Quiver Quantitative
In case you're wondering where personal financial incentives lie for many politicians:

The annual salary for a member of Congress is $174K

There are already dozens of members who have made more than $174K in the stock market so far this year.

We are just 27 days into the year. https://t.co/eSYnos4yCn
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Dimitry Nakhla | Babylon Capital®
Less than 9 months ago, $ASML traded for ~26x NTM earnings & $687💵 — it’s always amazing how quickly sentiment can change.

A quality valuation analysis on $ASML 🧘🏽‍♂️

•NTM P/E Ratio: 26.34x
•10-Year Mean: 31.08x

•NTM FCF Yield: 3.39%
•10-Year Mean: 3.09%

As you can see, $ASML appears to be trading below fair value

Going forward, investors can receive ~18% MORE in earnings per share & ~10% MORE in FCF per share🧠***

Before we get into valuation, let’s take a look at why $ASML is an excellent business (*Financials in USD*)

BALANCE SHEET✅
•Cash & Short Term Inv: $9.85B
•Long-Term Debt: $3.98B

$ASML has a strong balance sheet & 70x FFO Interest Coverage

RETURN ON CAPITAL✅
•2021: 43.8%
•2022: 48.0%
•2023: 48.7%
•2024: 38.3%
•LTM: 48.2%

RETURN ON EQUITY✅
•2021: 49.0%
•2022: 59.4%
•2023: 70.4%
•2024: 47.4%
•LTM: 55.6%

$ASML has excellent return metrics, highlighting the financial efficiency of the business

REVENUES✅
•2014: $7.09B
•2024: $29.28B
•CAGR: 15.23%

FREE CASH FLOW*
• $ASML FCF is very sporadic due to heavy capital expenditures & isn’t necessarily the most reliable way to analyze the company’s value

NORMALIZED EPS✅
•2014: $3.15
•2024: $20.03
•CAGR: 20.31%

SHARE BUYBACKS✅
•2018 Shares Outstanding: 426.40M
•LTM Shares Outstanding: 393.30M

By reducing its shares outstanding ~7.7%, $ASML increased its EPS by ~8.3% (assuming 0 growth)

MARGINS✅
•LTM Gross Margins: 52.0%
•LTM Operating Margins: 33.8%
•LTM Net Income Margins: 28.3%

***NOW TO VALUATION 🧠

As stated above, investors can expect to receive ~18% MORE in EPS & 10% MORE in FCF per share

Using Benjamin Graham’s 2G rule of thumb, $ASML has to grow earnings at a 13.17% CAGR over the next several years to justify its valuation

Today, analysts anticipate 2025 - 2027 EPS growth over the next few years to be more than the (13.17%) required growth rate:

2025E: $26.60 (21.6% YoY) *FY Dec
2026E: $30.75 (15.6% YoY)
2027E: $37.29 (20.7% YoY)

$ASML has a decent track record of meeting analyst estimates ~2 years out. HOWEVER, let’s be conservative & assume $ASML ends 2027 with $35.00*** in EPS (~6% below current estimates) & see its CAGR potential assuming different multiples:

29x P/E: $1,015💵 … ~17.0% CAGR

28x P/E: $980💵 … ~15.4% CAGR

27x P/E: $945💵 … ~13.9% CAGR

26x P/E: $910💵 … ~12.3% CAGR

25x P/E: $875💵 … ~10.7% CAGR

As you can see, $ASML appears to have attractive return potential EVEN if we assume greater or equal to 25x EPS (below its 10-year mean, current multiple, & justified given its quality, moat & growth rate)

Today at $687💵 $ASML appears to be a strong consideration for investment, albeit with extreme volatility

Additionally, we have some margin of safety by relying on a lower multiple & lower growth rate

As I’ve stated before, given its volatility, however, it’s wise to piece into $ASML — this way, you enhance your margin of safety while also positioning yourself to “win-win” if the stock moves up or down in the short-term 💵

#stocks #investing
___

𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.

𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.

𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛[...]

𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲. - Dimitry Nakhla | Babylon Capital® tweet

Quiver Quantitative
UPDATE: Democrats now have a 79% chance of winning the House in 2026.

Odds have continued to rise over the last week. https://t.co/wb7uqxuOdu
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AkhenOsiris
RT @JerryCap: $TTD looks like it's headed to zero
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AkhenOsiris
Fan favorite $IOT at 1.5 year lows...nasty 33% correction in 6 weeks
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Dimitry Nakhla | Babylon Capital®
If AWS & Ads continue to accelerate for a third straight quarter, it wouldn’t surprise me to see $AMZN trade above $275💵

Since 2018, $AMZN has averaged ~24x P/OCF

At $275, $AMZN would still be ~16x 2026 P/OCF with OCF expected to grow >20% annually from 2026–2028 https://t.co/N1lWSlyez6
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God of Prompt
this guy cooks the best articles

https://t.co/XXdYeXQwAo - Machina
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Brady Long
RT @thisguyknowsai: Gemini 3.0 Pro just killed consulting as we know it.

Here are the 3 prompts I use to get McKinsey-grade answers instantly 👇
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God of Prompt
RT @godofprompt: How to write prompts that make AI give you exactly what's in your head:
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God of Prompt
RT @godofprompt: if you’re building with n8n, use @YTScribeAI

Our API is live!

Integrate YTScribe into your automated workflows.

Get your key 👉 https://t.co/t5Kd3HClbX - YTScribe AI
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