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Applied Materials Inc
NASDAQ:AMAT

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Applied Materials Inc
NASDAQ:AMAT
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Price: 381.11 USD -5.87% Market Closed
Market Cap: $302.5B

EV/FCFF

48.5
Current
118%
More Expensive
vs 3-y average of 22.3

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
48.5
=
Enterprise Value
$277.9B
/
Free Cash Flow to Firm
$6.2B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
48.5
=
Enterprise Value
$277.9B
/
Free Cash Flow to Firm
$6.2B

Valuation Scenarios

Applied Materials Inc is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (22.3), the stock would be worth $175.02 (54% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-54%
Maximum Upside
No Upside Scenarios
Average Downside
42%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 48.5 $381.11
0%
3-Year Average 22.3 $175.02
-54%
5-Year Average 22.3 $175.02
-54%
Industry Average 45.2 $354.73
-7%
Country Average 23.2 $182.43
-52%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
US
Applied Materials Inc
NASDAQ:AMAT
302.5B USD 48.5 38.6
NL
ASML Holding NV
AEX:ASML
451.6B EUR 39.7 44.2
US
Lam Research Corp
NASDAQ:LRCX
314.2B USD 52.2 46.8
US
KLA Corp
NASDAQ:KLAC
237.2B USD 54.2 52
US
Brooks Automation Inc
LSE:0HQ1
224.7B USD 7 252.9 -3 884.7
JP
Advantest Corp
TSE:6857
21.6T JPY 70.6 74.9
JP
Tokyo Electron Ltd
TSE:8035
20.7T JPY 74 41.1
US
Teradyne Inc
NASDAQ:TER
59.3B USD 131.3 107
CN
NAURA Technology Group Co Ltd
SZSE:002371
374.8B CNY -2 852.2 66.6
JP
Disco Corp
TSE:6146
8.3T JPY 81.4 61.2
NL
ASM International NV
AEX:ASM
39.7B EUR 137.3 40
P/E Multiple
Earnings Growth PEG
US
Applied Materials Inc
NASDAQ:AMAT
Average P/E: 57.3
38.6
20%
1.9
NL
ASML Holding NV
AEX:ASML
44.2
20%
2.2
US
Lam Research Corp
NASDAQ:LRCX
46.8
24%
2
US
KLA Corp
NASDAQ:KLAC
52
22%
2.4
US
B
Brooks Automation Inc
LSE:0HQ1
Negative Multiple: -3 884.7 N/A N/A
JP
Advantest Corp
TSE:6857
74.9
50%
1.5
JP
Tokyo Electron Ltd
TSE:8035
41.1
13%
3.2
US
Teradyne Inc
NASDAQ:TER
107
44%
2.4
CN
NAURA Technology Group Co Ltd
SZSE:002371
66.6
N/A N/A
JP
Disco Corp
TSE:6146
61.2
N/A N/A
NL
ASM International NV
AEX:ASM
40
23%
1.7

Market Distribution

Higher than 81% of companies in the United States of America
Percentile
81th
Based on 8 393 companies
81th percentile
48.5
Low
0 — 15.4
Typical Range
15.4 — 35.1
High
35.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 15.4
Median 23.2
70th Percentile 35.1
Max 3 178 983.5

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 50%
Intrinsic Value
Price $381.11
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