Applied Materials Stock Market Value
| AMAT Stock | USD 192.05 5.57 2.99% |
| Symbol | Applied |
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Applied Materials. If investors know Applied will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Applied Materials listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Applied Materials is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Materials' value that differs from its market value or its book value, called intrinsic value, which is Applied Materials' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Applied Materials' market value can be influenced by many factors that don't directly affect Applied Materials' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Applied Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Materials' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Applied Materials 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Applied Materials' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Applied Materials.
| 12/19/2024 |
| 01/18/2025 |
If you would invest 0.00 in Applied Materials on December 19, 2024 and sell it all today you would earn a total of 0.00 from holding Applied Materials or generate 0.0% return on investment in Applied Materials over 30 days. Applied Materials is related to or competes with KLA Tencor, ASML Holding, Axcelis Technologies, Teradyne, Lam Research, Aehr Test, and Photronics. Applied Materials, Inc. engages in the provision of manufacturing equipment, services, and software to the semiconductor... More
Applied Materials Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Applied Materials' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Applied Materials upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.38 | |||
| Information Ratio | 0.0284 | |||
| Maximum Drawdown | 12.71 | |||
| Value At Risk | (2.87) | |||
| Potential Upside | 3.78 |
Applied Materials Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Applied Materials' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Applied Materials' standard deviation. In reality, there are many statistical measures that can use Applied Materials historical prices to predict the future Applied Materials' volatility.| Risk Adjusted Performance | 0.0409 | |||
| Jensen Alpha | 0.067 | |||
| Total Risk Alpha | 0.031 | |||
| Sortino Ratio | 0.0276 | |||
| Treynor Ratio | 0.0904 |
Applied Materials Backtested Returns
Currently, Applied Materials is very steady. Applied Materials secures Sharpe Ratio (or Efficiency) of 0.0412, which signifies that the company had a 0.0412% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Applied Materials, which you can use to evaluate the volatility of the firm. Please confirm Applied Materials' Downside Deviation of 2.38, risk adjusted performance of 0.0409, and Mean Deviation of 1.67 to double-check if the risk estimate we provide is consistent with the expected return of 0.0956%. Applied Materials has a performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.95, which signifies possible diversification benefits within a given portfolio. Applied Materials returns are very sensitive to returns on the market. As the market goes up or down, Applied Materials is expected to follow. Applied Materials right now shows a risk of 2.32%. Please confirm Applied Materials semi variance, and the relationship between the treynor ratio and daily balance of power , to decide if Applied Materials will be following its price patterns.
Auto-correlation | 0.36 |
Below average predictability
Applied Materials has below average predictability. Overlapping area represents the amount of predictability between Applied Materials time series from 19th of December 2024 to 3rd of January 2025 and 3rd of January 2025 to 18th of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Applied Materials price movement. The serial correlation of 0.36 indicates that just about 36.0% of current Applied Materials price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.36 | |
| Spearman Rank Test | 0.47 | |
| Residual Average | 0.0 | |
| Price Variance | 44.2 |
Applied Materials lagged returns against current returns
Autocorrelation, which is Applied Materials stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Applied Materials' stock expected returns. We can calculate the autocorrelation of Applied Materials returns to help us make a trade decision. For example, suppose you find that Applied Materials has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Applied Materials regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Applied Materials stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Applied Materials stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Applied Materials stock over time.
Current vs Lagged Prices |
| Timeline |
Applied Materials Lagged Returns
When evaluating Applied Materials' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Applied Materials stock have on its future price. Applied Materials autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Applied Materials autocorrelation shows the relationship between Applied Materials stock current value and its past values and can show if there is a momentum factor associated with investing in Applied Materials.
Regressed Prices |
| Timeline |
Thematic Opportunities
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Additional Tools for Applied Stock Analysis
When running Applied Materials' price analysis, check to measure Applied Materials' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Applied Materials is operating at the current time. Most of Applied Materials' value examination focuses on studying past and present price action to predict the probability of Applied Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Materials' price. Additionally, you may evaluate how the addition of Applied Materials to your portfolios can decrease your overall portfolio volatility.