Applied Materials, Inc.

BASE:AMATD Stock Report

Market Cap: US$140.8b

Applied Materials Valuation

Is AMATD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AMATD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMATD ($36.3) is trading below our estimate of fair value ($36.74)

Significantly Below Fair Value: AMATD is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMATD?

Key metric: As AMATD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AMATD. This is calculated by dividing AMATD's market cap by their current earnings.
What is AMATD's PE Ratio?
PE Ratio19.6x
EarningsUS$7.18b
Market CapUS$140.75b

Price to Earnings Ratio vs Peers

How does AMATD's PE Ratio compare to its peers?

The above table shows the PE ratio for AMATD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.9x
28x13.6%US$82.2b
LRCX Lam Research
22.4x12.3%US$90.1b
ASML ASML Holding
35.7x18.8%€247.5b
8035 Tokyo Electron
21.5x13.2%JP¥10.1t
AMATD Applied Materials
19.6x7.8%US$140.8b

Price-To-Earnings vs Peers: AMATD is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (26.9x).


Price to Earnings Ratio vs Industry

How does AMATD's PE Ratio compare vs other companies in the Global Semiconductor Industry?

18 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AMATD 19.6xIndustry Avg. 30.9xNo. of Companies94PE020406080100+
18 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMATD is good value based on its Price-To-Earnings Ratio (19.6x) compared to the Global Semiconductor industry average (30.9x).


Price to Earnings Ratio vs Fair Ratio

What is AMATD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMATD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AMATD's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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