How ASML Holding Stock Has Been Performing Recently

ASML Holding (NasdaqGS:ASML) has drawn fresh attention after recent share price performance, with the stock last closing at $1,989.44 and showing positive returns over the past week, month, and past 3 months.

The recent 5.65% 1 day share price return and 46.31% 3 month share price return indicate that momentum in ASML Holding stock has been building, while the 153.36% 1 year total shareholder return reflects substantial gains over a longer period.

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With ASML Holding now trading around $1,989 against an average analyst price target of $1,935.94 and an internal value score of 2, investors may be asking whether there is still a buying opportunity or whether potential future growth is already reflected in the current price.

Preferred P/E of 66.2x for ASML Holding: Is It Justified?

ASML Holding currently trades at a P/E of 66.2x, which sits below both its peer average of 80.3x and the wider US semiconductor industry average of 73x, even though the stock is priced at $1,989.44.

The P/E ratio compares the company’s share price to its earnings per share, so a higher multiple often reflects the market paying up for current profitability and expected future earnings. For a large, profitable semiconductor equipment provider like ASML Holding, P/E is a commonly watched yardstick because earnings are a key driver of long term value in this sector.

Against similar companies, ASML Holding is described as good value relative to peers, as its 66.2x P/E sits below the 80.3x peer average and below the 73x US semiconductor industry average. At the same time, the stock is described as expensive relative to an estimated fair P/E of 54.4x, which indicates a level the P/E could converge toward if market expectations on earnings were to moderate.

Result: Price-to-earnings of 66.2x (OVERVALUED)

However, ASML Holding is exposed to swings in semiconductor equipment demand and relies heavily on a concentrated base of advanced chipmaking customers, which can amplify cyclical downturns.

Another View on ASML Holding’s Valuation

While the P/E of 66.2x suggests ASML Holding is priced above its own fair ratio of 54.4x, it still sits below the 73x US semiconductor industry average and the 80.3x peer average. That mix of relative discount and absolute premium leaves an open question on how much valuation risk you are willing to accept.

For a closer look at how this price compares across earnings-based metrics, including that fair ratio the market could move toward over time, See what the numbers say about this price — find out in our valuation breakdown.

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Next Steps

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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.