Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

Applied Materials Inc., current price multiples

Microsoft Excel
Applied Materials Inc. Advanced Micro Devices Inc. Analog Devices Inc. Broadcom Inc. Intel Corp. KLA Corp. Lam Research Corp. Micron Technology Inc. Monolithic Power Systems Inc. NVIDIA Corp. Qualcomm Inc. Texas Instruments Inc. Semiconductors & Semiconductor Equipment Information Technology
Selected Financial Data
Current share price (P) $145.06
No. shares of common stock outstanding 812,440,849
Growth rate (g) 33.77%
 
Earnings per share (EPS) $8.83
Next year expected EPS $11.82
Operating profit per share $9.68
Sales per share $33.45
Book value per share (BVPS) $23.39
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 16.42 101.93 61.13 134.89 32.41 24.35 127.04 15.54 36.72 16.65 33.45 89.28 44.79
Price to next year expected earnings 12.28 91.43 59.82 142.16 21.45 17.24 115.26 13.14 26.30 11.99 28.71 80.24 35.76
Price-earnings-growth (PEG) 0.49 8.88 27.96 0.63 0.59 12.43 0.85 0.93 0.43 2.03 7.92 1.77
Price to operating profit (P/OP) 14.98 88.03 49.18 59.07 26.75 21.86 75.80 51.46 32.85 16.77 29.37 64.20 34.89
Price to sales (P/S) 4.34 6.49 10.60 15.42 1.85 9.12 6.25 3.94 12.58 20.51 4.34 10.26 13.73 9.28
Price to book value (P/BV) 6.20 2.91 2.84 11.75 0.99 26.57 10.91 2.19 8.82 33.73 6.43 9.50 10.81 13.16

Based on: 10-K (reporting date: 2024-10-27).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Applied Materials Inc., historical price multiples

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
Price to earnings (P/E) 19.20 19.63 13.55 22.05 22.31 20.25
Price to operating profit (P/OP) 17.52 17.58 11.35 18.85 18.50 16.36
Price to sales (P/S) 5.07 5.08 3.43 5.63 4.69 3.75
Price to book value (P/BV) 7.25 8.23 7.25 10.60 7.63 6.67

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Applied Materials Inc. P/E ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Applied Materials Inc. P/OP ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Applied Materials Inc. P/S ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Applied Materials Inc. P/BV ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Price to Earnings (P/E)

Applied Materials Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
No. shares of common stock outstanding1 813,684,638 831,067,105 844,139,722 888,513,248 914,344,189 915,304,098
Selected Financial Data (US$)
Net income (in millions) 7,177 6,856 6,525 5,888 3,619 2,706
Earnings per share (EPS)2 8.82 8.25 7.73 6.63 3.96 2.96
Share price1, 3 169.35 161.95 104.73 146.15 88.30 59.87
Valuation Ratio
P/E ratio4 19.20 19.63 13.55 22.05 22.31 20.25
Benchmarks
P/E Ratio, Competitors5
Advanced Micro Devices Inc. 110.61 317.27 96.16 45.54 41.66
Analog Devices Inc. 66.48 27.14 31.21 68.31 41.43 31.04
Broadcom Inc. 175.56 36.78 20.70 40.73 66.38 47.09
Intel Corp. 109.27 14.54 9.85 11.02
KLA Corp. 34.24 20.04 16.89 25.97 25.92 18.44
Lam Research Corp. 27.05 19.26 13.77 21.03 24.23 13.64
Micron Technology Inc. 145.72 6.62 13.38 21.80 7.98
Monolithic Power Systems Inc. 15.51 81.98 52.21 88.67 107.98
NVIDIA Corp. 56.68 131.70 68.08 78.54 67.59
Qualcomm Inc. 18.95 17.07 9.75 17.15 28.06 22.03
Texas Instruments Inc. 34.72 22.24 18.88 20.38 27.95
P/E Ratio, Sector
Semiconductors & Semiconductor Equipment 76.42 48.70 23.05 24.53 25.50
P/E Ratio, Industry
Information Technology 44.83 35.97 26.85 29.54 31.13

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 7,177,000,000 ÷ 813,684,638 = 8.82

3 Closing price as at the filing date of Applied Materials Inc. Annual Report.

4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 169.35 ÷ 8.82 = 19.20

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Applied Materials Inc. P/E ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Price to Operating Profit (P/OP)

