AMAT PE Ratio & Valuation, Is AMAT Overvalued

Historical Valuation

Applied Materials Inc (AMAT) is now in the Overvalued zone, suggesting that its current forward PE ratio of 28.28 is considered Overvalued compared with the five-year average of 18.75. The fair price of Applied Materials Inc (AMAT) is between 225.22 to 299.54 according to relative valuation method. Compared to the current price of 345.88 USD , Applied Materials Inc By Overvalued By 15.47%.

Relative Value

Fair Zone

225.22-299.54

Current Price：345.88

15.47%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Applied Materials Inc (AMAT) has a current Price-to-Book (P/B) ratio of 10.44. Compared to its 3-year average P/B ratio of 8.20, the current P/B ratio is approximately 27.42% higher. Relative to its 5-year average P/B ratio of 8.49, the current P/B ratio is about 22.95% higher. Applied Materials Inc (AMAT) has a Forward Free Cash Flow (FCF) yield of approximately 2.67%. Compared to its 3-year average FCF yield of 4.62%, the current FCF yield is approximately -42.11% lower. Relative to its 5-year average FCF yield of 4.64%, the current FCF yield is about -42.39% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for AMAT competitors is 5.39, providing a benchmark for relative valuation. Applied Materials Inc Corp (AMAT.O) exhibits a P/S ratio of 7.38, which is 36.93% above the industry average. Given its robust revenue growth of -2.15%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of AMAT increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of AMAT in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is AMAT currently overvalued or undervalued?

What is Applied Materials Inc (AMAT) fair value?

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. The fair price of Applied Materials Inc (AMAT) is between 225.22 to 299.54 according to relative valuation method.

How does AMAT's valuation metrics compare to the industry average?

The average P/S ratio for AMAT's competitors is 5.39, providing a benchmark for relative valuation. Applied Materials Inc Corp (AMAT) exhibits a P/S ratio of 7.38, which is 36.93% above the industry average. Given its robust revenue growth of -2.15%, this premium appears unsustainable.

What is the current P/B ratio for Applied Materials Inc (AMAT) as of Mar 11 2026?

As of Mar 11 2026, Applied Materials Inc (AMAT) has a P/B ratio of 10.44. This indicates that the market values AMAT at 10.44 times its book value.

What is the current FCF Yield for Applied Materials Inc (AMAT) as of Mar 11 2026?

As of Mar 11 2026, Applied Materials Inc (AMAT) has a FCF Yield of 2.67%. This means that for every dollar of Applied Materials Inc's market capitalization, the company generates 2.67 cents in free cash flow.

What is the current Forward P/E ratio for Applied Materials Inc (AMAT) as of Mar 11 2026?

As of Mar 11 2026, Applied Materials Inc (AMAT) has a Forward P/E ratio of 28.28. This means the market is willing to pay $28.28 for every dollar of Applied Materials Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Applied Materials Inc (AMAT) as of Mar 11 2026?

As of Mar 11 2026, Applied Materials Inc (AMAT) has a Forward P/S ratio of 7.38. This means the market is valuing AMAT at $7.38 for every dollar of expected revenue over the next 12 months.

AMAT Valuation