Information Technology · Semiconductor Materials & Equipment · US stock · price as of 16 Oct 2026
Key indicators
Price
$409.29
52-week range
$202.28 – $738.88
Market cap
$327.4B
P/E (trailing)
35.4×
EV / EBITDA
33.7×
Free-cash-flow yield
1.7%
Dividend yield
0.5%
Revenue (last 12 months)
$30.8B
Revenue growth (3y a year)
3.2%
Operating margin
29.6%
Return on invested capital
32.7%
Net debt / EBITDA
-0.2×
Fair value
Blended fair value$261.38 range $253 – $270
Versus priceOvervalued−36% to fair value
Peer multiples
$307.69
Fundamentals-adjusted multiple
$248.37
10-year DCF (market-scaled)
$228.07
Earnings power value (floor, not blended)
$86.73
Model uncertainty
Medium
X-Ray Score
52/ 100 · High confidence · ahead of 52% of sector peers
Valuation37
Growth30
Profitability63
Financial health73
Dividends59
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Applied Materials supplies the machines, materials and services that chipmakers and display manufacturers use to produce their products. Its tools handle steps such as depositing thin films, etching patterns and inspecting wafers. The company earns money by selling equipment to semiconductor fabrication plants and then providing ongoing services, spare parts and upgrades to the installed base, so its sales follow the spending cycles of the chip industry.
Revenue over the last twelve months came to $30.8 billion, and sales grew by 3.2% a year on average across the past three years. Operating margin is 29.6% and return on invested capital is 33%. Net debt to EBITDA is -0.2 times, which means it holds more cash than debt. It pays a dividend with a yield of 0.5%. These figures describe past results and the present financial position only.
StocksXray gives Applied Materials Inc an X-Ray Score of 52 out of 100 (high confidence), ahead of 52% of the S&P 500 stocks in its sector. Its strongest lens is financial health (73) and its weakest is growth (30).
Our fair value blend is $261.38 (range $253.15 to $270.26). At $409.29 the stock trades 57% above that blend, so the label is "Overvalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Applied Materials Inc (AMAT)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$131.11
$86.81
$128.26
$183.58
$227.49
$409.29
Market cap
$120.5B
$76.1B
$108.4B
$153.1B
$183.8B
$327.4B
P/E
20.5×
11.7×
15.8×
21.3×
26.3×
35.4×
EV / revenue
5.2×
3.1×
4.0×
5.5×
6.4×
10.6×
EV / EBITDA
16.5×
9.6×
13.1×
18.2×
20.8×
33.7×
Price / free cash flow
25.2×
16.5×
14.3×
20.4×
32.3×
58.2×
Free-cash-flow yield
4.0%
6.1%
7.0%
4.9%
3.1%
1.7%
Price / book
9.8×
6.2×
6.6×
8.1×
9.0×
12.8×
Dividend yield
0.72%
1.17%
0.95%
0.83%
0.78%
0.48%
Fundamentals checklist ● 6 Good · ● 6 Average · ● 4 Bad · each check graded against the sector
Cash quality
Earnings backed by cash2.0%Bad
Free-cash-flow yield1.7%Bad
Risk models
Altman Z score9.7×Good
Piotroski F-Score7 of 9Good
Growth
EPS growth (3y)5.2%Average
Free-cash-flow growth (3y)7.3%Average
Revenue growth (3y)3.2%Bad
Growth consistency80%Bad
Balance sheet
Current ratio2.4×Good
Net debt / EBITDA-0.2×Good
Interest cover33.0×Average
Valuation
Fair value vs price0.6×Average
EBIT / EV yield2.8%Average
Profitability
Return on invested capital32.7%Good
Operating margin29.6%Good
Gross profitability35.0%Average
XStocksXray
Applied Materials Inc (AMAT)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
23,063
25,785
26,517
27,176
28,368
30,837
Gross profit
10,914
11,993
12,384
12,897
13,808
15,233
Operating income
6,889
7,788
7,654
7,867
8,289
9,141
Net income
5,888
6,525
6,856
7,177
6,998
9,267
Diluted EPS ($)
6.40
7.44
8.11
8.61
8.66
11.56
Free cash flow
4,774
4,612
7,594
7,487
5,698
5,623
Gross margin
47.3%
46.5%
46.7%
47.5%
48.7%
49.4%
Operating margin
29.9%
30.2%
28.9%
28.9%
29.2%
29.6%
Net margin
25.5%
25.3%
25.9%
26.4%
24.7%
30.1%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
25,825
26,726
30,729
34,409
36,299
43,522
Cash
4,995
1,995
6,132
8,022
7,241
7,037
Total debt
5,452
5,457
5,561
6,959
6,555
7,743
Equity
12,247
12,194
16,349
19,001
20,415
25,626
Dividend per share ($)
0.94
1.02
1.22
1.52
1.78
1.98
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.