ASML: Growth Outlook Strong, Upside Limited At This Multiple
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The J Thesis1.24K FollowersFollow5ShareSavePlay(14min)CommentsSummaryASML (ASML) has surged over 60% YTD, now exceeding a $400 billion market cap.Despite strong fundamentals and above-market margins, ASML trades at a 39x FY2025 earnings multiple, reflecting a significant premium.I rate ASML a Hold, with a $1,176 price target and 6% upside, as valuation already prices in its quality.Q3 2025 results were mixed: revenue missed by $224M, but EPS beat by $0.17; top-line deceleration is a concern. cookelma/iStock via Getty Images The Dutch chip-equipment manufacturing leader ASML (ASML) has rallied over 60% year-to-date, and now it is a more than $400 billion market-cap company. The market rewarded ASML due to consistent performance and solid top and bottom-line growth. This article was written byThe J Thesis1.24K FollowersFollowDear Reader,I am a Senior Derivatives Expert with over 10 years of experience in the field of Asset Management, specializing in equity analysis and research, macroeconomics, and risk-managed portfolio construction. My professional background covers both institutional and private client asset management, where I have advised on and implemented multi-asset strategies, but highly focusing on equities and derivatives.As you might be as well, I am a stock market enthusiast. My core passion lies in understanding how macro trends influence both asset prices and investor behavior. I closely follow EU and US central bank policies, sector rotation, and sentiment dynamics, and construct actionable investment strategies.BA in Financial Economics, MA in Financial Markets. In the past decade, I have navigated through various market conditions, and this was my PhD.One of the essential goals of writing on Seeking Alpha is to share insights with colleagues, fellow investors, exchange ideas, and become slightly better than yesterday. I contribute to the idea that investing should be accessible, inspiring, and empowering. It might sound like a cliche, I know, but in the end it's highly valuable - so let's help each other build confidence in long-term investing. The analysis and opinions shared in my articles and comments are for informational purposes only and should not be considered financial advice. Please do your own research before making any investment decisions.Thank you and have a lovely day!Best regardsAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You