We raise wide-moat ASML’s fair value estimate to EUR 900 from EUR 790 as we increase our long-term revenue and EBIT forecasts. While our 2025 estimates remain unchanged we raise our long-term revenue forecasts due to higher confidence in ASML’s long-term prospects and better certainty of high-NA extreme ultraviolet adoption. Our fair value represents a 2025 P/E ratio of 31.5 times.
ASML’s machines last more than 30 years, providing recurring service revenue. The switching costs and intangible assets required to displace these machines are enormous, with no competitor coming even close to ASML’s technological leadership
ASML sells a low-volume, high-price product. Lithography machines represent a high proportion of customer costs, so if the company fails to innovate customers will look for alternatives.
|
Metric
|
ASML
|
AMAT
|
KLAC
|
|---|---|---|---|
Price/Earnings (Normalized) | 53.51 | 26.91 | 34.54 |
Price/Book Value | 27.88 | 10.09 | 33.92 |
Price/Sales | 14.63 | 7.02 | 11.10 |
Price/Cash Flow | 45.16 | 23.67 | 31.26 |
|
Metric
|
ASML
|
AMAT
|
KLAC
|
|---|---|---|---|
Quick Ratio | 0.76 | 1.82 | 1.36 |
Current Ratio | 1.54 | 2.80 | 2.14 |
Interest Coverage | — | 32.42 | 10.76 |
|
Metric
|
ASML
|
AMAT
|
KLAC
|
|---|---|---|---|
Return on Assets (Normalized) | 19.23% | 22.48% | 21.67% |
Return on Equity (Normalized) | 60.82% | 42.56% | 104.66% |
Return on Invested Capital (Normalized) | 44.24% | 28.55% | 35.79% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| ASML Holding NV
ASMLF
| Vplxwvxjv | Hjhr | $405.1 Bil | |||
| Applied Materials Inc
AMAT
| Cpykmwwvm | Lzl | $183.6 Bil | |||
| Lam Research Corp
LRCX
| Fsqgckzpy | Ffnf | $125.8 Bil | |||
| KLA Corp
KLAC
| Jmcfslpjzq | Jgwd | $104.9 Bil | |||
| Tokyo Electron Ltd
TOELF
| — | Qnf | $103.0 Bil | |||
| Tokyo Electron Ltd ADR
TOELY
| — | Lzq | $103.0 Bil | |||
| Disco Corp
DISPF
| — | Hmw | $41.6 Bil | |||
| Disco Corp ADR
DSCSY
| — | Vpwb | $41.6 Bil | |||
| Teradyne Inc
TER
| Sgcxgll | Trzz | $22.4 Bil |
