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Applied Materials Inc (NAS:AMAT)
Price-to-Free-Cash-Flow Ratio
21.79 (As of Today)

As of today, Applied Materials Inc's share price is $23.56. Applied Materials Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Apr. 2016 was $1.08. Hence, Applied Materials Inc's Price-to-Free-Cash-Flow Ratio for today is 21.79.

AMAT' s Price-to-Free-Cash-Flow ratio Range Over the Past 10 Years
Min: 6.1   Max: 276.82
Current: 21.83

6.1
276.82

During the past 13 years, Applied Materials Inc's highest Price-to-Free-Cash-Flow Ratio was 276.82. The lowest was 6.10. And the median was 16.99.

AMAT's Price-to-Free-Cash-Flow ratio is ranked lower than
63% of the 404 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 16.83 vs. AMAT: 21.83 )

Applied Materials Inc's Free Cash Flow per Share for the three months ended in Apr. 2016 was $0.39. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Apr. 2016 was $1.08.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Applied Materials Inc was 20.40% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -16.40% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was -11.20% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 1.10% per year.

During the past 13 years, Applied Materials Inc's highest 3-Year average Free Cash Flow per Share Growth Rate was 175.90% per year. The lowest was -61.70% per year. And the median was 17.60% per year.


Definition

Applied Materials Inc's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=23.56/1.081
=21.79

Applied Materials Inc's Share Price of today is $23.56.
Applied Materials Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Apr. 2016 was 0.23 (Jul. 2015 ) + 0.343 (Oct. 2015 ) + 0.12 (Jan. 2016 ) + 0.388 (Apr. 2016 ) = $1.08.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Applied Materials Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
pfcf 15.6414.1212.47196.7710.737.398.0550.7417.4321.75

Applied Materials Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
pfcf 26.1623.7421.8817.4322.5722.0424.5521.7520.0118.94
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