Applied Materials Current Valuation vs. Total Debt
| 0R1A Stock | 176.50 4.93 2.87% |
For Applied Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Applied Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Applied Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Applied Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Applied Materials over time as well as its relative position and ranking within its peers.
Applied |
Applied Materials Total Debt vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Applied Materials's current stock value. Our valuation model uses many indicators to compare Applied Materials value to that of its competitors to determine the firm's financial worth. Applied Materials is the top company in current valuation category among its peers. It is rated second in total debt category among its peers making up about 0.04 of Total Debt per Current Valuation. The ratio of Current Valuation to Total Debt for Applied Materials is roughly 25.99 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Applied Materials' earnings, one of the primary drivers of an investment's value.Applied Current Valuation vs. Competition
Applied Materials is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is presently estimated at about 276 Billion. Applied Materials totals roughly 151.06 Billion in current valuation claiming about 55% of equities under Industrials industry.
Applied Total Debt vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Applied Materials |
| = | 151.06 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Applied Materials |
| = | 5.81 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Applied Total Debt vs Competition
Applied Materials is rated second in total debt category among its peers. Total debt of Industrials industry is presently estimated at about 16.19 Billion. Applied Materials totals roughly 5.81 Billion in total debt claiming about 36% of equities under Industrials industry.
Applied Materials Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Applied Materials, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Applied Materials will eventually generate negative long term returns. The profitability progress is the general direction of Applied Materials' change in net profit over the period of time. It can combine multiple indicators of Applied Materials, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -260 M | -273 M | |
| Operating Income | 7.2 B | 4.5 B | |
| Income Before Tax | 6.8 B | 4.3 B | |
| Total Other Income Expense Net | -429 M | -407.6 M | |
| Net Income | 7.9 B | 4.2 B | |
| Income Tax Expense | 883 M | 656.5 M | |
| Interest Income | 135.7 M | 134.9 M | |
| Net Income Applicable To Common Shares | 6.8 B | 4.6 B | |
| Change To Netincome | 579.6 M | 366.3 M |
Applied Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Applied Materials. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Applied Materials position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Applied Materials' important profitability drivers and their relationship over time.
Use Applied Materials in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Applied Materials position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Applied Materials will appreciate offsetting losses from the drop in the long position's value.Applied Materials Pair Trading
Applied Materials Pair Trading Analysis
The ability to find closely correlated positions to Applied Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Applied Materials when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Applied Materials - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Applied Materials to buy it.
The correlation of Applied Materials is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Applied Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Applied Materials moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Applied Materials can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Applied Materials position
In addition to having Applied Materials in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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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.