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GuruFocus has detected 5 Warning Signs with Applied Materials Inc $AMAT.
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Applied Materials Inc (NAS:AMAT)
EV-to-EBITDA
12.01 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Applied Materials Inc's enterprise value is $36,162 Mil. Applied Materials Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2017 was $3,011 Mil. Therefore, Applied Materials Inc's EV/EBITDA ratio for today is 12.01.

AMAT' s EV-to-EBITDA Range Over the Past 10 Years
Min: -994.7   Max: 186.2
Current: 12.01

-994.7
186.2

During the past 13 years, the highest EV/EBITDA Ratio of Applied Materials Inc was 186.20. The lowest was -994.70. And the median was 10.80.

AMAT's EV-to-EBITDA is ranked higher than
53% of the 517 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 12.89 vs. AMAT: 12.01 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Applied Materials Inc's stock price is $36.43. Applied Materials Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2017 was $1.95. Therefore, Applied Materials Inc's P/E Ratio for today is 18.68.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Applied Materials Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=36162.212/3011
=12.01

Applied Materials Inc's current Enterprise Value is $36,162 Mil.
Applied Materials Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2017 was 528 (Apr. 2016 ) + 699 (Jul. 2016 ) + 878 (Oct. 2016 ) + 906 (Jan. 2017 ) = $3,011 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Applied Materials Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=36.43/1.95
=18.68

Applied Materials Inc's share price for today is $36.43.
Applied Materials Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2017 was 0.29 (Apr. 2016 ) + 0.46 (Jul. 2016 ) + 0.55 (Oct. 2016 ) + 0.65 (Jan. 2017 ) = $1.95.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Applied Materials Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
ev2ebitda 9.018.74-82.798.194.4015.2633.2214.8810.0612.10

Applied Materials Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebitda 14.8814.5612.3010.6510.0611.3612.0812.9312.1012.02
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