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ValuationASML.ASIn Progress

ASML DCF Valuation Model

Two-stage discounted cash flow model for ASML Holding with sensitivity analysis on WACC and terminal growth.

01

Overview

A two-stage discounted cash flow model for ASML Holding N.V. — the Dutch semiconductor equipment maker behind EUV lithography. The model projects free cash flow over a 10-year explicit forecast horizon, then applies a Gordon-growth terminal value. All inputs are exposed as drivers in a single assumptions tab.

02

Why this project matters

ASML sits at a structural bottleneck in the global semiconductor supply chain. Valuing the business well requires reasoning about end-market cyclicality, EUV adoption curves, and reinvestment intensity — the kind of judgment a clean DCF forces you to make explicit.

03

Tools used

ExcelPythonStreamlit
04

Key assumptions

Revenue CAGR (yrs 1–5)11.8%
Revenue CAGR (yrs 6–10)6.5%
Terminal growth2.5%
Steady-state EBITDA margin34.0%
Effective tax rate19.0%
WACC8.42%
Beta (5y)1.05
Risk-free rate2.85%
05

Screenshots / visuals

Output snapshot — base case · sample data
Enterprise Value
€312.4B
+4.2% vs. market
Implied Share Price
€812.50
+6.1% upside
Sensitivity Range
€720 – €905
WACC ±50bps
Terminal Value % of EV
68%
[ sensitivity table · WACC × terminal growth ]
06

What I learned

  • Most of the model's output is dictated by 3–4 assumptions; documenting them clearly is worth more than adding tabs.
  • Splitting drivers from outputs and locking formula columns made iteration on scenarios dramatically faster.
  • A clean two-variable sensitivity table is the single most useful page for a reader.
07

Next improvements

  • Add scenario manager (bear / base / bull) with one-click switching.
  • Wire the model to a Python notebook to refresh consensus assumptions from public filings.
  • Build a Streamlit front-end so a reader can move WACC and growth themselves.
Disclaimer: All figures shown are sample / demo data for illustration only. Not investment advice.