Applied Materials Inc (AMAT) Valuation
Historical valuation analysis based on 1281 data points (2021-09-10 to 2026-10-16)
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials h...
Applied Materials Inc (AMAT) currently trades at a P/E ratio of 35.05 (historical range: 9.89–67.90, median: 20.59), placing it at the 87th percentile — expensive relative to its history, P/S ratio of 10.53 (range: 2.61–19.90, 89th percentile — expensive relative to its history), EV/EBITDA of 35.32 (range: 8.66–69.39, 88th percentile).
Over the historical period (2021-09-10 to 2026-10-16), Applied Materials Inc's P/E ratio has expanded by 60% over the observed period (from an average of 17.9 to 28.6).
Applied Materials Inc trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 35.05 | 20.59 | 87th | expensive relative to its history |
| P/S Ratio | 10.53 | 5.30 | 89th | expensive relative to its history |
| EV/EBITDA | 35.32 | 17.81 | 88th | expensive relative to its history |
| FCF Yield | 1.73% | 4.31% | 9th | expensive relative to its history |
Applied Materials Inc (AMAT) Valuation & P/E History
Applied Materials Inc (AMAT) is a US-listed stock operating in the Technology sector, specifically the Semiconductors & Related Devices industry currently trading at $409.00 with a market capitalization of $324.6 billion. This page provides historical valuation analysis for AMAT based on 1281 data points covering 2021-09-10 to 2026-10-16. The P/E ratio of 35.05 is above the historical median of 20.59, placing AMAT at the 87th percentile of its valuation range. The P/S ratio of 10.53 compares to a median of 5.30.
AMAT Valuation Metrics & Historical Range
The valuation table above shows Applied Materials Inc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether AMAT is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests AMAT is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Applied Materials Inc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is AMAT Overvalued or Undervalued?
Applied Materials Inc trades well above its own historical valuation range across most metrics. The overall valuation percentile of 88 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive AMAT is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full AMAT analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.AMAT trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.