ASML PE Ratio & Valuation,Is ASML Overvalued

ASML Relative Valuation

ASML's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ASML is overvalued; if below, it's undervalued.

Historical Valuation

ASML Holding NV (ASML) is now in the Fair zone, suggesting that its current forward PE ratio of 37.59 is considered Fairly compared with the five-year average of 33.78. The fair price of ASML Holding NV (ASML) is between 956.28 to 1348.58 according to relative valuation methord.

Relative Value

Fair Zone

956.28-1348.58

Current Price：1211.38

Fair

37.59

29.48

EV/EBITDA

ASML Holding NV. (ASML) has a current EV/EBITDA of 29.48. The 5-year average EV/EBITDA is 26.90. The thresholds are as follows: Strongly Undervalued below 16.61, Undervalued between 16.61 and 21.76, Fairly Valued between 32.05 and 21.76, Overvalued between 32.05 and 37.20, and Strongly Overvalued above 37.20. The current Forward EV/EBITDA of 29.48 falls within the Historic Trend Line -Fairly Valued range.

32.09

EV/EBIT

ASML Holding NV. (ASML) has a current EV/EBIT of 32.09. The 5-year average EV/EBIT is 29.34. The thresholds are as follows: Strongly Undervalued below 18.32, Undervalued between 18.32 and 23.83, Fairly Valued between 34.86 and 23.83, Overvalued between 34.86 and 40.37, and Strongly Overvalued above 40.37. The current Forward EV/EBIT of 32.09 falls within the Historic Trend Line -Fairly Valued range.

11.09

ASML Holding NV. (ASML) has a current PS of 11.09. The 5-year average PS is 9.80. The thresholds are as follows: Strongly Undervalued below 6.09, Undervalued between 6.09 and 7.95, Fairly Valued between 11.66 and 7.95, Overvalued between 11.66 and 13.51, and Strongly Overvalued above 13.51. The current Forward PS of 11.09 falls within the Historic Trend Line -Fairly Valued range.

36.04

P/OCF

ASML Holding NV. (ASML) has a current P/OCF of 36.04. The 5-year average P/OCF is 34.58. The thresholds are as follows: Strongly Undervalued below 17.30, Undervalued between 17.30 and 25.94, Fairly Valued between 43.21 and 25.94, Overvalued between 43.21 and 51.85, and Strongly Overvalued above 51.85. The current Forward P/OCF of 36.04 falls within the Historic Trend Line -Fairly Valued range.

52.03

P/FCF

ASML Holding NV. (ASML) has a current P/FCF of 52.03. The 5-year average P/FCF is 47.91. The thresholds are as follows: Strongly Undervalued below 17.76, Undervalued between 17.76 and 32.83, Fairly Valued between 62.98 and 32.83, Overvalued between 62.98 and 78.05, and Strongly Overvalued above 78.05. The current Forward P/FCF of 52.03 falls within the Historic Trend Line -Fairly Valued range.

ASML Holding NV (ASML) has a current Price-to-Book (P/B) ratio of 20.11. Compared to its 3-year average P/B ratio of 20.06 , the current P/B ratio is approximately 0.24% higher. Relative to its 5-year average P/B ratio of 20.92, the current P/B ratio is about -3.87% higher. ASML Holding NV (ASML) has a Forward Free Cash Flow (FCF) yield of approximately 2.35%. Compared to its 3-year average FCF yield of 2.28%, the current FCF yield is approximately 3.03% lower. Relative to its 5-year average FCF yield of 2.71% , the current FCF yield is about -13.51% lower.

20.11

P/B

Median3y

20.06

Median5y

20.92

2.35

FCF Yield

Median3y

2.28

Median5y

2.71

Competitors Valuation Multiple

The average P/S ratio for ASML's competitors is 7.42, providing a benchmark for relative valuation. ASML Holding NV Corp (ASML) exhibits a P/S ratio of 11.09, which is 49.37% above the industry average. Given its robust revenue growth of 7.12%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ASML increased by 66.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.85 to 40.69.

The secondary factor is the Revenue Growth, contributed 7.12%to the performance.

Overall, the performance of ASML in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.12%

8.20B → 8.78B

Revenue Growth

1.65%

27.81 → 28.27

Margin Expansion

57.39%

25.85 → 40.69

P/E Change

66.16%

739.31 → 1.23K

Mkt Cap Growth

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Frequently Asked Questions

Is ASML Holding NV (ASML) currently overvalued or undervalued?

What is ASML Holding NV (ASML) fair value?

ASML's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of ASML Holding NV (ASML) is between 956.28 to 1348.58 according to relative valuation methord.

How does ASML's valuation metrics compare to the industry average?

What is the current P/B ratio for ASML Holding NV (ASML) as of Jan 08 2026?

As of Jan 08 2026, ASML Holding NV (ASML) has a P/B ratio of 20.11. This indicates that the market values ASML at 20.11 times its book value.

What is the current FCF Yield for ASML Holding NV (ASML) as of Jan 08 2026?

As of Jan 08 2026, ASML Holding NV (ASML) has a FCF Yield of 2.35%. This means that for every dollar of ASML Holding NV’s market capitalization, the company generates 2.35 cents in free cash flow.

What is the current Forward P/E ratio for ASML Holding NV (ASML) as of Jan 08 2026?

As of Jan 08 2026, ASML Holding NV (ASML) has a Forward P/E ratio of 37.59. This means the market is willing to pay $37.59 for every dollar of ASML Holding NV’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for ASML Holding NV (ASML) as of Jan 08 2026?

As of Jan 08 2026, ASML Holding NV (ASML) has a Forward P/S ratio of 11.09. This means the market is valuing ASML at $11.09 for every dollar of expected revenue over the next 12 months.

ASML Valuation