Applied Materials, Inc.

NasdaqGS:AMAT Stock Report

Market Cap: US$139.6b

Applied Materials Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • 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 ($170.49) is trading below our estimate of fair value ($221.82)

Significantly Below Fair Value: AMAT is trading below fair value by more than 20%.

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 Ratio19.6x
EarningsUS$7.18b
Market CapUS$139.58b

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 Average25.9x
NXPI NXP Semiconductors
20.6x9.7%US$55.9b
TER Teradyne
32.9x21.7%US$16.7b
KLAC KLA
27.8x13.6%US$82.4b
LRCX Lam Research
22.2x12.3%US$90.3b
AMAT Applied Materials
19.6x7.8%US$139.6b

Price-To-Earnings vs Peers: AMAT is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (25.9x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.5xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
AMAT 19.6xIndustry Avg. 30.3xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMAT is good value based on its Price-To-Earnings Ratio (19.6x) compared to the US Semiconductor industry average (30.3x).

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 Ratio19.6x
Fair PE Ratio29.8x

Price-To-Earnings vs Fair Ratio: AMAT is good value based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.7x).

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
CurrentUS$170.49
US$219.26
+28.6%
10.8%US$250.00US$155.00n/a31
Nov ’25US$183.38
US$230.46
+25.7%
10.3%US$280.00US$185.00n/a31
Oct ’25US$197.20
US$234.78
+19.1%
10.4%US$280.00US$185.00n/a31
Sep ’25US$197.26
US$238.72
+21.0%
9.8%US$280.00US$193.00n/a31
Aug ’25US$196.30
US$245.82
+25.2%
11.3%US$300.00US$168.00n/a31
Jul ’25US$237.41
US$235.53
-0.8%
11.2%US$300.00US$168.00n/a31
Jun ’25US$215.08
US$231.33
+7.6%
11.2%US$260.00US$165.00n/a31
May ’25US$193.99
US$220.24
+13.5%
13.0%US$260.00US$152.00n/a31
Apr ’25US$208.69
US$211.98
+1.6%
14.9%US$250.00US$138.00n/a31
Mar ’25US$210.25
US$210.05
-0.1%
15.0%US$250.00US$138.00n/a31
Feb ’25US$166.97
US$170.53
+2.1%
9.5%US$215.00US$138.00n/a31
Jan ’25US$162.07
US$164.72
+1.6%
9.7%US$185.00US$120.00n/a31
Dec ’24US$151.59
US$161.75
+6.7%
9.3%US$185.00US$120.00n/a31
Nov ’24US$135.29
US$159.51
+17.9%
10.1%US$185.00US$120.00US$183.3831
Oct ’24US$138.45
US$157.12
+13.5%
12.6%US$185.00US$110.00US$197.2028
Sep ’24US$153.99
US$155.19
+0.8%
12.9%US$180.00US$110.00US$197.2626
Aug ’24US$152.63
US$144.46
-5.4%
12.3%US$175.00US$110.00US$196.3026
Jul ’24US$144.54
US$139.77
-3.3%
9.4%US$160.00US$110.00US$237.4126
Jun ’24US$134.83
US$137.09
+1.7%
10.8%US$160.00US$100.00US$215.0827
May ’24US$112.95
US$131.30
+16.2%
9.4%US$150.00US$90.00US$193.9928
Apr ’24US$122.83
US$132.66
+8.0%
9.8%US$150.00US$90.00US$208.6928
Mar ’24US$117.26
US$132.66
+13.1%
9.8%US$150.00US$90.00US$210.2528
Feb ’24US$119.01
US$121.44
+2.0%
10.9%US$140.00US$88.00US$166.9728
Jan ’24US$97.38
US$119.05
+22.3%
12.4%US$140.00US$80.00US$162.0728
Dec ’23US$107.01
US$117.79
+10.1%
12.3%US$140.00US$80.00US$151.5927
Nov ’23US$89.79
US$105.96
+18.0%
17.4%US$150.00US$70.00US$135.2926

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

Discover undervalued companies

NXP Semiconductors

US$55.9b

Offers various semiconductor products.

NXPI

US$220.34

7D

-1.2%

1Y

10.4%

Peraso

US$2.3m

A fabless semiconductor company, develops, markets, and sells semiconductor devices and antenna modules in the United States, Hong Kong, Taiwan, and internationally.

PRSO

US$0.85

7D

-0.7%

1Y

-89.2%

First Solar

US$20.1b

A solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally.

FSLR

US$184.84

7D

1.5%

1Y

15.7%