Hi! If this company would be American it would be much more expensive. Today I present you the most important company in the semiconductor industry- ASML Holding. You may think about semiconductors as “pick and shovels”. In that way ASML is “pick and shovel of picks and shovels”.
Great work here. Glad I found you, I look forward to more. I was looking at the entire semiconductor industry and when I started to understand what kind of a monopoly ASML is I got excited...but when you do a DCF analysis on them you will notice that majority of their market value is coming from cash flows generated after like 30 years...This means the market is saying that no other players will enter the market, compete hard enough. Throughout history big computer companies (IBM), Intel, have fallen behind. This for me is the biggest risk. You would be paying dearly (for a monopoly sure...) but it's still hard to bet that they will maintain such a monopoly in future in such a lucrative space
Great work here. Glad I found you, I look forward to more. I was looking at the entire semiconductor industry and when I started to understand what kind of a monopoly ASML is I got excited...but when you do a DCF analysis on them you will notice that majority of their market value is coming from cash flows generated after like 30 years...This means the market is saying that no other players will enter the market, compete hard enough. Throughout history big computer companies (IBM), Intel, have fallen behind. This for me is the biggest risk. You would be paying dearly (for a monopoly sure...) but it's still hard to bet that they will maintain such a monopoly in future in such a lucrative space