ASM International (ENXTAM:ASM) shares have moved higher recently, catching some attention among semiconductor investors. With strong momentum over the past month and quarterly gains topping 35%, the company’s performance continues to fuel curiosity about its valuation and growth outlook.
Momentum has clearly returned to ASM International, with the stock’s recent rally building on a robust 90-day share price return of nearly 36%. That short-term surge builds on an already strong foundation. Three- and five-year total shareholder returns of 167% and 328% show the company has rewarded long-term investors plenty, even if short-term moves sometimes pause.
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The question now is whether ASM International’s rapid gains make it a bargain awaiting further upside, or if the market has already priced in all of its growth prospects ahead. Could there still be a buying opportunity here?
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Most Popular Narrative: 5.2% Undervalued
According to the most widely followed narrative, ASM International's fair value estimate stands at €597.4, which is about 5% higher than its latest closing price of €566.4. Market watchers are split on what drives this gap, as ambitious future growth projections and recent guidance adjustments play central roles.
The ramp-up of advanced nodes (2nm and 1.4nm gate-all-around) in logic/foundry, driven by accelerating AI and high-performance computing needs, is structurally expanding ASM International's served available market and increasing deposition intensity, directly supporting above-industry revenue growth and resilient orders.
Curious what powers this ambitious price tag? It all comes down to bold revenue bets, extraordinary margin leaps, and a profit outlook that could reshape how investors see the future. These are projections you won’t want to miss. Find out what the narrative is really banking on.
To challenge the fair value based on future earnings, the SWS DCF model takes a different path by focusing on the company’s long-term cash flows. In this approach, the calculated fair value is much lower than the current share price, which suggests ASM International may be trading above its intrinsic value. Could this indicate caution for investors despite the growth optimism?
If the story above does not fit with your view, or you would rather investigate for yourself, it is quick and easy to craft your own perspective. Do it your way
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding ASM International.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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Engages in the research, development, manufacture, marketing, and servicing of equipment and materials used to produce semiconductor devices in Europe, the United States, and Asia.
