Applied Materials Valuation
| AMAT Stock | MXN 3,572 40.41 1.12% |
At this time, the firm appears to be overvalued. Applied Materials shows a prevailing Real Value of 2709.64 per share. The current price of the firm is 3572.44. Our model approximates the value of Applied Materials from analyzing the firm fundamentals such as Current Valuation of 1.93 T, profit margin of 0.25 %, and Return On Equity of 0.53 as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Applied Materials' price fluctuation is very steady at this time. Calculation of the real value of Applied Materials is based on 3 months time horizon. Increasing Applied Materials' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Applied Materials is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Applied Stock. However, Applied Materials' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 3572.44 | Real 2709.64 | Hype 3612.85 | Naive 3328.38 |
The intrinsic value of Applied Materials' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Applied Materials' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Applied Materials helps investors to forecast how Applied stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Applied Materials more accurately as focusing exclusively on Applied Materials' fundamentals will not take into account other important factors: Applied Materials Total Value Analysis
Applied Materials is presently anticipated to have takeover price of 1.93 T with market capitalization of 1.82 T, debt of 5.46 B, and cash on hands of 3.62 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Applied Materials fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.93 T | 1.82 T | 5.46 B | 3.62 B |
Applied Materials Investor Information
About 83.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings (P/E) ratio of 266.87. Applied Materials recorded earning per share (EPS) of 139.79. The entity last dividend was issued on the 22nd of February 2023. Based on the key indicators related to Applied Materials' liquidity, profitability, solvency, and operating efficiency, Applied Materials is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Applied Materials Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Applied Materials has an asset utilization ratio of 96.48 percent. This suggests that the Company is making 0.96 for each dollar of assets. An increasing asset utilization means that Applied Materials is more efficient with each dollar of assets it utilizes for everyday operations.Applied Materials Ownership Allocation
Applied Materials holds a total of 843.08 Million outstanding shares. The majority of Applied Materials outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Applied Materials to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Applied Materials. Please pay attention to any change in the institutional holdings of Applied Materials as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Applied Materials Profitability Analysis
The company reported the revenue of 25.79 B. Net Income was 6.53 B with profit before overhead, payroll, taxes, and interest of 11.99 B.About Applied Materials Valuation
Our relative valuation model uses a comparative analysis of Applied Materials. We calculate exposure to Applied Materials's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Applied Materials's related companies.Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California. APPLIED MATERIALS operates under Semiconductor Equipment Materials classification in Mexico and is traded on Mexico Stock Exchange. It employs 21400 people.
8 Steps to conduct Applied Materials' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Applied Materials' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Applied Materials' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Applied Materials' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Applied Materials' revenue streams: Identify Applied Materials' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Applied Materials' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Applied Materials' growth potential: Evaluate Applied Materials' management, business model, and growth potential.
- Determine Applied Materials' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Applied Materials' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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.