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 28.35 is considered Fairly compared with the five-year average of 18.45. The fair price of Applied Materials Inc (AMAT) is between 223.97 to 279.54 according to relative valuation methord.
Relative Value
Fair Zone
223.97-279.54
Current Price：268.63
Fair
28.43
PE
1Y
3Y
5Y
Trailing
Forward
23.15
EV/EBITDA
Applied Materials Inc. (AMAT) has a current EV/EBITDA of 23.15. The 5-year average EV/EBITDA is 15.12. The thresholds are as follows: Strongly Undervalued below 9.15, Undervalued between 9.15 and 12.14, Fairly Valued between 18.11 and 12.14, Overvalued between 18.11 and 21.10, and Strongly Overvalued above 21.10. The current Forward EV/EBITDA of 23.15 falls within the Strongly Overvalued range.
24.72
EV/EBIT
Applied Materials Inc. (AMAT) has a current EV/EBIT of 24.72. The 5-year average EV/EBIT is 16.01. The thresholds are as follows: Strongly Undervalued below 9.51, Undervalued between 9.51 and 12.76, Fairly Valued between 19.25 and 12.76, Overvalued between 19.25 and 22.50, and Strongly Overvalued above 22.50. The current Forward EV/EBIT of 24.72 falls within the Strongly Overvalued range.
7.41
PS
Applied Materials Inc. (AMAT) has a current PS of 7.41. The 5-year average PS is 4.74. The thresholds are as follows: Strongly Undervalued below 2.85, Undervalued between 2.85 and 3.79, Fairly Valued between 5.69 and 3.79, Overvalued between 5.69 and 6.64, and Strongly Overvalued above 6.64. The current Forward PS of 7.41 falls within the Strongly Overvalued range.
28.18
P/OCF
Applied Materials Inc. (AMAT) has a current P/OCF of 28.18. The 5-year average P/OCF is 17.00. The thresholds are as follows: Strongly Undervalued below 9.65, Undervalued between 9.65 and 13.32, Fairly Valued between 20.67 and 13.32, Overvalued between 20.67 and 24.34, and Strongly Overvalued above 24.34. The current Forward P/OCF of 28.18 falls within the Strongly Overvalued range.
37.65
P/FCF
Applied Materials Inc. (AMAT) has a current P/FCF of 37.65. The 5-year average P/FCF is 19.80. The thresholds are as follows: Strongly Undervalued below 10.48, Undervalued between 10.48 and 15.14, Fairly Valued between 24.46 and 15.14, Overvalued between 24.46 and 29.12, and Strongly Overvalued above 29.12. The current Forward P/FCF of 37.65 falls within the Strongly Overvalued range.
Applied Materials Inc (AMAT) has a current Price-to-Book (P/B) ratio of 10.45. Compared to its 3-year average P/B ratio of 8.07 , the current P/B ratio is approximately 29.47% higher. Relative to its 5-year average P/B ratio of 8.47, the current P/B ratio is about 23.40% higher. Applied Materials Inc (AMAT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.68%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.63% , the current FCF yield is about -100.00% lower.
10.48
P/B
Median3y
8.07
Median5y
8.47
2.66
FCF Yield
Median3y
4.68
Median5y
4.63
Competitors Valuation Multiple
The average P/S ratio for AMAT's competitors is , providing a benchmark for relative valuation. Applied Materials Inc Corp (AMAT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -3.48%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AMAT increased by 65.68% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.99 to 31.11.
The secondary factor is the Margin Expansion, contributed 13.55%to the performance.
Overall, the performance of AMAT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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