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Applied Materials Inc
NASDAQ:AMAT

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Applied Materials Inc
NASDAQ:AMAT
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Price: 403.48 USD 2.32% Market Closed
Market Cap: $320.2B

P/OCF

36.7
Current
88%
More Expensive
vs 3-y average of 19.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
36.7
=
Market Cap
$279.8B
/
Operating Cash Flow
$8.7B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
36.7
=
Market Cap
$279.8B
/
Operating Cash Flow
$8.7B

Valuation Scenarios

Applied Materials Inc is trading above its 3-year average

If P/OCF returns to its 3-Year Average (19.5), the stock would be worth $214.08 (47% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-64%
Maximum Upside
No Upside Scenarios
Average Downside
46%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 36.7 $403.48
0%
3-Year Average 19.5 $214.08
-47%
5-Year Average 19.5 $214.08
-47%
Industry Average 27.2 $298.71
-26%
Country Average 13.3 $146.54
-64%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
US
Applied Materials Inc
NASDAQ:AMAT
320.2B USD 36.7 40.8
NL
ASML Holding NV
AEX:ASML
481.7B EUR 33.7 45.6
US
Lam Research Corp
NASDAQ:LRCX
332.3B USD 46.7 53.5
US
Brooks Automation Inc
LSE:0HQ1
234.5B USD 3 757.9 -4 053.1
US
KLA Corp
NASDAQ:KLAC
237.6B USD 49.9 52.1
JP
Tokyo Electron Ltd
TSE:8035
20.8T JPY 41.6 41.4
JP
Advantest Corp
TSE:6857
20.3T JPY 60.6 70.2
US
Teradyne Inc
NASDAQ:TER
60.1B USD 89.1 108.4
JP
Disco Corp
TSE:6146
7.8T JPY 78.8 59.5
CN
NAURA Technology Group Co Ltd
SZSE:002371
346.3B CNY 161.3 62.3
NL
ASM International NV
AEX:ASM
40.9B EUR 38.4 56.3
P/E Multiple
Earnings Growth PEG
US
Applied Materials Inc
NASDAQ:AMAT
Average P/E: 59
40.8
20%
2
NL
ASML Holding NV
AEX:ASML
45.6
20%
2.3
US
Lam Research Corp
NASDAQ:LRCX
53.5
24%
2.2
US
B
Brooks Automation Inc
LSE:0HQ1
Negative Multiple: -4 053.1 N/A N/A
US
KLA Corp
NASDAQ:KLAC
52.1
22%
2.4
JP
Tokyo Electron Ltd
TSE:8035
41.4
13%
3.2
JP
Advantest Corp
TSE:6857
70.2
50%
1.4
US
Teradyne Inc
NASDAQ:TER
108.4
44%
2.5
JP
Disco Corp
TSE:6146
59.5
16%
3.7
CN
NAURA Technology Group Co Ltd
SZSE:002371
62.3
N/A N/A
NL
ASM International NV
AEX:ASM
56.3
23%
2.4

Market Distribution

Higher than 89% of companies in the United States of America
Percentile
89th
Based on 9 488 companies
89th percentile
36.7
Low
0 — 8.8
Typical Range
8.8 — 20.1
High
20.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 8.8
Median 13.3
70th Percentile 20.1
Max 3 188 432.5

Applied Materials Inc
Glance View

In the dynamic world of semiconductor manufacturing, Applied Materials Inc. stands as a pivotal player, knitting together the intricate tapestry of technology that powers our digital age. Born in the heart of Silicon Valley in 1967, Applied Materials has evolved into a cornerstone of the chip-making industry, delivering essential equipment and services that enable the production of virtually every kind of advanced semiconductor. The company specializes in making complex systems for processes such as chemical vapor deposition, etching, and wafer inspection – all critical steps in the creation of integrated circuits that serve as the brains of myriad electronic devices. With state-of-the-art technology, Applied Materials helps manufacturers achieve ever-higher levels of chip efficiency and performance, driving the progression from traditional semiconductors to advanced, next-generation chips. Monetizing this technological prowess, Applied Materials generates revenue by selling its sophisticated equipment and offering maintenance and optimization services that ensure these high-tech machines continue to function at peak performance. Furthermore, the company has strategically positioned itself to capitalize on the relentless pace of innovation in electronics, regularly introducing upgraded tools and technologies that cater to the constant demand for smaller, faster, and more energy-efficient semiconductors. By maintaining close relationships with industry giants like Intel and Samsung, Applied Materials not only anticipates technological trends but also ensures its offerings are precisely aligned with the evolving needs of its clients. This symbiotic relationship between product innovation and customer alignment is what propels Applied Materials’ sustained financial success in the hyper-competitive semiconductor ecosystem.

AMAT Intrinsic Value
189.28 USD
Overvaluation 53%
Intrinsic Value
Price $403.48
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