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Applied Materials, Inc. — Intrinsic Value & Fair Price

AMAT
NASDAQTechnologySemiconductorsCIK 0000006951appliedmaterials.comAbout AMAT
Last close · Oct 16, 2026409.29−20.72 (−4.82%)
Market cap$324.8B
Model value · DCF · Perpetuity growth · 5y
216.31
Applied Materials closed at $409.29 — overvalued by 89% vs model.
158.11the model's range341.62

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
34.90 – 765.73
Wall St. target
600.00 32% below
Above model, 1y
78 of 78 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
0.48%
Past 2 years
low 0.26%high 1.26%
Dividends per share, a year at a time
$0.92Aug ’21$1.00Aug ’22$1.16Aug ’23$1.44Aug ’24$1.72Aug ’25$1.98TTM
Dividends / free cash flow, FY2025
24.3%
Raised
8 years in a row
Growth, 5 yrs
16.6% a year
Last change
+15.2% · May 2026
Every payment, with ex-dates · latest $0.53, paid Sep 10, 2026

Research on AMAT

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How it is valued

Valued asCyclical
Low/slowing growth (~3% recent)High profitability (25% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
47.3×
EV / EBITDA
33.6×
FCF yield
1.7%
Dividend yield, TTM
0.48%
Beta
1.59
Cost of capital (WACC)
10.73%
Full financials

Analyst actions

third-party, quoted
10-15Evercore ISI · target590.00
09-28Morgan Stanley · target563.00
09-01UBS · target695.00
08-05Erste Group · “Hold” from “Buy”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
Side by side:vs LRCXvs ASML

The weekly

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About Applied Materials

Applied Materials, Inc. engages in provision of materials engineering solutions used to produce semiconductors. The firm also focuses on design, development, production, and servicing of the critical wafer fabrication tools used for customers to manufacture semiconductors. It operates through the following segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes designing, development, manufacturing and sale of equipment used to fabricate semiconductor chips referred to as integrated circuits. The AGS segment engages in provision of services, spares, and factory automation software to customer fabrication plants globally. The company was founded on November 10, 1967 and is headquartered in Santa Clara, CA.

CEO
Gary E. Dickerson
Headquarters
Santa Clara, CA
Employees
36,500
IPO
1980-03-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.