ASML Holding N.V. (ASML) Fair Value & PE Analysis
Semiconductors · NASDAQ
Current Price
$1635.57
PE Ratio (TTM)
42.5x
Intrinsic Value
$2,779.74
+41.2% margin of safety
What Is ASML Holding N.V.'s Fair Value?
As of 2026-10-27, applying a 42.3x earnings multiple to ASML Holding N.V.'s (ASML) earnings per share of $38.63 yields a fair value estimate of $2,779.74 per share, versus a market price of $1,635.57.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $2,398.37 to $3,205.63. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · ASML intrinsic value (DCF view)
Is ASML Holding N.V. (ASML) Overvalued?
At $1,635.57, ASML trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
COMPETITIVE MOAT
↑EUV Lithography Monopoly
ASML is the sole global supplier of Extreme Ultraviolet (EUV) lithography systems. This technology is essential for producing the most advanced semiconductor chips, creating a significant barrier to entry for competitors.
↑Deep R&D Investment & Expertise
Decades of sustained, high-risk R&D investment have built unparalleled expertise in complex lithography technology. This deep knowledge base is difficult and time-consuming for rivals to replicate.
↑Customer Lock-in and Ecosystem
Major chip manufacturers like TSMC and Intel rely heavily on ASML's advanced systems. The integration and calibration of these machines create substantial switching costs and foster a strong customer ecosystem.
INVESTMENT RISKS
↓Technological Obsolescence Risk
While currently dominant, ASML faces the perpetual risk of a disruptive new lithography technology emerging. Failure to innovate or adapt could erode its current advantage.
↓AI Funding and Demand Volatility
Concerns about AI funding and broader market sentiment can impact semiconductor demand. This cyclical nature of the industry can lead to unpredictable revenue fluctuations for ASML.
↓Supply Chain Dependencies
ASML's complex manufacturing process relies on a specialized global supply chain. Disruptions to this chain, whether from geopolitical events or supplier issues, could impact production and delivery.
Base case
ASML base case PE valuation
Intrinsic Value
$2,779.74
Margin of safety
+41.2%
Expected annual return
+11.2%
Base case assumptions: 20.0% annual earnings growth, 42.34x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-27.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ASML PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for ASML Holding N.V. respond.
Open PE Calculator for ASMLCompany Overview
ASML Holding N.V. provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems. The company offers lithography, metrology, and inspection systems. It also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography systems solutions to manufacture various range of semiconductor nodes and technologies. In addition, the company offers metrology and inspection systems, including YieldStar optical metrology systems, a diffraction-based wafer metrology platform to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, it provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. Additionally, the company offers hardware, software, and services to chipmakers to produce the patterns of integrated circuits. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.
Financial Metrics — ASML PE Stock Valuation Data
PE Ratio (TTM)
42.5x
PEG Ratio
0.96
Earnings Yield
2.36%
ROE (TTM)
63.9%
Revenue/Share (TTM)
$103.04
Dividend Yield
0.54%
Debt/Equity
0.09x
Frequently Asked Questions
What is the PE ratio of ASML?
The trailing twelve-month PE ratio of ASML reflects how much investors pay per dollar of ASML Holding N.V.'s earnings. This metric is most useful when compared to Semiconductors peers and the company's own historical range.
Is ASML overvalued based on PE ratio?
ASML's PE of 42.5x combined with a PEG ratio of 0.96 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Semiconductors, a DCF analysis may be more appropriate.
How do I value ASML stock using PE ratio?
To value ASML Holding N.V. using PE: (1) Compare the current PE (42.5x) against the Semiconductors median to assess relative pricing, (2) check the PEG ratio (0.96) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ASML?
ASML's PEG ratio is 0.96, calculated by dividing the PE ratio (42.5x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ASML stock valuation?
PE ratio gives a quick relative read — how ASML is priced versus Semiconductors peers. DCF provides an absolute value based on projected free cash flows. For ASML, with a strong ROE of 63.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ASML DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value ASML with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-27. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.