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ASML Holding stock: recent performance snapshot
ASML Holding (NasdaqGS:ASML) has drawn attention after a strong run, with the stock showing a 6.5% move over the past day, about 7.4% over the past week, and near 10% for the month.
See our latest analysis for ASML Holding.
That sharp recent move fits into a strong trend, with the stock posting a 90 day share price return of 26.43% and a 1 year total shareholder return of 128.60%, suggesting momentum has been building rather than fading.
If you are looking beyond ASML and want to see what else is moving around chip and AI infrastructure, now is a good time to scan 48 AI infrastructure stocks
With ASML Holding now trading near its analyst price target and showing strong recent returns, the key question for you is simple: is this still a buying opportunity, or is the market already pricing in future growth?
Price-to-earnings of 58.2x: Is it justified?
ASML’s current valuation leans rich, with the stock trading on a P/E of 58.2x, which signals a high price tag relative to its reported earnings.
The P/E ratio compares the share price to earnings per share, so a higher multiple usually reflects strong expectations for future earnings. In ASML’s case, forecasts point to earnings growth of about 17.1% per year and revenue growth of 13.3% per year, which helps explain why the market is willing to pay a premium for each dollar of profit.
Even so, the stock looks expensive compared with an estimated fair P/E of 51.4x. This suggests the current multiple sits above a level the market could potentially gravitate toward over time. That said, ASML still trades at a slight discount to the broader US Semiconductor industry on a P/E basis, with its 58.2x multiple below the 62.7x industry average and close to the 58.5x peer group average, indicating the premium is sizeable but not out of line with sector heavyweights.
Explore the SWS fair ratio for ASML Holding
Result: Price-to-earnings of 58.2x (OVERVALUED)
However, there are still risks, including any slowdown in chip equipment spending or pressure on ASML’s premium P/E if sector sentiment cools.
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