InvestorsObserver
×
News Home

Is ASML Holding NV (ASML) Stock Trading Below Fair Value?

Monday, January 24, 2022 11:54 AM | InvestorsObserver Analysts

Mentioned in this article

Is ASML Holding NV (ASML) Stock Trading Below Fair Value?

ASML Holding NV (ASML) receives a strong valuation ranking of 98 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. ASML has a better value than 98% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 98
ASML gets a 98 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ASML!

Metrics Analysis

ASML has a trailing twelve month Price to Earnings (PE) ratio of 44.8 which places it above the histroical average of roughly 15. ASML is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. ASML's trailing-12-month earnings per share (EPS) of 6.54 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. ASML has a 12 month forward PE to Growth (PEG) ratio of 1.03. Markets are overvaluing ASML in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 6.53999996's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

All together these valuation metrics paint a pretty adequate picture for ASML at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for ASML are around the average of the market resulting in a valuation score of 98. Click Here to get the full Report on ASML Holding NV (ASML) stock.

You May Also Like

Get the InvestorsObserver App

InvestorsObserver App
iOS App Android App