Applied Materials, Inc.

SWX:AMAT Stock Report

Market Cap: CHF 163.6b

Applied Materials Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 AMAT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMAT (CHF209.9) is trading above our estimate of fair value (CHF145.79)

Significantly Below Fair Value: AMAT is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AMAT. This is calculated by dividing AMAT's market cap by their current earnings.
What is AMAT's PE Ratio?
PE Ratio29.4x
EarningsUS$7.00b
Market CapUS$205.54b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AMAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.1x
LRCX Lam Research
34.7x9.09%US$201.6b
KLAC KLA
37x10.04%US$156.9b
8035 Tokyo Electron
26.6x9.12%JP¥14.4t
ASML ASML Holding
37.9x12.05%€358.3b
AMAT Applied Materials
29.4x8.67%CHF 205.5b

Price-To-Earnings vs Peers: AMAT is good value based on its Price-To-Earnings Ratio (29.4x) compared to the peer average (34.1x).

Price to Earnings Ratio vs Industry

How does AMAT's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AMAT 29.4xIndustry Avg. 38.4xNo. of Companies3PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMAT is good value based on its Price-To-Earnings Ratio (29.4x) compared to the European Semiconductor industry average (38.3x).

Price to Earnings Ratio vs Fair Ratio

What is AMAT'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.

AMAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AMAT'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?

The above table shows the analyst AMAT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 209.90
CHF 197.80
-5.76%
13.11%CHF 250.80CHF 143.31n/a32
Dec ’26n/a
CHF 196.18
0%
13.54%CHF 241.45CHF 136.82n/a32
Nov ’26n/a
CHF 176.92
0%
14.11%CHF 213.23CHF 128.74n/a31
Oct ’26n/a
CHF 157.77
0%
9.80%CHF 191.40CHF 127.60n/a31
Sep ’26n/a
CHF 155.70
0%
9.74%CHF 192.04CHF 128.03n/a31
Aug ’26n/a
CHF 163.73
0%
10.77%CHF 200.80CHF 122.09n/a32
Jul ’26n/a
CHF 156.01
0%
12.82%CHF 198.09CHF 95.08n/a34
Jun ’26n/a
CHF 162.93
0%
10.99%CHF 205.78CHF 125.11n/a33
May ’26n/a
CHF 167.06
0%
12.82%CHF 206.99CHF 125.85n/a33
Apr ’26n/a
CHF 181.94
0%
11.17%CHF 220.45CHF 144.62n/a33
Mar ’26n/a
CHF 187.09
0%
10.68%CHF 225.71CHF 148.06n/a33
Feb ’26n/a
CHF 190.66
0%
11.93%CHF 226.05CHF 148.29n/a34
Jan ’26n/a
CHF 192.29
0%
12.29%CHF 225.56CHF 139.85n/a33
Dec ’25n/a
CHF 192.16
0%
10.91%CHF 220.75CHF 136.86n/a31
Nov ’25n/a
CHF 199.62
0%
10.34%CHF 242.53CHF 160.25n/a31
Oct ’25n/a
CHF 198.70
0%
10.40%CHF 236.96CHF 156.57n/a31
Sep ’25n/a
CHF 202.96
0%
9.80%CHF 238.06CHF 164.09n/a31
Aug ’25n/a
CHF 215.75
0%
11.30%CHF 263.30CHF 147.45n/a31
Jul ’25n/a
CHF 212.69
0%
11.23%CHF 270.92CHF 151.71n/a31
Jun ’25n/a
CHF 209.00
0%
11.15%CHF 234.90CHF 149.07n/a31
May ’25n/a
CHF 202.43
0%
13.05%CHF 238.98CHF 139.71n/a31
Apr ’25n/a
CHF 187.31
0%
14.93%CHF 220.90CHF 121.94n/a31
Mar ’25n/a
CHF 184.55
0%
14.97%CHF 219.66CHF 121.25n/a31
Feb ’25n/a
CHF 146.94
0%
9.46%CHF 185.26CHF 118.91n/a31
Jan ’25n/a
CHF 142.87
0%
9.67%CHF 160.46CHF 104.08n/a31
Dec ’24n/a
CHF 142.96
0%
9.33%CHF 163.50CHF 106.05n/a31
CHF 201.18
Fair Value
4.3% overvalued intrinsic discount
32
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/12/14 23:39
End of Day Share Price 2025/12/12 00:00
Earnings2025/10/26
Annual Earnings2025/10/26

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Applied Materials, Inc. is covered by 50 analysts. 33 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James FontanelliArete Research Services LLP
James KelleherArgus Research Company
Christopher MuseBarclays