Applied Materials Valuation
| AMAT Stock | USD 174.88 0.87 0.50% |
At this time, the firm appears to be overvalued. Applied Materials shows a prevailing Real Value of $140.11 per share. The current price of the firm is $174.88. Our model approximates the value of Applied Materials from analyzing the firm fundamentals such as Return On Equity of 0.44, current valuation of 140.96 B, and Profit Margin of 0.28 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Applied Materials' valuation include:
Price Book 7.5876 | Enterprise Value 141 B | Enterprise Value Ebitda 16.0346 | Price Sales 5.3687 | Forward PE 18.018 |
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.
Applied Materials' intrinsic value may or may not be the same as its current market price of 174.88, 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 174.88 | Real 140.11 | Target 149.06 | Hype 175.0 | Naive 159.47 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Applied Materials' intrinsic value based on its ongoing forecasts of Applied Materials' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Applied Materials' closest peers.
Applied Materials Cash |
|
Applied Valuation Trend
Applied Materials' real value is important for investors to make better decisions and a more accurate overall view of Applied Materials' financial worth over time. Using both Applied Materials' enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Applied Revenue by Product
Applied Materials Total Value Analysis
Applied Materials is presently forecasted to have valuation of 140.96 B with market capitalization of 144.17 B, debt of 6 B, and cash on hands of 2.58 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Applied Materials fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
140.96 B | 144.17 B | 6 B | 2.58 B |
Applied Materials Investor Information
About 84.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.73. Applied Materials recorded earning per share (EPS) of 8.6. The entity last dividend was issued on the 21st of November 2024. The firm had 2:1 split on the 17th of April 2002. Based on the key indicators related to Applied Materials' liquidity, profitability, solvency, and operating efficiency, Applied Materials is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.3 | 0.2895 |
|
| |||||
| Total Cash From Operating Activities | 10.5 B | 10 B |
|
| |||||
| Operating Income | 8.3 B | 7.9 B |
|
|
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 88.44 percent. This implies that the Company is making $0.88 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 824.4 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. On October 9, 2024, Representative Marjorie Taylor Greene of US Congress acquired under $15k worth of Applied Materials's common stock.Applied Materials Profitability Analysis
The company reported the previous year's revenue of 27.18 B. Net Income was 6.86 B with profit before overhead, payroll, taxes, and interest of 11.99 B.Applied Materials Past Distributions to stockholders
About Applied Materials Valuation
The stock valuation mechanism determines Applied Materials' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Applied Materials based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, 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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 12.9 B | 13.5 B | |
| Pretax Profit Margin | 0.30 | 0.29 | |
| Operating Profit Margin | 0.29 | 0.30 | |
| Net Profit Margin | 0.26 | 0.26 | |
| Gross Profit Margin | 0.47 | 0.47 |
Applied Materials Quarterly Retained Earnings |
|
A single share of Applied Materials represents a small ownership stake in the entity. As a stockholder of Applied, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Applied Materials Dividends Analysis For Valuation
Dividends Paid is likely to gain to about 1.2 B in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024. . At this time, Applied Materials' Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 45.8 B in 2024, whereas Earnings Yield is likely to drop 0.05 in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.1 B | 1.2 B | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Paid And Capex Coverage Ratio | 3.61 | 2.14 | |
| Dividend Payout Ratio | 0.14 | 0.14 |
There are various types of dividends Applied Materials can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Applied shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Applied Materials directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Applied pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Applied Materials by the value of the dividends paid out.
Applied Materials Growth Indicators
Investing in growth stocks can be very risky. If the company such as Applied Materials does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 834 M | |
| Quarterly Earnings Growth Y O Y | 0.108 | |
| Forward Price Earnings | 18.018 | |
| Forward Annual Dividend Rate | 1.6 | |
| Shares Float | 821.5 M |
Applied Materials Current Valuation Indicators
Applied Materials' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Applied Materials' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Applied Materials, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Applied Materials' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Applied Materials' worth.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.