Applied Materials, Inc. (AMAT) Financial Ratios
30 years of historical data (1996–2025) · Technology · Semiconductors
EV/EBITDA
↑
40.39
↑+148% vs avg
5yr avg: 16.30
30Y Low4.5·High40.2
P/FCF
↑
59.65
↑+168% vs avg
5yr avg: 22.24
30Y Low7.6·High63.8
P/B Ratio
↓
16.96
↑+108% vs avg
5yr avg: 8.15
30Y Low1.9·High10.3
ROE
↓
35.5%
↑-23% vs avg
5yr avg: 45.8%
30Y Low-4%·High53%
Debt/EBITDA
↓
0.78
+2% vs avg
5yr avg: 0.76
30Y Low0.1·High8.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AMAT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Applied Materials, Inc. trades at 49.5x earnings, 153% above its 5-year average of 19.5x, sitting at the 86th percentile of its historical range. Compared to the Technology sector median P/E of 27.2x, the stock trades at a premium of 82%. On a free-cash-flow basis, the stock trades at 59.7x P/FCF, 168% above the 5-year average of 22.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $339.9B | $184.8B | $155.6B | $110.9B | $78.7B | $125.6B | $56.3B | $52.7B | $33.2B | $61.5B | $32.0B |
| Enterprise Value | $339.2B | $184.1B | $154.1B | $110.8B | $82.5B | $126.3B | $56.6B | $54.8B | $35.1B | $61.7B | $31.9B |
| P/E Ratio → | 49.49 | 26.41 | 21.66 | 16.19 | 12.06 | 21.35 | 15.55 | 19.48 | 10.93 | 17.88 | 18.61 |
| P/S Ratio | 11.98 | 6.52 | 5.72 | 4.18 | 3.05 | 5.45 | 3.27 | 3.60 | 1.99 | 4.18 | 2.95 |
| P/B Ratio | 16.96 | 9.05 | 8.19 | 6.79 | 6.45 | 10.25 | 5.32 | 6.41 | 4.85 | 6.57 | 4.43 |
| P/FCF | 59.65 | 32.44 | 20.78 | 14.61 | 17.06 | 26.31 | 16.63 | 18.77 | 10.49 | 18.83 | 14.45 |
| P/OCF | 42.71 | 23.23 | 17.93 | 12.75 | 14.57 | 23.08 | 14.79 | 16.22 | 8.77 | 17.03 | 12.97 |
P/E links to full P/E history page with 30-year chart
AMAT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Applied Materials, Inc.'s enterprise value stands at 40.4x EBITDA, 148% above its 5-year average of 16.3x. The Technology sector median is 17.3x, placing the stock at a 133% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.49 | 5.67 | 4.18 | 3.20 | 5.48 | 3.29 | 3.75 | 2.10 | 4.20 | 2.95 |
| EV / EBITDA | 40.39 | 21.92 | 18.66 | 13.57 | 10.02 | 17.35 | 11.94 | 14.77 | 7.09 | 14.22 | 12.56 |
| EV / EBIT | 40.92 | 19.30 | 18.35 | 13.93 | 10.54 | 18.03 | 12.85 | 15.64 | 7.57 | 15.38 | 14.72 |
| EV / FCF | — | 32.32 | 20.59 | 14.59 | 17.89 | 26.46 | 16.74 | 19.54 | 11.08 | 18.92 | 14.42 |
AMAT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Applied Materials, Inc. earns an operating margin of 29.2%. Return on equity of 35.5% is exceptionally high. ROIC of 33.3% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.7% | 48.7% | 47.5% | 46.7% | 46.5% | 47.3% | 44.7% | 43.7% | 45.0% | 45.0% | 41.7% |
| Operating Margin | 29.2% | 29.2% | 28.9% | 28.9% | 30.2% | 29.9% | 25.4% | 22.9% | 26.9% | 26.8% | 19.9% |
| Net Profit Margin | 24.7% | 24.7% | 26.4% | 25.9% | 25.3% | 25.5% | 21.0% | 18.5% | 18.2% | 23.9% | 15.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 35.5% | 35.5% | 40.6% | 48.0% | 53.4% | 51.6% | 38.5% | 35.9% | 37.5% | 42.5% | 23.2% |
| ROA | 19.8% | 19.8% | 22.0% | 23.9% | 24.8% | 24.4% | 17.5% | 14.8% | 16.4% | 20.7% | 11.5% |
| ROIC | 33.3% | 33.3% | 34.9% | 35.6% | 40.2% | 43.2% | 30.7% | 26.3% | 36.7% | 35.2% | 22.3% |
| ROCE | 30.6% | 30.6% | 31.9% | 35.8% | 40.1% | 36.9% | 26.9% | 23.7% | 30.9% | 30.0% | 19.2% |
AMAT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Applied Materials, Inc. carries a Debt/EBITDA ratio of 0.8x, which is very conservative (73% below the sector average of 2.9x). The company holds a net cash position — cash of $7.2B exceeds total debt of $6.6B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 30.8x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.32 | 0.32 | 0.35 | 0.37 | 0.48 | 0.47 | 0.54 | 0.65 | 0.78 | 0.57 | 0.46 |
| Debt / EBITDA | 0.78 | 0.78 | 0.80 | 0.73 | 0.71 | 0.79 | 1.20 | 1.43 | 1.07 | 1.22 | 1.31 |
| Net Debt / Equity | — | -0.03 | -0.07 | -0.01 | 0.31 | 0.06 | 0.03 | 0.27 | 0.27 | 0.03 | -0.01 |
| Net Debt / EBITDA | -0.08 | -0.08 | -0.17 | -0.02 | 0.47 | 0.10 | 0.08 | 0.59 | 0.38 | 0.07 | -0.03 |
| Debt / FCF | — | -0.12 | -0.19 | -0.02 | 0.83 | 0.16 | 0.11 | 0.78 | 0.59 | 0.09 | -0.04 |
