ASML Holding N.V. (ASML) Fair Value & PE Analysis
Semiconductors · NASDAQ
Current Price
$1863.55
Intrinsic Value
$2,461.84
+24.3% margin of safety
What Is ASML Holding N.V.'s Fair Value?
As of 2026-06-12, applying a 50.0x earnings multiple to ASML Holding N.V.'s (ASML) earnings per share of $29.38 yields a fair value estimate of $2,461.84 per share, versus a market price of $1,863.55.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $2,143.77 to $2,815.71. 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 our PE model works · Recalculate in PE mode · ASML intrinsic value (DCF view)
Is ASML Holding N.V. (ASML) Overvalued?
At $1,863.55, ASML trades about 24.3% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑EUV Lithography Dominance
ASML is the sole supplier of extreme ultraviolet (EUV) lithography machines, essential for advanced chip manufacturing. This creates an insurmountable technological barrier for competitors.
↑Deep Customer Integration
ASML's machines require extensive customization and integration with chipmakers' processes. This deep partnership fosters long-term customer loyalty and high switching costs.
↑Intellectual Property Portfolio
The company holds a vast portfolio of patents covering critical lithography technologies. This extensive IP protection deters new entrants and safeguards its market position.
INVESTMENT RISKS
↓Geopolitical Tensions
Export restrictions and trade disputes, particularly involving China, can limit ASML's market access and revenue streams. This creates uncertainty in global sales.
↓Technological Obsolescence
While currently dominant, ASML must continuously innovate to stay ahead. A breakthrough in alternative lithography technologies could erode its competitive edge.
↓Supply Chain Dependencies
ASML relies on a complex global supply chain for its highly specialized components. Disruptions in this chain, due to natural disasters or other events, could impact production.
Base case
ASML base case PE valuation
Intrinsic Value
$2,461.84
Margin of safety
+24.3%
Expected annual return
+5.7%
Base case assumptions: 20.0% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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., founded in 1984 and based in Veldhoven, the Netherlands, is a leading provider of advanced semiconductor manufacturing equipment for chipmakers. Known as ASM Lithography Holding N.V. until its name change in 2001, the company is involved in the design, production, sales, marketing, and servicing of these critical systems. Its comprehensive product lineup includes sophisticated lithography, metrology, and inspection systems. ASML's lithography offerings feature cutting-edge extreme ultraviolet (EUV) systems, as well as deep ultraviolet (DUV) solutions, encompassing both immersion and dry technologies, engineered to facilitate the creation of a wide array of semiconductor nodes and technologies. The company also delivers specialized metrology and inspection tools, such as its YieldStar optical metrology systems for assessing pattern quality on silicon wafers, and HMI electron beam solutions for precisely locating and analyzing individual defects in chips. Furthermore, ASML provides computational lithography solutions and software for controlling its lithography systems. Its service portfolio includes refurbishing and upgrading existing equipment, alongside extensive customer support. ASML maintains a significant global presence, operating across key regions including Japan, South Korea, Singapore, Taiwan, China, the wider Asian market, the Netherlands, other European countries, the Middle East, Africa, and the United States.
Financial Metrics — ASML PE Stock Valuation Data
Earnings Yield
1.58%
ROE (TTM)
52.0%
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?
Whether ASML is overvalued depends on comparing its PE ratio to Semiconductors peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
How do I value ASML stock using PE ratio?
To value ASML Holding N.V. using PE: (1) Compare the current PE against the Semiconductors median to assess relative pricing, (2) check the PEG ratio 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?
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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 52.0%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.