One-glance verdict
Overvalued
$1,001.29 our estimate vs market $1,714.88
Wall Street consensus: $2,166.70 (116.4% higher than our fair-value estimate)
71% above our estimate, beyond the bull case
Fundamentals snapshot
ASML Holding N.V.
ASML · NMS · Technology · Semiconductor Equipment & Materials
Current price
$1,714.88
52-week range
$786.75 - $1,999.96
Market cap
$658.69B
Balance sheet
Healthy
95.53x Strong cushion
Net cash $6.50B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 15.6% last year.
- Reward Returns 53.9% on equity, ahead of 75% of its peers.
- Risk Stock trades 54.9% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.3%).
What this company does
ASML Holding N.V.
ASML builds and sells the massive, complex machines that are essential for manufacturing the world's most advanced computer chips. Because ASML is the only company that can make this technology, the biggest chipmakers rely on it to produce the powerful chips for phones, computers, and data centers, giving it a critical role in the global technology supply chain (the network of companies that create and distribute products).
How the company got here
ASML started in 1984 as a joint venture between electronics company Philips and manufacturing group ASM International in the Netherlands. In its early days, it faced tough competition from established players and struggled financially. A key turning point was the launch of its PAS 5500 system in the early 1990s, which was a technological breakthrough that attracted major customers. This success allowed ASML to become a publicly traded company in 1995 and invest heavily in research for a new, revolutionary technology called extreme ultraviolet (EUV) lithography, solidifying its future dominance.
What it actually does
ASML builds highly complex machines that are essential for making microchips, the tiny electronic brains inside everything from your phone to your car. These machines, called lithography systems, act like a projector, using powerful light to print incredibly small and intricate patterns onto silicon wafers (thin slices of silicon). This process is repeated many times to build up the layers of a chip, creating billions of tiny switches called transistors. Essentially, ASML provides the fundamental tools that allow chipmakers like Intel, Samsung, and TSMC to create smaller, faster, and more powerful chips.
Net System Sales
This is ASML's largest business area, making up the majority of its revenue from selling new lithography machines to chip manufacturers. The company offers two main types of systems. Its most advanced and expensive machines use Extreme Ultraviolet (EUV) light, a technology ASML is the sole provider of, which is necessary for producing the most cutting-edge chips for things like AI and advanced smartphones. It also sells Deep Ultraviolet (DUV) systems, which are the workhorses of the industry, used to make a wide variety of less complex, but still essential, chips for cars and other electronics.
Installed Base Management
This part of the business focuses on supporting the thousands of ASML machines already operating in customer factories around the world. It's a significant and growing source of income, providing services, software updates, and hardware upgrades to help customers get the most out of their existing equipment. Think of it like the service and parts department for a high-end car; these machines are so complex they require constant maintenance and improvements to keep running at peak performance. This creates a steady, recurring revenue stream (income that is predictable and likely to continue in the future) for ASML long after the initial sale of a machine.
Metrology & Inspection
This segment provides systems that act as highly advanced quality control tools for the chipmaking process. These machines inspect and measure the patterns printed on the silicon wafers to ensure they are perfectly aligned and free of defects. For example, the YieldStar systems use light to measure the quality of the patterns, while HMI e-beam systems use a beam of electrons to find tiny individual flaws that could ruin a chip. This helps chipmakers improve their yield (the percentage of working chips from each wafer), which is crucial for making the manufacturing process profitable.
What management is betting on now
ASML is heavily focused on advancing its next generation of EUV technology, called High-NA (High Numerical Aperture), which will enable chipmakers to produce even smaller and more powerful chips for future technologies like advanced AI. The company is also expanding its service business, known as Installed Base Management, to create more recurring revenue from the large number of machines already in use. Additionally, ASML is integrating artificial intelligence (AI) into its own research and development to speed up innovation and improve its products. Management is also focused on strengthening its relationships with its key suppliers and customers to ensure the entire ecosystem can handle the increasing complexity and demand for advanced chips.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $1,001.29 vs current price $1,714.88
Wall Street consensus is the average analyst price target: $2,166.70 (116.4% higher than our fair-value estimate).
Our most-likely fair value is $1,001.29 a share — about 41.6% below today's price of $1,714.88, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $6.5B - more cash than debt. Interest coverage 95.5x.
Net debt
$-6.50B
Interest coverage
95.53x
ASML Holding N.V.'s profit covers its interest bill about 95.5 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
ASML
BASELINE
ASML Holding N.V.
Total debt $2.31B Interest coverage 95.53x This is the baseline the peer rows are being compared against.
Total debt $7.35B Interest coverage 31.49x -67% vs ASML Carries about 3.0x less debt cushion than ASML.
Total debt $100.13M Interest coverage 100.59x +5% vs ASML Has roughly the same debt cushion as ASML.
Total debt $2.65B Interest coverage 14.16x -85% vs ASML Carries about 6.7x less debt cushion than ASML.
What you should know
The case for and against ASML
3 Rewards
2 Risks
Rewards
-
Revenue grew 15.6% last year.
-
Returns 53.9% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 54.9% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
58.13x
Forward P/E
28.52x
P/B
1,447.30x
P/S
18.65x
EV/EBITDA
2,712.56x
PEG ratio
1.47x
Profitability
How much profit each dollar creates
Gross margin
52.7%
Operating margin
37.1%
Net margin
30.1%
ROE
53.9%
ROA
16.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
1.33x
Quick ratio
0.72x
Total debt
$2.31B
Total cash
$8.81B
Growth
How the business has been compounding
Revenue TTM
$41.05B
Revenue 5Y CAGR
15.6%
EPS TTM
29.50
EPS 5Y CAGR
15.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$14.71B
Free CF TTM
$12.81B
FCF margin
31.2%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
29.7%
Last ex-div date
2026-07-28