| Interest Coverage | 30.81 | 30.81 | 31.85 | 32.16 | 34.16 | 29.19 | 18.19 | 14.14 | 19.19 | 19.88 | 13.88 |
Net cash position: cash ($7.2B) exceeds total debt ($6.6B)
AMAT Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Applied Materials, Inc.'s current ratio of 2.61x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.87x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.61 | 2.61 | 2.51 | 2.60 | 2.16 | 2.54 | 3.00 | 2.30 | 2.70 | 3.14 | 2.30 |
| Quick Ratio | 1.87 | 1.87 | 1.87 | 1.82 | 1.35 | 1.86 | 2.12 | 1.51 | 1.75 | 2.43 | 1.74 |
| Cash Ratio | 1.07 | 1.07 | 1.12 | 0.93 | 0.35 | 0.86 | 1.29 | 0.81 | 1.03 | 1.77 | 1.03 |
| Asset Turnover | — | 0.78 | 0.79 | 0.86 | 0.96 | 0.89 | 0.77 | 0.77 | 0.95 | 0.76 | 0.74 |
| Inventory Turnover | 2.46 | 2.46 | 2.63 | 2.47 | 2.33 | 2.82 | 2.44 | 2.37 | 2.47 | 2.76 | 3.08 |
| Days Sales Outstanding | — | 66.71 | 71.91 | 76.77 | 92.42 | 87.77 | 66.01 | 65.99 | 52.92 | 58.06 | 76.84 |
AMAT Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Applied Materials, Inc. returns 1.8% to shareholders annually — split between a 0.4% dividend yield and 1.4% buyback yield. The payout ratio of 19.8% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 2.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.7% | 0.8% | 0.9% | 1.1% | 0.7% | 1.4% | 1.5% | 1.8% | 0.7% | 1.4% |
| Payout Ratio | 19.8% | 19.8% | 16.6% | 14.2% | 13.4% | 14.2% | 21.7% | 28.5% | 19.9% | 12.2% | 25.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.0% | 3.8% | 4.6% | 6.2% | 8.3% | 4.7% | 6.4% | 5.1% | 9.1% | 5.6% | 5.4% |
| FCF Yield | 1.7% | 3.1% | 4.8% | 6.8% | 5.9% | 3.8% | 6.0% | 5.3% | 9.5% | 5.3% | 6.9% |
| Buyback Yield | 1.4% | 2.6% | 2.5% | 2.0% | 7.8% | 3.0% | 1.2% | 4.6% | 15.9% | 1.9% | 5.9% |
| Total Shareholder Yield | 1.8% | 3.4% | 3.2% | 2.9% | 8.9% | 3.7% | 2.6% | 6.0% | 17.7% | 2.6% | 7.3% |
| Shares Outstanding | — | $808M | $834M | $845M | $877M | $919M | $923M | $945M | $1.0B | $1.1B | $1.1B |
Peer Comparison
Compare AMAT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AMATYou | $340B | 49.5 | 40.4 | 59.7 | 48.7% | 29.2% | 35.5% | 33.3% | 0.8 |
 LRCX | $371B | 71.6 | 58.8 | 68.5 | 48.7% | 32.0% | 58.2% | 55.7% | 0.8 |
 KLAC | $239B | 59.8 | 43.1 | 63.8 | 62.3% | 43.1% | 100.8% | 46.5% | 1.1 |
 ASML | $600B | 55.5 | 42.3 | 48.0 | 52.8% | 34.6% | 48.5% | 80.9% | 0.2 |
 ONTO | $15B | 105.8 | 73.9 | 48.8 | 49.7% | 13.2% | 6.8% | 5.7% | 0.1 |
 NVMI | $16B | 93.0 | 76.8 | 71.8 | 57.6% | 27.9% | 21.9% | 14.9% | 1.2 |
 ACMR | $4B | 40.4 | 25.5 | — | 44.4% | 12.1% | 6.2% | 7.0% | 2.4 |
 ICHR | $3B | -47.1 | — | — | 9.3% | -4.1% | -7.7% | -3.9% | — |
 MKSI | $20B | 67.2 | 26.2 | 39.8 | 40.4% | 14.4% | 11.7% | 6.5% | 5.2 |
 CAMT | $7B | 83.7 | — | — | 48.9% | 25.2% | 23.1% | 13.7% | 1.7 |
 COHU | $2B | -31.2 | — | 217.2 | 34.5% | -13.3% | -9.0% | -5.7% | — |
| Technology Median | — | 27.2 | 17.3 | 19.8 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonAMAT — Frequently Asked Questions
Quick answers to the most common questions about buying AMAT stock.
What is Applied Materials, Inc.'s P/E ratio?
Applied Materials, Inc.'s current P/E ratio is 49.5x. The historical average is 29.8x. This places it at the 86th percentile of its historical range.
What is Applied Materials, Inc.'s EV/EBITDA?
Applied Materials, Inc.'s current EV/EBITDA is 40.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.8x.
What is Applied Materials, Inc.'s ROE?
Applied Materials, Inc.'s return on equity (ROE) is 35.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 22.8%.
Is AMAT stock overvalued?
Based on historical data, Applied Materials, Inc. is trading at a P/E of 49.5x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Applied Materials, Inc.'s dividend yield?
Applied Materials, Inc.'s current dividend yield is 0.40% with a payout ratio of 19.8%.
What are Applied Materials, Inc.'s profit margins?
Applied Materials, Inc. has 48.7% gross margin and 29.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Applied Materials, Inc. have?
Applied Materials, Inc.'s Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.