ASML ASML Holding N.V.
$1,737.17
Platform & Compounding FCF 80%
Two-stage FCF DCF
Mild · Conviction

Overvalued

Trading 14.4% above fair value

You pay $1,737.17
Bear $810.26
Fair $1,518.63
Bull $2,443.90
Bear $810.26 -53.4% 13% stage 1 growth, 12% discount
Fair $1,518.63 -12.6% 22% stage 1 growth, 12% discount
Bull $2,443.90 +40.7% 29% stage 1 growth, 12% discount

Adjust Assumptions

22.0%
12.0%
3.0%

Key Value Driver

FCF growth rate (22% base case)

Terminal Value % of EV 43%
Implied Market Multiple 52.1x
Market is pricing in (growth) 23.9% vs 22.0% base

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (45 analysts) $2305.75
Divergence from AlphaVal 34%

Summary

Using a two-stage FCF DCF with 22% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $1518.63 per share.

Warnings

Wall Street's average price target is $2305.75 (from 45 analysts). Our estimate is 34% below the consensus -- consider that gap carefully.
Financial statements were converted from EUR into USD using EURUSD at 1.1385 USD per EUR.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions