10 Cap ASML

Data pulled via yfinance.

I recently ran a 10 Cap valuation on ASML using data pulled from yfinance.

One specific issue I ran into was that Maintenance CapEx wasn't explicitly available in the reports.

To get around this, I calculated the valuation using two different proxies for Maintenance CapEx:

Method 1: Depreciation & Amortization
Many investors use D&A as a direct proxy for Maintenance CapEx. The logic here is that depreciation represents the financial cost of "wear and tear" on existing assets that must eventually be replaced to keep operations running.

Method 2: Total CapEx (Conservative)
Here, I subtracted the Total Capital Expenditure. This assumes that every dollar spent on equipment is necessary just to survive. This is obviously untrue for a company like ASML, as they are spending billions on new factories for growth. This provides a "safe floor" for the valuation.

Conclusion:
Regardless of which method you use, the Cap Rate comes out significantly below the 10% target (around 2.5% - 2.8%), suggesting the current price relies heavily on future growth expectations. This makes sense because they will be the only supplier of this kind of machines for some time for chip production.