ASML Holding N.V. — Financial Overview, Stock Price, Market Cap

Financial Performance

5Y price score: 213

10Y return: 1,660.8%

DATE RANGE:

US$ Per
Share

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683.4

52-week range

1999.9

1,747.58

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Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

1.1 %

Dividend Yield TTM

0.5 %

Market cap $

$ 673,549

Price / Earnings TTM

52.3

Price / Book TTM

26.9

PEG TTM

1.8

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

135.6 %

158.7 %

1,660.8 %

Free cash flow per share growth

13.4 %

236.4 %

603.7 %

Earnings per share growth

28.4 %

213.2 %

658 %

Founded: 1,984

Employees: 41,505

Business Summary:ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems consisting of lithography, metrology, and inspection related systems for memory and logic chipmakers. The company provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. It also offers metrology and inspection systems, including YieldStar optical metrology solutions to measure the quality of patterns on the wafers; and HMI e-beam solutions to locate and analyze individual chip defects. In addition, the company provides computational lithography and software solutions to create applications that enhance the setup of the lithography system; and mature products and services that refurbish used lithography equipment and offers associated services. It operates in Japan, South Korea, Singapore, Taiwan, China, the Netherlands, Europe, the United States, and rest of Asia. 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.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Jul 15, 2026)

1) Financial Performance Overview
- Total net sales for Q2 2026 reached EUR 9.3 billion, exceeding guidance due to strong Installed Base Management sales.
- Net system sales were EUR 6.6 billion, with EUR 3.8 billion from EUV systems and EUR 2.8 billion from non-EUV systems.
- Gross margin was 54%, above guidance, driven by high-margin components in Installed Base Management.
- Net income stood at EUR 2.9 billion, equating to an earnings per share of EUR 7.59.
- Free cash flow for the quarter was EUR 1.3 billion.

2) Segment Insights and Growth Drivers
- Installed Base Management sales were EUR 2.8 billion, nearly EUR 300 million above guidance, primarily from upgrades.
- EUV system sales are expected to grow over 45% YoY, with 65 Low-NA EUV systems anticipated to ship in 2026.
- Memory-related net system sales are projected to grow over 75% this year, driven by increased demand for advanced nodes and DRAM investments.
- Advanced logic foundry-related net system sales are expected to increase by over 25% in 2026.

3) Operational Plans and Capacity Expansion
- ASML plans to increase Low-NA EUV capacity by 30% in 2027 and is investigating a further 30% increase for 2028.
- The company is also planning a 30% increase in immersion system capacity for 2027.
- Strong customer demand has led to a backlog increase, with visibility extending several years into the future.
- The company is optimizing existing clean room space to support increased output without needing new facilities.

4) Challenges and Market Dynamics
- The company faces challenges in aligning supply with fluctuating customer demand, particularly for 2027 and 2028.
- There are ongoing discussions with customers regarding capacity needs, with ASML not waiting for formal orders before investigating capacity increases.
- The pricing environment is favorable, allowing ASML to potentially capture a larger share of the value delivered to customers.

5) Guidance and Future Outlook
- For Q3 2026, ASML expects total net sales between EUR 11 billion and EUR 12 billion and Installed Base Management sales around EUR 2.9 billion.
- Full-year 2026 guidance has been updated to total net sales between EUR 43 billion and EUR 45 billion, with a gross margin between 54% and 56%.
- The transcript lacks specific details on customer orders for 2027 and 2028, which could provide further clarity on future capacity planning.

Bottom line: ASML's strong Q2 performance and optimistic guidance reflect robust demand in advanced logic and DRAM segments, positioning the company well for continued growth. The focus on capacity expansion and operational efficiency suggests a proactive approach to meet future customer needs, making ASML a compelling investment opportunity.