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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Asml Holding Nv. To summarize, we found that Asml Holding Nv ranked in the 30th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Asml Holding Nv ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 106.95; that's higher than 93.25% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 11.66% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 47.11% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ASML, try GLOB, TDY, BR, EEFT, and NXGN.
ASML (ASML) has been one of my favorite investments as the company boasts a combination of a highly advanced technology and product coupled with a strong demand profile for its products and a capable management that knows how to approach the business. However, since reporting Q2 earnings, shares of ASML...
Dhierin Bechai on Seeking Alpha | September 28, 2020
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