Applied Materials Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
No. shares of common stock outstanding1 813,684,638 831,067,105 844,139,722 888,513,248 914,344,189 915,304,098
Selected Financial Data (US$)
Income from operations (in millions) 7,867 7,654 7,788 6,889 4,365 3,350
Operating profit per share2 9.67 9.21 9.23 7.75 4.77 3.66
Share price1, 3 169.35 161.95 104.73 146.15 88.30 59.87
Valuation Ratio
P/OP ratio4 17.52 17.58 11.35 18.85 18.50 16.36
Benchmarks
P/OP Ratio, Competitors5
Advanced Micro Devices Inc. 95.53 675.69 100.42 39.48 75.77
Analog Devices Inc. 53.48 23.53 26.16 56.12 33.76 24.74
Broadcom Inc. 76.87 31.96 16.33 30.78 44.04 36.85
Intel Corp. 1,984.43 49.91 10.06 9.72
KLA Corp. 28.26 16.99 15.36 21.69 20.99 15.60
Lam Research Corp. 24.29 16.79 11.79 18.34 20.40 12.13
Micron Technology Inc. 86.94 5.93 12.48 19.51 6.83
Monolithic Power Systems Inc. 51.38 72.73 43.38 81.78 111.71
NVIDIA Corp. 51.16 136.19 66.12 75.08 66.40
Qualcomm Inc. 19.08 15.85 7.95 15.84 23.32 12.60
Texas Instruments Inc. 30.49 19.75 16.29 17.67 26.53
P/OP Ratio, Sector
Semiconductors & Semiconductor Equipment 54.96 44.88 21.44 22.29 22.63
P/OP Ratio, Industry
Information Technology 34.92 29.96 22.79 26.09 26.95

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 7,867,000,000 ÷ 813,684,638 = 9.67

3 Closing price as at the filing date of Applied Materials Inc. Annual Report.

4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 169.35 ÷ 9.67 = 17.52

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Applied Materials Inc. P/OP ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Price to Sales (P/S)

Applied Materials Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
No. shares of common stock outstanding1 813,684,638 831,067,105 844,139,722 888,513,248 914,344,189 915,304,098
Selected Financial Data (US$)
Net revenue (in millions) 27,176 26,517 25,785 23,063 17,202 14,608
Sales per share2 33.40 31.91 30.55 25.96 18.81 15.96
Share price1, 3 169.35 161.95 104.73 146.15 88.30 59.87
Valuation Ratio
P/S ratio4 5.07 5.08 3.43 5.63 4.69 3.75
Benchmarks
P/S Ratio, Competitors5
Advanced Micro Devices Inc. 7.04 11.95 5.38 8.76 10.63
Analog Devices Inc. 11.53 7.31 7.14 12.98 9.03 7.06
Broadcom Inc. 20.07 14.46 7.00 9.55 7.40 5.62
Intel Corp. 1.58 3.40 1.85 2.48 2.96
KLA Corp. 9.64 6.47 6.09 7.80 5.43 4.74
Lam Research Corp. 6.95 4.99 3.68 5.62 5.43 3.10
Micron Technology Inc. 4.51 4.94 1.87 2.83 2.73 2.15
Monolithic Power Systems Inc. 12.56 19.24 12.74 17.77 21.02
NVIDIA Corp. 27.69 21.33 24.67 20.41 17.31
Qualcomm Inc. 4.93 3.45 2.85 4.62 6.20 3.98
Texas Instruments Inc. 10.65 8.26 8.25 8.63 10.81
P/S Ratio, Sector
Semiconductors & Semiconductor Equipment 11.75 8.33 5.86 6.30 5.85
P/S Ratio, Industry
Information Technology 9.29 7.33 6.02 6.97 6.11

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 27,176,000,000 ÷ 813,684,638 = 33.40

3 Closing price as at the filing date of Applied Materials Inc. Annual Report.

4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 169.35 ÷ 33.40 = 5.07

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Applied Materials Inc. P/S ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Price to Book Value (P/BV)

Applied Materials Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
No. shares of common stock outstanding1 813,684,638 831,067,105 844,139,722 888,513,248 914,344,189 915,304,098
Selected Financial Data (US$)
Stockholders’ equity (in millions) 19,001 16,349 12,194 12,247 10,578 8,214
Book value per share (BVPS)2 23.35 19.67 14.45 13.78 11.57 8.97
Share price1, 3 169.35 161.95 104.73 146.15 88.30 59.87
Valuation Ratio
P/BV ratio4 7.25 8.23 7.25 10.60 7.63 6.67
Benchmarks
P/BV Ratio, Competitors5
Advanced Micro Devices Inc. 3.15 4.85 2.32 19.21 17.77
Analog Devices Inc. 3.09 2.53 2.35 2.50 4.22 3.61
Broadcom Inc. 15.29 21.59 10.23 10.50 7.40 5.09
Intel Corp. 0.85 1.75 1.15 2.05 2.84
KLA Corp. 28.07 23.25 40.05 15.98 11.83 8.15
Lam Research Corp. 12.13 10.58 10.10 13.64 10.55 6.40
Micron Technology Inc. 2.51 1.74 1.15 1.79 1.50 1.40
Monolithic Power Systems Inc. 8.81 17.09 13.69 17.25 18.36
NVIDIA Corp. 39.25 26.03 24.95 20.14 15.49
Qualcomm Inc. 7.31 5.72 7.00 15.59 24.00 19.69
Texas Instruments Inc. 9.86 8.57 11.33 11.87 17.02
P/BV Ratio, Sector
Semiconductors & Semiconductor Equipment 9.25 6.50 5.22 6.29 6.21
P/BV Ratio, Industry
Information Technology 13.17 11.47 10.47 12.50 11.10

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 19,001,000,000 ÷ 813,684,638 = 23.35

3 Closing price as at the filing date of Applied Materials Inc. Annual Report.

4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 169.35 ÷ 23.35 = 7.25

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Applied Materials Inc. P/BV ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.