Intrinsic value of ASML Holding N.V. - ASML

Previous Close

$223.62

  Intrinsic Value

$128.17

stock screener

  Rating & Target

sell

-43%

Previous close

$223.62

 
Intrinsic value

$128.17

 
Up/down potential

-43%

 
Rating

sell

We calculate the intrinsic value of ASML stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 95.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  16.90
  15.71
  14.64
  13.68
  12.81
  12.03
  11.32
  10.69
  10.12
  9.61
  9.15
  8.73
  8.36
  8.02
  7.72
  7.45
  7.21
  6.98
  6.79
  6.61
  6.45
  6.30
  6.17
  6.05
  5.95
  5.85
  5.77
  5.69
  5.62
  5.56
Revenue, $m
  14,705
  17,015
  19,506
  22,173
  25,013
  28,021
  31,195
  34,530
  38,025
  41,679
  45,493
  49,466
  53,602
  57,904
  62,375
  67,022
  71,851
  76,870
  82,086
  87,510
  93,152
  99,022
  105,134
  111,499
  118,132
  125,048
  132,262
  139,790
  147,651
  155,861
Variable operating expenses, $m
  9,865
  11,387
  13,027
  14,783
  16,653
  18,634
  20,724
  22,920
  25,221
  27,628
  29,956
  32,572
  35,296
  38,128
  41,073
  44,132
  47,312
  50,617
  54,052
  57,623
  61,338
  65,204
  69,228
  73,419
  77,787
  82,341
  87,091
  92,049
  97,224
  102,630
Fixed operating expenses, $m
  732
  748
  764
  781
  798
  816
  834
  852
  871
  890
  910
  930
  950
  971
  992
  1,014
  1,037
  1,059
  1,083
  1,106
  1,131
  1,156
  1,181
  1,207
  1,234
  1,261
  1,289
  1,317
  1,346
  1,375
Total operating expenses, $m
  10,597
  12,135
  13,791
  15,564
  17,451
  19,450
  21,558
  23,772
  26,092
  28,518
  30,866
  33,502
  36,246
  39,099
  42,065
  45,146
  48,349
  51,676
  55,135
  58,729
  62,469
  66,360
  70,409
  74,626
  79,021
  83,602
  88,380
  93,366
  98,570
  104,005
Operating income, $m
  4,108
  4,880
  5,715
  6,609
  7,562
  8,571
  9,637
  10,758
  11,933
  13,162
  14,627
  15,964
  17,356
  18,804
  20,310
  21,875
  23,502
  25,194
  26,952
  28,780
  30,683
  32,663
  34,725
  36,873
  39,111
  41,446
  43,882
  46,425
  49,080
  51,855
EBITDA, $m
  4,635
  5,462
  6,355
  7,312
  8,331
  9,412
  10,552
  11,751
  13,008
  14,322
  15,695
  17,125
  18,614
  20,163
  21,774
  23,448
  25,188
  26,997
  28,878
  30,834
  32,868
  34,986
  37,191
  39,489
  41,883
  44,380
  46,986
  49,705
  52,545
  55,512
Interest expense (income), $m
  59
  188
  277
  374
  478
  590
  709
  835
  968
  1,108
  1,255
  1,408
  1,568
  1,734
  1,908
  2,088
  2,276
  2,470
  2,673
  2,883
  3,102
  3,329
  3,566
  3,812
  4,068
  4,335
  4,613
  4,903
  5,205
  5,521
  5,851
Earnings before tax, $m
  3,920
  4,603
  5,341
  6,131
  6,971
  7,862
  8,802
  9,790
  10,825
  11,907
  13,219
  14,397
  15,622
  16,897
  18,222
  19,600
  21,032
  22,521
  24,069
  25,678
  27,353
  29,097
  30,913
  32,804
  34,776
  36,833
  38,979
  41,220
  43,559
  46,004
Tax expense, $m
  1,058
  1,243
  1,442
  1,655
  1,882
  2,123
  2,377
  2,643
  2,923
  3,215
  3,569
  3,887
  4,218
  4,562
  4,920
  5,292
  5,679
  6,081
  6,499
  6,933
  7,385
  7,856
  8,346
  8,857
  9,390
  9,945
  10,524
  11,129
  11,761
  12,421
Net income, $m
  2,861
  3,361
  3,899
  4,475
  5,089
  5,739
  6,425
  7,146
  7,902
  8,692
  9,650
  10,509
  11,404
  12,335
  13,302
  14,308
  15,353
  16,440
  17,570
  18,745
  19,968
  21,241
  22,566
  23,947
  25,387
  26,888
  28,455
  30,090
  31,798
  33,583

