Applied Materials Inc
NASDAQ: AMAT · TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS
Updated 2026-09-11
Applied Materials Inc (AMAT) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for AMAT.
Valued
Fundamentals support the current valuation. Strong combination of growth, quality, and price.
AMAT historical valuation range
Where current P/E sits in AMAT's own 5Y range.
AMAT intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Standard discounted cash flow models produce unreliable output for unprofitable or near-breakeven companies. Revenue-based multiples such as P/S and EV/Sales, combined with the historical valuation position above, give a more reliable read for this stock.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
AMAT valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 39.42x
P/S Ratio — History
Current: 11.75x
Is AMAT overvalued in 2026?
Applied Materials Inc (AMAT) currently trades at $456.49 per share with a market capitalization of $362,269,278,000.00. Based on our multi-factor framework, the stock looks attractively valued with a Smart Value Score of 78/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 39.4x, above its 5-year median of 35.9x. The PEG ratio of 0.90 suggests earnings growth is outpacing the multiple, a classic sign of undervaluation.
Looking at its own history, AMAT is currently trading more expensive than 62% of the last 5Y on P/E. This places it in the 62th percentile of its historical range, a reasonable but unremarkable position.
A standard DCF model does not produce reliable output for AMAT under current conditions. For unprofitable or near-breakeven companies, revenue-based multiples such as EV/Sales and historical P/S percentile are more informative than intrinsic value calculations.
The Piotroski F-Score of 4/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.
Bottom line: AMAT looks attractively valued on our framework, with a Smart Value Score of 78/100. The combination of reasonable price, healthy growth, and quality fundamentals makes it worth serious consideration.
Frequently asked questions
Is AMAT overvalued?
AMAT scores 78/100 on our Smart Value Score (Grade B+), a strong overall profile. A standard DCF is unreliable here given the profitability profile, so valuation leans on revenue-based measures like EV/Sales and the P/S percentile below.
What is AMAT's fair value?
A standard DCF is unreliable for AMAT given its current profitability profile. Revenue-based approaches like EV/Sales or the historical P/S percentile are more informative for this stock.
What P/E ratio does AMAT trade at?
AMAT trades at a P/E of 39.4x on trailing twelve-month earnings, against a 5-year median of 35.9x. P/E is what you pay per dollar of profit, and sitting above its own median means the stock is pricier than usual relative to its earnings.
Is AMAT a buy based on valuation?
Our Smart Value rating for AMAT is Buy, from a Smart Value Score of 78/100 that blends growth, quality, and valuation. The rating leans on growth and financial strength, and valuation is usually the weakest leg for a name scoring this high. This is research to inform your decision, not personalized financial advice.
How does AMAT's valuation compare to its history?
On P/E, AMAT sits in the 62nd percentile of its own 5Y range, above its long-run median relative to where it has traded. A high percentile means today's multiple is near the top of its historical band.
What is AMAT's Smart Value Score?
AMAT's Smart Value Score is 78/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.