Assessing ASML (NasdaqGS:ASML) Valuation as Shares Approach All-Time Highs

ASML Holding (NasdaqGS:ASML) continues to attract attention as investors track its recent performance. Over the past month, the stock has edged lower. However, gains over the past 3 months remain strong.

See our latest analysis for ASML Holding.

ASML Holding’s recent dip over the last month comes after a sustained period of strength, with a standout 3-month share price return of 40.18%. Momentum remains positive. The one-year total shareholder return of 52.84% highlights the underlying trend that has appealed to long-term investors.

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With ASML shares hovering near all-time highs, some investors are questioning whether current valuations leave room for upside, or if expectations for future growth are already fully reflected in the price. Is this a genuine buying opportunity, or has the market already priced in what lies ahead for ASML?

Most Popular Narrative: 3.8% Overvalued

ASML Holding’s narrative fair value estimate is below the recent closing price, which opens the discussion about the factors influencing the current market price.

“With €2.1 billion in service revenue, ASML’s Installed Base Management business provides recurring, high-margin cash flow. This helps stabilize earnings even in periods of slower equipment sales.”

Read the complete narrative.

Want to peek behind the curtain? The narrative hinges on assumptions about future service revenue and margins that could be noteworthy for anyone tracking ASML’s momentum. Interested in which financial levers shape this valuation perspective? Explore further to analyze the primary numbers influencing this ongoing price discussion.

Result: Fair Value of $1002.53 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering geopolitical risks and macroeconomic uncertainty could challenge ASML's growth narrative if global chip demand or trade conditions worsen.

Find out about the key risks to this ASML Holding narrative.

Build Your Own ASML Holding Narrative

If you would rather dive into the details and form your own viewpoint, you can craft a personalized narrative in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding ASML Holding.

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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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