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TechnologyUpdatedΒ·Data: Yahoo Finance, SEC EDGARΒ·Data delayed ~5 min
AM

Insight AMAT High Conviction Pick Investment Thesis result

NMS Β· Technology Β· Semiconductor Equipment & Materials

$421.17

-3.04 (-0.72%)

OverviewTechnicalRiskWhaleEarningsOptionsShort InterestESG

AMAT Interactive Price Chart & Trading Signals

AMAT Stock Snapshot β€” Valuation, Risk & Technical Signals

AMAT Key Fundamentals, Analyst Targets & Company Profile

Key Financial Ratios

Market Cap

$334.24B

P/E Ratio

36.37

Forward P/E

22.82

PEG Ratio

0.91

P/B Ratio

13.04

EPS

$11.58

Dividend Yield

0.50%

52W Range

$171.58 – $739.67

Beta

1.60

Volume

5.6M

ROE

41.1%

Profit Margin

30.1%

Revenue Growth

24.8%

Gross Margin

49.4%

EV/EBITDA

32.97

Analyst Target

$640.89

The trailing price-to-earnings ratio stands at 36.4x. Forward P/E of 22.8x implies earnings expansion expected. Price-to-book is 13.04x. EV/EBITDA sits at 32.97x. Market capitalization is $334.24B. Revenue is growing at 24.8% on a trailing basis. Earnings are expanding at 42.8%. Profit margins are 30.1%. Return on equity is 41.1%. Beta of 1.60 indicates elevated market sensitivity.

Analyst Consensus

Recommendation

Strong Buy

Low Target

$358.00

Mean Target

$640.89

High Target

$900.00

Based on 35 analysts

About AMAT

Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.

United States38,900 employeesWebsite β†—

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AMAT Deep Dive Analysis

Bottom Line

Verdict

Overvalued

Best for

Growth-oriented investors

Watch out for

Premium valuation, High volatility

Data confidence

High

Applied Materials, Inc. (AMAT) trades above our multi-model fair value estimate of $157.56 by approximately 62.6%. Trailing P/E: 36.4x. Profitability signals include profit margin of 30.1% and return on equity of 41.1%. Recent growth metrics show revenue growth of 24.8% and earnings growth of 42.8%. Risk profile: elevated market beta of 1.60. Consensus: strong_buy.

AMAT Deep Dive Analysis

Valuation

Overvalued

P/E 36.4x

Price is above what fundamentals suggest.

Growth

Expanding

Rev 24.8%

Revenue is outpacing the market.

Risk

Elevated

Beta 1.60

Expect bigger swings than the market.

Valuation Snapshot

Applied Materials, Inc. (AMAT) trades above our multi-model fair value estimate of $157.56 by approximately 62.6%. The trailing price-to-earnings ratio stands at 36.4x. Forward P/E of 22.8x suggests earnings compression ahead. Price-to-sales is 10.8x. Price-to-book is 13.0x. EV/EBITDA sits at 33.0x. Market capitalization is $334.24B.

Why it matters: Paying a premium works only if the company keeps growing faster than expected.

Growth & Profitability

Revenue is growing at 24.8% on a trailing basis. Earnings are expanding at 42.8%. Profit margins are 30.1%. Return on equity is 41.1%. Return on assets is 15.5%.

Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.

Risk Profile

Beta of 1.60 indicates elevated market sensitivity. Net debt position is $-1887000576.00.

Why it matters: A riskier stock can fall more in a downturn. Make sure your portfolio can handle the volatility.

Analyst Context

Analyst consensus target of $640.89 implies 52.2% upside. Target range spans $358.00 to $900.00. 35 analysts cover the stock. Consensus recommendation: strong_buy.

Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.

Investor Fit

Premium valuation is supported by above-average growth, potentially fitting growth-oriented strategies.

Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.

Data Methodology & Sources

Market Data (Facts)

  • Price, volume, market cap: Yahoo Finance (delayed ~5 min)
  • P/E, EPS, revenue, debt: Yahoo Finance fundamentals
  • Analyst targets: Yahoo Finance consensus (may lag)
  • Insider trades: SEC EDGAR Form 4 filings

QuantSoar Model (Derived)

  • Fair Value: 7-model consensus (DCF, Graham, P/E, P/S, DDM, EV/EBITDA, Div Yield) β€” trimmed inverse-variance weighted
  • Margin of Safety = (Fair Value βˆ’ Live Price) / Live Price Γ— 100
  • Composite Score: 40% Value + 30% Momentum + 30% Risk
  • Verdict Gauge: Base 50 + Valuation(Β±25) + Whale(Β±10) + Macro(Β±10) + Technical(Β±10). Analyst consensus shown separately.

Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.

AMAT Overvalued

Applied Materials, Inc. (AMAT) trades above our multi-model fair value estimate of $157.56 by approximately 62.6%.

Frequently Asked Questions

ValuationIs AMAT stock overvalued right now?
Based on our discounted cash flow and relative valuation models, AMAT appears to trade above fair value by approximately 62.6%. This suggests the market may be pricing in elevated growth expectations or sentiment premiums.
ValuationWhat is AMAT fair value based on current fundamentals?
Our fair value estimate for AMAT is $157.56, derived from discounted cash flow, dividend discount, and relative valuation multiples. The estimate assumes a discount rate of 9.0% and terminal growth of 2.5%.
RiskHow risky is AMAT compared with other stocks?
AMAT carries a beta of 1.60 indicates above-average market sensitivity. Investors should weigh macro exposure against their own risk tolerance.
GrowthIs AMAT still growing?
Latest trailing metrics show revenue growth of 24.8% and earnings growth of 42.8%. Profit margins are 30.1%.
AnalystWhat do analysts think about AMAT?
Analyst consensus target is $640.89, implying 52.2% upside. The street recommendation is "strong_buy".
DividendDoes AMAT pay a dividend?
Yes. AMAT currently offers a dividend yield of 0.5%.
CatalystWhat could change the investment case for AMAT?
Key catalysts include Technology sector dynamics, interest rate shifts, and company-specific earnings surprises. Monitor macro risk scores and analyst estimate revisions for early signals.

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Phasakorn Traklang (Peach)

About the Author

Phasakorn Traklang (Peach) β€” Founder

Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.

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Investment Disclaimer: QuantSoar is for informational purposes only. We do not provide personalized investment advice. Always conduct your own research or consult a financial advisor. SEC

Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.