ASML Holding NV

: equity valuation

Abstract

The semiconductor sector, which has undergone stressful periods due to high demand resulting in a chip shortage, could view the upcoming phases as growth opportunities resulting from advancements in various sectors. This thesis examines the performance of ASML Holding NV, a Netherlands-based semiconductor industry member founded in the 1980s that is presently the primary provider of lithography systems in the industry. A DCF valuation has been developed, supplemented by a relative valuation framework that considers the specific industry context. The valuation is underpinned by assumptions that account for the company’s production capabilities and the expectation that its technological progress will align with the industry’s requirements and the wider macroeconomic situation. The results are then compared to an equity research prepared by investment bank analysts. Finally, according to the model, the company has been valued at €677, resulting in a HOLD recommendation.

Date of Award	24 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)