ASML Holding N.V. - ADS represents 1 ordinary share (ASML) Company Bio
ASML Holding NV engages in the development, production, marketing, sale, and servicing of advanced semiconductor equipment systems with a focus on lithography related systems worldwide. The company was founded in 1984 and is based in Veldhoven, the Netherlands.
ASML Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Asml Holding Nv with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Asml Holding Nv ranked in the 27th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Asml Holding Nv ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 100.6 -- which is good for besting 94.52% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than only 11.13% of the free cash flow producing stocks we're observing.
ASML's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 47.17% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BLKB, FN, MIME, TRMB, and ADSK can be thought of as valuation peers to ASML, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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Robert Castellano on Seeking Alpha | September 2, 2020
Source: ASML ASML (ASML) is a Dutch semiconductor equipment manufacturer specialized in lithography systems. The company holds a monopoly over next generational lithography systems with EUV technology. These systems are critical to fabricate leading edge chips for AI, IoT and HPC markets. The semiconductor equipment market is poised to grow...
Khaveen Investments on Seeking Alpha | August 24, 2020