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  26,736
  30,936
  35,465
  40,315
  45,478
  50,948
  56,717
  62,781
  69,137
  75,781
  82,714
  89,939
  97,458
  105,279
  113,409
  121,858
  130,638
  139,763
  149,247
  159,109
  169,366
  180,040
  191,152
  202,726
  214,786
  227,360
  240,476
  254,164
  268,455
  283,383
Adjusted assets (=assets-cash), $m
  26,736
  30,936
  35,465
  40,315
  45,478
  50,948
  56,717
  62,781
  69,137
  75,781
  82,714
  89,939
  97,458
  105,279
  113,409
  121,858
  130,638
  139,763
  149,247
  159,109
  169,366
  180,040
  191,152
  202,726
  214,786
  227,360
  240,476
  254,164
  268,455
  283,383
Revenue / Adjusted assets
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
Average production assets, $m
  6,176
  7,146
  8,192
  9,313
  10,506
  11,769
  13,102
  14,503
  15,971
  17,505
  19,107
  20,776
  22,513
  24,320
  26,198
  28,149
  30,177
  32,285
  34,476
  36,754
  39,124
  41,589
  44,156
  46,830
  49,616
  52,520
  55,550
  58,712
  62,013
  65,461
Working capital, $m
  3,632
  4,203
  4,818
  5,477
  6,178
  6,921
  7,705
  8,529
  9,392
  10,295
  11,237
  12,218
  13,240
  14,302
  15,407
  16,554
  17,747
  18,987
  20,275
  21,615
  23,008
  24,458
  25,968
  27,540
  29,179
  30,887
  32,669
  34,528
  36,470
  38,498
Total debt, $m
  5,130
  6,923
  8,857
  10,928
  13,133
  15,468
  17,932
  20,521
  23,235
  26,072
  29,032
  32,117
  35,328
  38,668
  42,139
  45,747
  49,496
  53,392
  57,442
  61,653
  66,033
  70,590
  75,335
  80,277
  85,427
  90,796
  96,397
  102,242
  108,344
  114,718
Total liabilities, $m
  11,416
  13,210
  15,144
  17,215
  19,419
  21,755
  24,218
  26,808
  29,521
  32,358
  35,319
  38,404
  41,615
  44,954
  48,426
  52,034
  55,783
  59,679
  63,729
  67,940
  72,319
  76,877
  81,622
  86,564
  91,714
  97,083
  102,683
  108,528
  114,630
  121,005
Total equity, $m
  15,320
  17,727
  20,322
  23,100
  26,059
  29,193
  32,499
  35,974
  39,615
  43,422
  47,395
  51,535
  55,844
  60,325
  64,984
  69,825
  74,856
  80,084
  85,519
  91,169
  97,047
  103,163
  109,530
  116,162
  123,072
  130,277
  137,793
  145,636
  153,825
  162,378
Total liabilities and equity, $m
  26,736
  30,937
  35,466
  40,315
  45,478
  50,948
  56,717
  62,782
  69,136
  75,780
  82,714
  89,939
  97,459
  105,279
  113,410
  121,859
  130,639
  139,763
  149,248
  159,109
  169,366
  180,040
  191,152
  202,726
  214,786
  227,360
  240,476
  254,164
  268,455
  283,383
Debt-to-equity ratio
  0.330
  0.390
  0.440
  0.470
  0.500
  0.530
  0.550
  0.570
  0.590
  0.600
  0.610
  0.620
  0.630
  0.640
  0.650
  0.660
  0.660
  0.670
  0.670
  0.680
  0.680
  0.680
  0.690
  0.690
  0.690
  0.700
  0.700
  0.700
  0.700
  0.710
Adjusted equity ratio
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573
  0.573

