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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
ASML Holding NV's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.19. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for ASML Holding NV's Degree of Operating Leverage or its related term are showing as below:
XSWX:ASML's Degree of Operating Leverage is ranked worse than 53.76% of 1010
companies
in the Semiconductors industry
Industry Median: 0.955
vs XSWX:ASML: 1.19
ASML Holding NV (XSWX:ASML) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
ASML Holding NV Degree of Operating Leverage Related Terms
ASML Holding NV Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for ASML Holding NV's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASML Holding NV Degree of Operating Leverage Chart
XSWX:ASML vs AMAT, LRCX, KLAC: Degree of Operating Leverage Comparison
For the Semiconductor Equipment & Materials subindustry, ASML Holding NV's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ASML Holding NV Degree of Operating Leverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ASML Holding NV's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where ASML Holding NV's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.19 mean?
ASML Holding NV (XSWX:ASML) has a Degree of Operating Leverage of 1.19 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for ASML Holding NV and its competitors. According to the industry distribution chart, ASML Holding NV ranks #543 out of 1010 companies in the Semiconductors industry, placing it in the top 53.8%.
Is ASML Holding NV's Degree of Operating Leverage too high?
ASML Holding NV's current Degree of Operating Leverage is 1.19. The Semiconductors industry median Degree of Operating Leverage is 0.96. ASML Holding NV's value of 1.19 is 24.6% above this industry median. Based on the distribution chart, ASML Holding NV ranks #543 out of 1010 companies in the Semiconductors industry, which is below the industry midpoint. Overall, ASML Holding NV has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ASML Holding NV's Degree of Operating Leverage compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, ASML Holding NV ranks #543 out of 1010 companies for Degree of Operating Leverage. This places ASML Holding NV in the lower half of its industry. The industry median Degree of Operating Leverage is 0.96. ASML Holding NV's value of 1.19 is 24.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Semiconductors company?
The median Degree of Operating Leverage among Semiconductors companies is 0.96, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ASML Holding NV's current Degree of Operating Leverage of 1.19 is 24.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for ASML Holding NV and its competitors. For the Semiconductors industry, the median Degree of Operating Leverage is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ASML Holding NV's current Degree of Operating Leverage is 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ASML Holding NV stock overvalued right now?
Based on GuruFocus' analysis, ASML Holding NV (XSWX:ASML) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF926.50, compared to a current price of CHF1,471.20 — trading 58.8% above its estimated fair value. The current Degree of Operating Leverage is 1.19 and 24.6% above the Semiconductors industry median of 0.96. ASML Holding NV's overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For ASML Holding NV (XSWX:ASML), the current Degree of Operating Leverage is 1.19 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ASML Holding NV (XSWX:ASML) Overvalued in 2026?
Based on GuruFocus' analysis, ASML Holding NV stock appears to be overvalued.
The current stock price of CHF1,471.20 is trading 58.8% above its estimated GF Value™ of CHF926.50.
GuruFocus considers ASML Holding NV to be Significantly Overvalued.
Key valuation signals for XSWX:ASML:
Degree of Operating Leverage: 1.19
GF Value™: CHF926.50 vs. price of CHF1,471.20 (58.8% above fair value)
Industry Position: 24.6% above the Semiconductors median (#543 of 1010)
No single metric tells the full story. See the XSWX:ASML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ASML is the leader in lithography systems for manufacturing semiconductors with 90% market share. Lithography is the process in which a light source is used to expose circuit patterns from a photo mask onto a semiconductor wafer. Lithography allows chipmakers to increase the number of transistors on the same area of silicon, with lithography historically representing a high portion of the cost of making cutting-edge chips. ASML outsources the manufacturing of most of its parts, acting like an assembler. ASML's largest clients are TSMC, Samsung, Intel, SK Hynix, and Micron.
80GF Score
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