Hi,
I'm looking at ASML at a potential stock and try to find a fair value to see if the current price is undervalued or overvalued.
Based on its Free Cash Flow (FCF) between 2014-2022, I obtain a CARGO of around 30%, and an average growth of 45%. As per finviz estimates an EPS growth of around 20% over the next 5 years.
Considering a growth rate of 18% over the next 10 years, a discount (WAAC) rate of 10%, I obtain a fair value $700, so its current price of $660 means it is undervalued.
However, I mean I remember that ASML stated that they expect some headwinds for the rest of the year, so I'm considering to DCA into the stock when it hits around $630.
I'm curious to know your thoughts on the stock, and at what price you seem to be tempted to enter a position.
Looking forward to hearing your inputs.
Cheers,
Leave a Reply