I've been watching ASML for a while and I use Morningstar's FairValue as one of the indicators. ASML is listed on both NASDAQ and Amsterdam, with FV @ USD800 and EUR696 respectively.
After updating the prices today, ASML USD is 40% below the FV, which I use as a guidance to start a position. However ASML EUR is 35% below. Upon further checking, I realised this is due to EUR has depreciated about 10% YTD against USD. Since ASML is based in the Netherlands, I believe the FV conversion should be from EUR to USD, which means FV in USD should be about $730, making it 35% below FV.
Putting aside whether Morningstar's FV is a good indicator, or whether 35%, 40% below that FV is a good entry price, I'd like to discuss if it's a good idea to convert to EUR to buy the same stock in Amsterdam? With strong USD at the moment, European stocks are already at a discount, and I believe eventually interest rate has to come down, which means USD cannot stay strong forever, so it seems like a good move to take advantage of potential gains in both FX and stock.
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