$ASML Holding NV(ASML)$is an innovation leader in the semiconductor industry which provides chipmakers with everything they need from hardware, software and services to mass produce patterns on silicon through lithography.

Over the past few years, ASML has nearly doubled its market share to 62% and is now the dominant provider of lithography system shipments worldwide. The company possesses a strong competitive advantage and is the only chipmaker capable of harnessing extreme ultraviolet” (EUV) light technology to allow the etching of smaller semiconductor components. As a result, the world’s three leading chipmakers, $Intel(INTC)$, Samsung and $Taiwan Semiconductor Manufacturing(TSM)$have become extremely reliant on ASML’s products and services.

On a forward basis, ASML is currently trading at an EV/EBITDA multiple of 21.12x which is lower than its historical mean of 25.03x. Therefore, the business is currently undervalued and is trading at a discount to its intrinsic value.