ASML’s valuation is still under pressure while the rest of the semiconductor sector keeps climbing. The SOX index is up 60% since April. ASML is not. The stock is down 22.3% year-to-date. Price-to-earnings ratio has dropped to 24.07. That’s the lowest level in 5 years. It’s also 60% below its 2021 peak of 64.90 and 98% below its all-time high of 1,445.53.
At Monday’s close, ASML traded at $716.93. Post-market ticked up to $719.80. Market cap sits at $277.45 billion. Volume hit 3.37 million shares. Dividend yield is 1.01%. P/E ratio now trails peers like KLA at 33.86 and Lam Research at 28.04. Applied Materials is holding 23.17. ASML’s forward P/E is 28.74. That’s still below its 3-year average of 37.02 and 5-year average of 38.83.
Trailing twelve-month EPS is $27.22. Net income stands at $10.96 billion. Revenue for the last quarter came in at $7.26 billion. Gross margin is holding at 52.5%. EUV system sales remain strong. High-NA machines are now in production at one customer. ASML shipped 53 EUV units in 2023 worth $9.21 billion. That’s 42% of system revenue.
Local voices in Eindhoven say the pullback is shaking retail holders. One Dutch investor told FD, “It’s not the tech. It’s the timing. Everyone’s chasing AI, but ASML’s cycle is slower.” Foundry orders have cooled. Memory customers are cautious. But management reiterated its 2030 roadmap. Revenue targets range from $44 billion to $60 billion. Net income could hit $22.8 billion. That implies a forward multiple between 11 and 18.
The broader market is pricing in faster growth. Nvidia, AMD, and Broadcom are riding the AI wave. ASML is still building the tools. EUV adoption is steady, not explosive. But the company holds a monopoly on high-end lithography. No real competition. No substitute for what it makes.
The sell-off may be overdone. Or it may reflect a reset in expectations. Either way, the valuation is back to 2019 levels. That’s before the EUV boom. Before the margin expansion. Before the AI hype. Traders are watching the $700 level. Below that, technicals open to $675. Above $735, momentum could return.