Should you buy ASML stock? (October 2023)

Don't miss another video, join my new website: https://www.3minutebreakdowns.com This company’s machines make some of the world’s most advanced computer chips and it’s the only company in the world that can do it. ASML is a dutch firm that has become the most valuable tech company in Europe. At the current share price, the company has a valuation of 215 billion euros. Microchips are made by building up tiny, complex patterns of transistors and switches on silicon wafer, layer by layer. And ASML’s technology can work at incredibly small scale. It’s revenue over the last 12 months was 27 billion with 7.6 billion of net income and 10 billion of ebitda. That means the stock is valued at 8 times revenue, 22 times ebitda or 28 times earnings. That’s expensive but that’s because ASML’s products are highly sought after by chipmakers all over the world. And ASML’s share price increase has been underpinned by strong growth in electronic devices and the explosion in artificial intelligence. Revenue has almost tripled from 9 billion in 2017. But revenue growth is not the only thing that ASML has going for it. During the same period, gross margins have increased from 45% to 51%, which is a great indicator of ASML’s pricing power. The operating margin of 33% is also outstanding for a manufacturing company. #asmlstock #investing #stockmarket #stocks