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,861
  3,361
  3,899
  4,475
  5,089
  5,739
  6,425
  7,146
  7,902
  8,692
  9,650
  10,509
  11,404
  12,335
  13,302
  14,308
  15,353
  16,440
  17,570
  18,745
  19,968
  21,241
  22,566
  23,947
  25,387
  26,888
  28,455
  30,090
  31,798
  33,583
Depreciation, amort., depletion, $m
  528
  582
  640
  703
  770
  840
  915
  993
  1,075
  1,161
  1,067
  1,161
  1,258
  1,359
  1,464
  1,573
  1,686
  1,804
  1,926
  2,053
  2,186
  2,323
  2,467
  2,616
  2,772
  2,934
  3,103
  3,280
  3,464
  3,657
Funds from operations, $m
  3,389
  3,942
  4,539
  5,178
  5,859
  6,580
  7,340
  8,139
  8,977
  9,853
  10,718
  11,670
  12,662
  13,693
  14,766
  15,881
  17,039
  18,244
  19,496
  20,799
  22,154
  23,564
  25,033
  26,563
  28,159
  29,822
  31,558
  33,370
  35,263
  37,240
Change in working capital, $m
  525
  571
  615
  659
  701
  743
  784
  824
  863
  903
  942
  981
  1,022
  1,062
  1,104
  1,148
  1,193
  1,240
  1,288
  1,340
  1,393
  1,450
  1,510
  1,572
  1,638
  1,708
  1,782
  1,859
  1,941
  2,028
Cash from operations, $m
  2,864
  3,372
  3,924
  4,519
  5,157
  5,837
  6,556
  7,315
  8,114
  8,950
  9,776
  10,689
  11,640
  12,631
  13,661
  14,733
  15,847
  17,004
  18,208
  19,459
  20,760
  22,114
  23,524
  24,991
  26,520
  28,114
  29,776
  31,511
  33,321
  35,212
Maintenance CAPEX, $m
  -295
  -345
  -399
  -458
  -520
  -587
  -657
  -732
  -810
  -892
  -978
  -1,067
  -1,161
  -1,258
  -1,359
  -1,464
  -1,573
  -1,686
  -1,804
  -1,926
  -2,053
  -2,186
  -2,323
  -2,467
  -2,616
  -2,772
  -2,934
  -3,103
  -3,280
  -3,464
New CAPEX, $m
  -893
  -970
  -1,046
  -1,120
  -1,193
  -1,263
  -1,333
  -1,401
  -1,468
  -1,535
  -1,602
  -1,669
  -1,737
  -1,807
  -1,878
  -1,952
  -2,028
  -2,108
  -2,191
  -2,278
  -2,369
  -2,466
  -2,567
  -2,674
  -2,786
  -2,905
  -3,030
  -3,162
  -3,301
  -3,448
Cash from investing activities, $m
  -1,188
  -1,315
  -1,445
  -1,578
  -1,713
  -1,850
  -1,990
  -2,133
  -2,278
  -2,427
  -2,580
  -2,736
  -2,898
  -3,065
  -3,237
  -3,416
  -3,601
  -3,794
  -3,995
  -4,204
  -4,422
  -4,652
  -4,890
  -5,141
  -5,402
  -5,677
  -5,964
  -6,265
  -6,581
  -6,912
Free cash flow, $m
  1,676
  2,057
  2,479
  2,941
  3,444
  3,986
  4,566
  5,183
  5,835
  6,523
  7,196
  7,952
  8,742
  9,566
  10,425
  11,317
  12,246
  13,211
  14,213
  15,255
  16,337
  17,463
  18,633
  19,851
  21,118
  22,438
  23,812
  25,245
  26,740
  28,300
Issuance/(repayment) of debt, $m
  1,651
  1,794
  1,934
  2,071
  2,205
  2,336
  2,464
  2,589
  2,714
  2,837
  2,961
  3,085
  3,211
  3,340
  3,472
  3,608
  3,749
  3,896
  4,050
  4,211
  4,380
  4,558
  4,745
  4,942
  5,150
  5,369
  5,601
  5,845
  6,102
  6,374
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,651
  1,794
  1,934
  2,071
  2,205
  2,336
  2,464
  2,589
  2,714
  2,837
  2,961
  3,085
  3,211
  3,340
  3,472
  3,608
  3,749
  3,896
  4,050
  4,211
  4,380
  4,558
  4,745
  4,942
  5,150
  5,369
  5,601
  5,845
  6,102
  6,374
Total cash flow (excl. dividends), $m
  3,327
  3,850
  4,412
  5,012
  5,649
  6,322
  7,030
  7,772
  8,549
  9,360
  10,157
  11,037
  11,953
  12,906
  13,896
  14,925
  15,995
  17,107
  18,263
  19,466
  20,717
  22,021
  23,378
  24,793
  26,268
  27,807
  29,413
  31,090
  32,842
  34,674
Retained Cash Flow (-), $m
  -2,218
  -2,407
  -2,595
  -2,779
  -2,959
  -3,134
  -3,306
  -3,475
  -3,641
  -3,807
  -3,973
  -4,140
  -4,309
  -4,481
  -4,659
  -4,841
  -5,031
  -5,228
  -5,435
  -5,651
  -5,877
  -6,116
  -6,367
  -6,632
  -6,911
  -7,205
  -7,516
  -7,843
  -8,189
  -8,553
Prev. year cash balance distribution, $m
  279
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,387
  1,443
  1,817
  2,233
  2,690
  3,188
  3,724
  4,297
  4,908
  5,553
  6,184
  6,898
  7,645
  8,425
  9,238
  10,084
  10,964
  11,878
  12,828
  13,815
  14,840
  15,905
  17,011
  18,161
  19,357
  20,602
  21,897
  23,247
  24,654
  26,120
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  1,330
  1,321
  1,582
  1,839
  2,085
  2,313
  2,516
  2,686
  2,819
  2,911
  2,937
  2,943
  2,907
  2,828
  2,712
  2,563
  2,386
  2,188
  1,975
  1,755
  1,535
  1,320
  1,115
  925
  753
  601
  470
  360
  269
  197
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

