CASH
MEDIUMOperating cash flow
Operating cash flow: €747.7M → €1.70B (+127.8% YOY)
Higher net income supports the operating cash flow increase in a partial statement bridge.
ASML
Current state
Current price
$1,736.26
Market capitalization
$665.3B
Valuation date
2026-09-23
Model-Implied Valuation Gap
relative to current market capitalization
Model equity value
$194.5B
Previous gap
-71.5%
Change vs prior
+0.8% pp
Model & data status
Why the model sees this gap
ASML's standard DCF implies equity value substantially below its market capitalization. The latest market-only update modestly narrowed this negative gap as market capitalization declined, partly offset by adverse FX translation. The broader recent widening reflects market re-rating alongside earlier reductions in base FCFF and forecast growth; a subsequent FCFF recovery provided only a partial offset. This is a model-dependent valuation comparison, not a recommendation or a certain fair-value conclusion.
Primary drivers
Central research view
Point-in-time states
What changed
The market-to-current update modestly narrowed the still-substantial negative gap.
Why changed
Lower market capitalization narrowed the comparison, partly offset by adverse FX. No operating or balance-sheet factor appears in the supplied attribution.
What changed
The negative gap widened further.
Why changed
Higher market capitalization, lower cash and adverse FX outweighed improved FCFF, lower debt and a modestly higher growth input.
What changed
The negative gap widened with the new operating period.
Why changed
Reduced FCFF and forecast growth weakened modeled value more than lower market capitalization narrowed the comparison. FX added a small adverse effect.
What changed
The same-period refresh slightly narrowed the negative gap.
Why changed
Higher cash and lower debt outweighed adverse FX and a higher market capitalization.
What changed
The negative gap widened despite stronger modeled cash flow.
Why changed
Higher market capitalization more than offset the increase in base FCFF and favorable FX.
What changed
The negative gap widened substantially.
Why changed
Higher market capitalization was the main cause, reinforced by lower FCFF. Favorable FX only partly offset those effects.
Fundamental intelligence
CASH
MEDIUMOperating cash flow: €747.7M → €1.70B (+127.8% YOY)
Higher net income supports the operating cash flow increase in a partial statement bridge.
EARNINGS QUALITY
MEDIUMNet income: €2.29B → €2.92B (+27.4% YOY)
A partial statement bridge links higher net income to stronger operating income, partly offset by a larger tax provision.
GROWTH
UnverifiedRevenue: €7.69B → €9.33B (+21.3% YOY)
No verifiable explanation is supplied for quarterly year-over-year revenue growth.
PROFITABILITY
MEDIUMOperating income: €2.66B → €3.46B (+29.7% YOY)
The partial statement bridge shows higher gross profit outweighing increased operating expenses.
Deterministic review
Earnings context
TTM diluted EPS
$31.371
P/E
55.3×
Latest quarter EPS
$7.58
Status
Pass
Reliability & provenance