Applied Materials, Inc. (AMAT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-188.5%

-$343.02

vs $387.57 price

Levered DCF

$156.19

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

14.3

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	26.56×	21.35×	16.06×	11.79×	21.56×	14.99×	19.71×	10.37×
P/B	9.11×	8.07×	6.73×	6.31×	10.37×	5.13×	6.5×	4.61×
P/S	6.56×	5.64×	4.15×	2.98×	5.5×	3.15×	3.65×	1.89×
EV / EBITDA	18.63×	17.27×	13×	9.78×	17.29×	11.44×	14.37×	6.57×
Gross margin	48.7%	47.5%	46.7%	46.5%	47.3%	44.7%	43.7%	45.0%
Operating margin	29.2%	28.9%	28.9%	30.2%	29.9%	25.4%	22.9%	26.9%
Net margin	24.7%	26.4%	25.9%	25.3%	25.5%	21.0%	18.5%	18.2%
Current ratio	2.61×	2.51×	2.6×	2.16×	2.54×	3×	2.3×	2.7×
Debt / equity	0.35×	0.35×	0.37×	0.48×	0.47×	0.54×	0.65×	0.78×
Interest coverage	30.81×	31.85×	32.16×	34.16×	29.19×	18.19×	14.14×	19.19×
Dividend yield	0.7%	0.8%	0.9%	1.1%	0.7%	1.5%	1.4%	1.9%
Payout ratio	19.8%	16.6%	14.2%	13.4%	14.2%	21.7%	28.5%	19.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	34.3%	37.8%	41.9%	53.5%	48.1%	34.2%	32.9%	44.4%
Return on invested capital	22.0%	25.8%	28.8%	34.4%	30.6%	21.1%	18.3%	22.6%
Return on assets	19.3%	20.9%	22.3%	24.4%	22.8%	16.2%	14.2%	17.2%
Free cash flow yield	3.1%	4.9%	6.9%	6.0%	3.8%	6.2%	5.3%	10.0%
Earnings yield	3.8%	4.7%	6.2%	8.5%	4.6%	6.7%	5.1%	9.6%
Enterprise value	$185.8B	$151.9B	$109.9B	$80.7B	$127.7B	$54.6B	$55.5B	$33.4B
Net debt / EBITDA	-0.02×	-0.16×	-0.02×	0.46×	0.1×	0.07×	0.56×	0.37×
Cash conversion cycle (days)	167	170	186	203	173	173	178	161