ASML Holding N.V. is a holding company. The Company is a manufacturer of chip-making equipment. The Company is engaged in the development, production, marketing, selling and servicing of semiconductor equipment systems, consisting of lithography systems. The Company's products include systems, and installed base products and services. The Company's principal operations are in the Netherlands, the United States and Asia. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for 300 millimeter processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The Company also offers NXE systems, which are equipped with extreme ultraviolet (EUV) light source technology. The Company offers YieldStar, a wafer metrology system.

FINANCIAL RATIOS  of  ASML Holding N.V. (ASML)

Valuation Ratios
P/E Ratio 61.9
Price to Sales 13.4
Price to Book 9.3
Price to Tangible Book
Price to Cash Flow 54.7
Price to Free Cash Flow 67.9
Growth Rates
Sales Growth Rate 8.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -12.9%
Cap. Spend. - 3 Yr. Gr. Rate 8.6%
Financial Strength
Quick Ratio 16
Current Ratio 0.1
LT Debt to Equity 31.3%
Total Debt to Equity 33.8%
Interest Coverage 31
Management Effectiveness
Return On Assets 10%
Ret/ On Assets - 3 Yr. Avg. 10.5%
Return On Total Capital 13%
Ret/ On T. Cap. - 3 Yr. Avg. 14.2%
Return On Equity 16.2%
Return On Equity - 3 Yr. Avg. 16.7%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 44.8%
Gross Margin - 3 Yr. Avg. 45.1%
EBITDA Margin 30.9%
EBITDA Margin - 3 Yr. Avg. 29.2%
Operating Margin 24.4%
Oper. Margin - 3 Yr. Avg. 23.7%
Pre-Tax Margin 24.9%
Pre-Tax Margin - 3 Yr. Avg. 23.8%
Net Profit Margin 21.7%
Net Profit Margin - 3 Yr. Avg. 21.4%
Effective Tax Rate 13%
Eff/ Tax Rate - 3 Yr. Avg. 9.8%
Payout Ratio 30.3%

ASML stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ASML stock intrinsic value calculation we used $12579 million for the last fiscal year's total revenue generated by ASML Holding N.V.. The default revenue input number comes from 0001 income statement of ASML Holding N.V.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ASML stock valuation model: a) initial revenue growth rate of 16.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for ASML is calculated based on our internal credit rating of ASML Holding N.V., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of ASML Holding N.V..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ASML stock the variable cost ratio is equal to 67.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $716 million in the base year in the intrinsic value calculation for ASML stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for ASML Holding N.V..

Corporate tax rate of 27% is the nominal tax rate for ASML Holding N.V.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ASML stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ASML are equal to 42%.

Life of production assets of 17.9 years is the average useful life of capital assets used in ASML Holding N.V. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ASML is equal to 24.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $13380.4597701 million for ASML Holding N.V. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 425.652 million for ASML Holding N.V. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of ASML Holding N.V. at the current share price and the inputted number of shares is $95.2 billion.

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