ASML Holding, or ASML, is one of the semiconductor stock collections that enjoyed bumper growth in 2021, with the demand outstripping the supply. However, even after this, the stock by no means remained immune to the tech share price crunch, which pushed down the share value of ASML by 17% in the year till the current date. The stock rebound can be helped by the European ambition over digital sovereignty and the overvaluation signs amidst the competitors. But then again, the only question is, even after so many predictions and ASML stock forecast, will the stock regain that momentum?
Considering the above, this article has been prepared to provide an analysis of the ASML stock, give the ASML stock prediction (approx.) and talk about whether to buy or sell ASML stocks. So, go ahead and keep reading to get more information.
ASML Stock Analysis
- The ASML share price has shown a downward movement in the stocks, but in comparison to the past five years, the growth is much better in the current one and is expected to be the same in the upcoming too.
- Demand disappeared (like Target), this has been an issue with many companies, but in the case of ASML, the demand has increased, and they had bookings of 8.4 billion Euros.
- Even though other companies in the industry, like Intel, have been having lower growth and they show decreased demand, ASML still managed to get high demand as they sell to Taiwan Semiconductor, which makes the chips for NVIDIA and Apple. The company’s biggest client is Apple, and with the growth of iPhone and Macbooks in the market, the growth in the ASML can be seen too.
- Currently, ASML has a cash-debt ratio of 1.66, with a massive amount of cash in hand in relation to debt. It means that they can easily pay off the entire debt that is outstanding on the balance sheet if they desire to do so instantaneously.
- The company, based on current numbers, is quite profitable. The net margins of 31.61, returns on the equity of 48.04, the management competency, and the profitability financial strength are all high for ASML as per the 2nd quarter results.
- Free cash flow has shown a growth of 178.9% in the past year alone. It is expected, as per the ASML stock price forecast that the growth will be high in the upcoming years too.
- Looking beyond 2022, ASML stock price target shows that the revenue growth rate is quite high, and for FY 2023 and 2024, it has been predicted to be +11.4% and +8.3%, respectively.
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Financial Metrics of ASML
In order to understand the current market scenario for ASML and its stocks, lookout for the below-mentioned numbers.
| ASML Stock Price Valuation Measures | Price/Value |
| Market Capital | 235.15 billion |
| 52 Week High | $859.66 |
| 52 Week Low | $363.15 |
| YTD% change | -30% |
| Enterprise Value/EBITDA | 33.89 |
| Enterprise Value/Revenue | 11.93 |
| S&P500 52-Week Change | -15.32% |
| Price/Sales (ttm) | 11.64 |
| Price/Book (mrq) | 28.58 |
| Profit Margin | 28.29% |
| Operating Margin | 31.40% |
ASML Stock Price Prediction 2023
| Year | ASML Stock Prediction 2023 |
| 2023 | $552.32 |
The ASML stock prediction 2023 says that ASML stock will be a good investment choice. As per the analysis and the experts, the growth is expected, and it might go up to $552.32. So, if you are planning to make the purchase, now is the time to make that move.
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ASML Stock Price Prediction 2025
| Year | ASML Stock Forecast 2025 |
| 2025 | $1690.32 |
ASML Stock Forecast 2025, according to it, the investment is a great choice that active investors can make. It is to be noted that the growth rate predicted for the company in terms of annual revenue growth is quite high (3.17% in comparison to the previous year growth rate), and if you invest on time, it can be your move toward getting a huge chunk of profit at a later date, if planning to earn through the portfolio.
ASML Stock Price Prediction 2027
| Year | ASML Stock Prediction 2027 |
| 2027 | $2543.97 |
Looking at the ASML stock forecast 2027, we do have a hint that with the company performing better, the investors have a chance to gain a lot but then again, do not go in blindly. Make sure you do not base your decision just based on what we say. Look around, research, do a proper analysis, ask an expert or look for expert reviews and then make a decision. If needed, hire a financial advisor but do not fall prey to the myth that “investing in stocks can make you wealthy overnight”.
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ASML Stock Price Prediction 2030
| Year | ASML Stock Forecast 2030 |
| 2023 | $2765.37 |
In comparison to the previous year’s annual revenue growth rate, the growth in 2030 is just a small amount, but if you are planning to invest now, it still is a viable choice to make. However, the ASML holding stock forecasts are not always right, as analysts can be wrong, and the forecasts, it cannot be used as a substitute for the research you are going to conduct personally. So, make sure to conduct proper due diligence before you make any investment, and never invest the money you cannot afford to say goodbye.
ASML Stock Price Prediction 2040
| Year | ASML Stock Forecast 2040 |
| 2040 | $3000+ |
The company is expected to show growth beyond 2030. It is expected the price will continue to move upward, considering the high demand for Macbooks and iPhones within the market. So, if ASML is able to maintain the supply to their largest purchaser and able to gain some best deals in the upcoming time, in spite of the downward movement of the revenue for the other companies, ASML will be maintaining positive revenue.
The above-mentioned suffices that ASML Holdings is a good investment to make for long term. However, make sure to consider reviews and market reports and do a personal analysis before you make the investment.
Also Read :- Apple stock price prediction
FAQs :-
ASML Stock Buy Sell Hold?
As per our analysis, it is better to have a hold over the stock. It is because in the next 5 years, as per the ASML stock prediction, the company is about to witness the top line expansion, and it will help to widen the gross profit margin. In the next 10 years, the growth prospects of ASML will be quite good. The expected low-teens revenue CAGR of ASML, along with the mid-teens earnings per share CAGR in the upcoming decade, that would be coupled with the dominance the company will have in the market, it will make the stock quite an attractive investment. However, with the P/E of ASML multiplying 34.6 times, it appears to be quite fair, and it suggests the limited upside for company shares at the given valuation on the current date.
Definitely, there will be many better opportunities for ASML stocks in the upcoming time. Within the environment wherein there would be none of the meaningful semiconductor chips shortage and industry experiences would have some form of oversupply, the ASML shares are expected to get cheaper. This means there would be a -2-% correction further, assuming the stock will be reverting right to the 10-year mean forward the P/E multiples of the 27.4 times. So, as per our analysis, we would say ASML shares are a perfect hold instead of a buy.
What are the analysts saying about the ASML Holdings?
The ASML Holding’s analysts’ rating consensus is that ASML holding is a strong buy. It is based upon ratings of the analysts of 6 Wall Street.
Where will the ASML stocks be in the next five years?
As per the forecasts made by us based on the analysts’ reviews, and the market trends, long-term increase has been expected within the ASML stocks. If anyone is making the 5-year investment, we expect the revenue to be around +112.16%.
Who is the largest ASML stockholder?
Capital Research and Management Company is the largest ASML stockholder, with 15.81% of the class.
ASML Holding Charts – https://www.investing.com/equities/asml-holding-chart
