Applied Materials, Inc.

XTRA:AP2 Stock Report

Market Cap: €134.1b

Applied Materials Valuation

Is AP2 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 AP2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€203.76
Fair Value
17.9% undervalued intrinsic discount
33
Number of Analysts

Below Fair Value: AP2 (€167.2) is trading below our estimate of fair value (€203.76)

Significantly Below Fair Value: AP2 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 AP2?

Key metric: As AP2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AP2. This is calculated by dividing AP2's market cap by their current earnings.
What is AP2's PE Ratio?
PE Ratio22x
EarningsUS$6.34b
Market CapUS$139.78b

Price to Earnings Ratio vs Peers

How does AP2's PE Ratio compare to its peers?

The above table shows the PE ratio for AP2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.8x
WAF Siltronic
14.9x-68.6%€1.4b
IFX Infineon Technologies
35.4x22.7%€49.1b
AIXA AIXTRON
13.7x-3.7%€1.6b
SMHN SÜSS MicroTec
19.2x-5.5%€799.0m
AP2 Applied Materials
22x10.7%€139.8b

Price-To-Earnings vs Peers: AP2 is expensive based on its Price-To-Earnings Ratio (22x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does AP2's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AP2 22.0xIndustry Avg. 15.1xNo. of Companies7PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AP2 is expensive based on its Price-To-Earnings Ratio (22x) compared to the European Semiconductor industry average (15.1x).

Price to Earnings Ratio vs Fair Ratio

What is AP2'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.

AP2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: AP2 is good value based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

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 AP2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€167.20
€198.43
+18.7%
10.7%€239.33€157.00n/a33
Feb ’26€178.50
€202.49
+13.4%
11.9%€240.08€157.49n/a34
Jan ’26€157.94
€204.41
+29.4%
12.3%€239.78€148.66n/a33
Dec ’25€167.28
€206.19
+23.3%
10.9%€236.88€146.86n/a31
Nov ’25€170.88
€212.21
+24.2%
10.3%€257.82€170.35n/a31
Oct ’25€177.02
€211.23
+19.3%
10.4%€251.92€166.44n/a31
Sep ’25€175.78
€214.77
+22.2%
9.8%€251.92€173.64n/a31
Aug ’25€184.84
€227.01
+22.8%
11.3%€277.05€155.15n/a31
Jul ’25€219.95
€219.98
+0.01%
11.2%€280.20€156.91n/a31
Jun ’25€194.90
€213.98
+9.8%
11.2%€240.50€152.63n/a31
May ’25€189.56
€205.88
+8.6%
13.0%€243.05€142.09n/a31
Apr ’25€189.80
€193.84
+2.1%
14.9%€228.60€126.19n/a31
Mar ’25€192.50
€194.10
+0.8%
15.0%€231.03€127.53n/a31
Feb ’25€152.40
€157.21
+3.2%
9.5%€198.21€127.22€178.5031
Jan ’25€147.78
€150.88
+2.1%
9.7%€169.46€109.92€157.9431
Dec ’24€139.38
€148.57
+6.6%
9.3%€169.92€110.22€167.2831
Nov ’24€126.84
€151.08
+19.1%
10.1%€175.23€113.66€170.8831
Oct ’24€131.70
€147.13
+11.7%
12.6%€173.23€103.00€177.0228
Sep ’24€142.54
€143.09
+0.4%
12.9%€165.96€101.42€175.7826
Aug ’24€138.32
€131.37
-5.0%
12.3%€159.15€100.03€184.8426
Jul ’24€132.08
€128.06
-3.0%
9.4%€146.59€100.78€219.9526
Jun ’24€124.68
€128.27
+2.9%
10.8%€149.71€93.57€194.9027
May ’24€101.32
€119.15
+17.6%
9.4%€136.13€81.68€189.5628
Apr ’24€112.74
€124.42
+10.4%
9.8%€140.69€84.41€189.8028
Mar ’24€109.88
€124.42
+13.2%
9.8%€140.69€84.41€192.5028
Feb ’24€105.28
€111.76
+6.2%
10.9%€128.84€80.99€152.4028
Analyst Price Target
Consensus Narrative from 33 Analysts
€201.49
Fair Value
17.0% undervalued intrinsic discount
33
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/19 20:35
End of Day Share Price 2025/02/19 00:00
Earnings2025/01/26
Annual Earnings2024/10/27

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 59 analysts. 32 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jagadish IyerArete Research Services LLP
James KelleherArgus Research Company
Ishan MajumdarBaptista Research