not justify its premium FORM valuation. This signals that FormFactor, Inc. might be pricing in substantial future growth that is not yet visible in its current fundamentals, prompting questions about whether FORM is a good stock for long-term value creation.

FormFactor, Inc. earnings history & next report

FormFactor, Inc. reported EPS of $0.56, beating estimates by 24.44%. Next earnings: 2026-07-29 with EPS estimate of $0.61.

When FormFactor, Inc. reports its next earnings on 2026-07-29, investors will be closely watching for any deviation from the EPS estimate of $0.61. Beyond the headline numbers, attention should be paid to management’s guidance on future revenue growth and profit margins, especially how they plan to address the current high FORM valuation. Commentary on market demand for probe cards, the competitive landscape, and any advancements in new product lines will be crucial for assessing the company’s trajectory and whether FORM stock can justify its premium going forward.

FORM daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

FORM insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent FORM analyst rating changes

FormFactor, Inc. stock news today

How does FORM compare to its peers?

In the competitive Semiconductors industry, understanding how FormFactor, Inc. (FORM) stacks up against its rivals is key for investors. While FormFactor specializes in critical test and measurement solutions, companies like Ambarella (AMBA), Camtek (CAMT), and DLocal (DLO) offer different profiles within the broader technology and semiconductor ecosystem. Evaluating FORM stock requires a close look at its unique market position relative to these peers.

FAQ — FormFactor, Inc. (FORM) stock