AMAT Valuation

Applied Materials Inc

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162.490

+2.65(1.658%)1D

Overview
Forecast
Valuation
Earnings

AMAT Relative Valuation

AMAT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AMAT is overvalued; if below, it's undervalued.

Historical Valuation

Applied Materials Inc (AMAT) is now in the Fair zone, suggesting that its current forward PE ratio of 17.98 is considered Fairly compared with the five-year average of 17.73. The fair price of Applied Materials Inc (AMAT) is between 149.95 to 205.89 according to relative valuation methord.

Relative Value

Fair Zone

149.95-205.89

Current Price：162.49

Fair

17.98

Trailing

Forward

14.50

EV/EBITDA

Applied Materials Inc. (AMAT) has a current EV/EBITDA of 14.50. The 5-year average EV/EBITDA is 14.59. The thresholds are as follows: Strongly Undervalued below 8.49, Undervalued between 8.49 and 11.54, Fairly Valued between 17.65 and 11.54, Overvalued between 17.65 and 20.70, and Strongly Overvalued above 20.70. The current Forward EV/EBITDA of 14.50 falls within the Historic Trend Line -Fairly Valued range.

15.56

EV/EBIT

Applied Materials Inc. (AMAT) has a current EV/EBIT of 15.56. The 5-year average EV/EBIT is 15.44. The thresholds are as follows: Strongly Undervalued below 8.87, Undervalued between 8.87 and 12.15, Fairly Valued between 18.72 and 12.15, Overvalued between 18.72 and 22.01, and Strongly Overvalued above 22.01. The current Forward EV/EBIT of 15.56 falls within the Historic Trend Line -Fairly Valued range.

4.54

Applied Materials Inc. (AMAT) has a current PS of 4.54. The 5-year average PS is 4.56. The thresholds are as follows: Strongly Undervalued below 2.56, Undervalued between 2.56 and 3.56, Fairly Valued between 5.55 and 3.56, Overvalued between 5.55 and 6.55, and Strongly Overvalued above 6.55. The current Forward PS of 4.54 falls within the Historic Trend Line -Fairly Valued range.

15.09

P/OCF

Applied Materials Inc. (AMAT) has a current P/OCF of 15.09. The 5-year average P/OCF is 16.42. The thresholds are as follows: Strongly Undervalued below 8.99, Undervalued between 8.99 and 12.71, Fairly Valued between 20.13 and 12.71, Overvalued between 20.13 and 23.84, and Strongly Overvalued above 23.84. The current Forward P/OCF of 15.09 falls within the Historic Trend Line -Fairly Valued range.

19.69

P/FCF

Applied Materials Inc. (AMAT) has a current P/FCF of 19.69. The 5-year average P/FCF is 18.91. The thresholds are as follows: Strongly Undervalued below 10.15, Undervalued between 10.15 and 14.53, Fairly Valued between 23.28 and 14.53, Overvalued between 23.28 and 27.66, and Strongly Overvalued above 27.66. The current Forward P/FCF of 19.69 falls within the Historic Trend Line -Fairly Valued range.

Applied Materials Inc (AMAT) has a current Price-to-Book (P/B) ratio of 6.66. Compared to its 3-year average P/B ratio of 7.88 , the current P/B ratio is approximately -15.52% higher. Relative to its 5-year average P/B ratio of 8.32, the current P/B ratio is about -20.00% higher. Applied Materials Inc (AMAT) has a Forward Free Cash Flow (FCF) yield of approximately 4.57%. Compared to its 3-year average FCF yield of 4.93%, the current FCF yield is approximately -7.23% lower. Relative to its 5-year average FCF yield of 4.73% , the current FCF yield is about -3.36% lower.

6.66

P/B

Median3y

7.88

Median5y

8.32

4.57

FCF Yield

Median3y

4.93

Median5y

4.73

Competitors Valuation Multiple

The average P/S ratio for AMAT's competitors is 3.99, providing a benchmark for relative valuation. Applied Materials Inc Corp (AMAT) exhibits a P/S ratio of 4.54, which is 13.99% above the industry average. Given its robust revenue growth of 7.73%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

AMAT.O

Applied Materials Inc

Trane Technologies PLC

Johnson Controls International PLC

Performance Decomposition

Market capitalization of AMAT decreased by 17.63% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 6.78B to 7.30B.

The secondary factor is the Margin Expansion, contributed -3.14%to the performance.

Overall, the performance of AMAT in the past 1 year is driven by Revenue Growth. Which is more sustainable.

7.73%

6.78B → 7.30B

Revenue Growth

-3.14%

25.15 → 24.36

Margin Expansion

-22.22%

24.96 → 19.42

P/E Change

-17.63%