---
title: Applied Materials (AMAT) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/amat
ticker: AMAT
as_of: 2026-10-17
sector: Technology
industry: Semiconductors
---
# Applied Materials (AMAT)

Applied Materials (AMAT) closed at $409.29 on Oct 16, 2026, overvalued by 89% vs its model value of $216.31 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $409.29 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $216.31 |
| Price vs model | overvalued by 89% vs model |
| Range of that model | $158.11 – $341.62 |
| Market value | $324.8B |
| P/E (fiscal 2025) | 47.3 |
| Net margin (fiscal 2025) | 24.7% |
| Free cash flow (fiscal 2025) | $5.7B |
| Dividend yield (trailing twelve months) | 0.48% |
| Beta | 1.59 |
| Cost of capital (WACC) | 10.73% |
| Business classification | Cyclical (Low/slowing growth (~3% recent), High profitability (25% net margin), Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Largest companies | #36 | $324.8B | https://sweetvaluelab.com/lists/largest-companies |
| Best performing this year | #31 | +59.3% | https://sweetvaluelab.com/lists/best-performing-this-year |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.48% |
| Dividends per share, last 12 months | $1.98 |
| Dividends / free cash flow (fiscal 2025) | 24.3% |
| Raised | 8 years in a row |
| Growth over 5 years | 16.6% a year |
| Latest payment | $0.53, ex-date Aug 20, 2026, paid Sep 10, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 25, 2021 | $0.92 |
| To Aug 24, 2022 | $1.00 |
| To Aug 23, 2023 | $1.16 |
| To Aug 22, 2024 | $1.44 |
| To Aug 21, 2025 | $1.72 |
| Trailing twelve months (to Aug 20, 2026) | $1.98 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $216.31 | $158.11 | $341.62 |
| DCF · Perpetuity growth · 10y | cross check | $290.02 | $211.25 | $458.49 |
| DCF · EBITDA exit · 5y | cross check | $682.08 | $553.62 | $831.18 |
| DCF · EBITDA exit · 10y | cross check | $765.73 | $580.87 | $1,005.05 |
| P/E · peers | cross check | $385.43 | $355.25 | $561.71 |
| P/E · own history | cross check | $222.40 | $192.03 | $279.24 |
| PEG | sanity check | $320.37 | $320.37 | $320.37 |
| EV/EBITDA · peers | cross check | $357.55 | $293.59 | $391.36 |
| EV/Revenue · peers | cross check | $440.56 | $375.32 | $577.99 |
| Earnings power value | cross check | $67.57 | $59.38 | $78.41 |
| Dividend discount | cross check | $34.90 | $25.73 | $46.57 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 3 open-market sales ($4.5M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | Sanders Adam | Corp. Controller & CAO | Tax withholding | 269 | $142,381.7 |
| Oct 2, 2026 | Sanders Adam | Corp. Controller & CAO | Open-market sell | 725 | $394,807.5 |
| Oct 1, 2026 | Deane Timothy M | SVP, Applied Global Services | Tax withholding | 2,644 | $1.4M |
| Sep 8, 2026 | BRUNER JUDY | Director | Open-market sell | 1,000 | $465,000 |
| Aug 27, 2026 | Palkhiwala Akash J. | Director | Grant / award | 279 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Aug 27, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/6951/000162828026059257/amat-20260827.htm |
| Aug 20, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/6951/000162828026058235/amat-20260726.htm |
| Aug 13, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/6951/000162828026056699/amat-20260813.htm |
| May 21, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/6951/000162828026037227/amat-20260426.htm |
| May 14, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/6951/000162828026035071/amat-20260514.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Chase Coleman | 2026-06-30 | 1,632,210 | $1.2B |
| Stephen Mandel | 2026-06-30 | 1,207,737 | $873.2M |
| Abrams Bison | 2026-06-30 | 552,000 | $399.1M |
| John Armitage | 2026-06-30 | 521,065 | $376.7M |

13 tracked managers in all.

## About

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.

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Source: https://sweetvaluelab.com/stocks/amat (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.