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Applied MaterialsXSWX:AMAT -0.93%85 3-Year FCF Growth Rate is 10.30% as of Jul. 2026, which is 42% below its 10-year median of 17.90. GuruFocus rates XSWX:AMAT with a GF Score™ of 85/100 and a GF Value™ of CHF196.73. The stock has 1 warning sign investors should review. Among 634 Semiconductors companies, Applied Materials ranks better than 58.04% on this metric.
During the past 12 months, Applied Materials's average Free Cash Flow per Share Growth Rate was -1.40% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 10.30% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 16.90% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was 21.80% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
During the past 13 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of Applied Materials was 175.90% per year. The lowest was -83.10% per year. And the median was 17.90% per year.
Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.
Applied Materials 3-Year FCF Growth Rate Related Terms
XSWX:AMAT vs LRCX, KLAC, TER: 3-Year FCF Growth Rate Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Materials 3-Year FCF Growth Rate vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's 3-Year FCF Growth Rate distribution charts can be found below:
* The bar in red indicates where Applied Materials's 3-Year FCF Growth Rate falls into.
This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
What does a 3-Year FCF Growth Rate of 10.30% mean?
Applied Materials (XSWX:AMAT) has a 3-Year FCF Growth Rate of 10.30% as of Jul. 2026. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Applied Materials and its competitors. This is 42% below median its historical median of 17.90. According to the industry distribution chart, Applied Materials ranks #266 out of 634 companies in the Semiconductors industry, placing it in the top 42%.
Is Applied Materials' 3-Year FCF Growth Rate too high?
Applied Materials' current 3-Year FCF Growth Rate of 10.30% is 42% below median its 10-year median of 17.90. The Semiconductors industry median 3-Year FCF Growth Rate is 3.00. Applied Materials' value of 10.30% is 243.3% above this industry median. Based on the distribution chart, Applied Materials ranks #266 out of 634 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Applied Materials has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' 3-Year FCF Growth Rate compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #266 out of 634 companies for 3-Year FCF Growth Rate. This puts Applied Materials in the upper half of its industry. The industry median 3-Year FCF Growth Rate is 3.00. Applied Materials' value of 10.30% is 243.3% above this benchmark. While the company's 10-year median is 17.90 vs. the industry median of 3.00, Applied Materials has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year FCF Growth Rate for a Semiconductors company?
The median 3-Year FCF Growth Rate among Semiconductors companies is 3.00, based on 634 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year FCF Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year FCF Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current 3-Year FCF Growth Rate of 10.30% is 243.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year FCF Growth Rate mean?
A high 3-Year FCF Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Applied Materials and its competitors. For the Semiconductors industry, the median 3-Year FCF Growth Rate is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current 3-Year FCF Growth Rate is 10.30%, which is 42% below median its own 10-year median of 17.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Materials stock overvalued right now?
Applied Materials (XSWX:AMAT) has a current 3-Year FCF Growth Rate of 10.30%. The stock's GF Value™ is CHF196.73, compared to a current price of CHF353.30 — trading 79.6% above its estimated fair value. The current 3-Year FCF Growth Rate is 10.30%, which is 42% below median its 10-year median of 17.90 and 243.3% above the Semiconductors industry median of 3.00. Applied Materials' overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year FCF Growth Rate calculated?
3-Year FCF Growth Rate is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current 3-Year FCF Growth Rate is 10.30% as of Jul. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Materials (XSWX:AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of CHF353.30 is trading 79.6% above its estimated GF Value™ of CHF196.73.
Key valuation signals for XSWX:AMAT:
3-Year FCF Growth Rate: 10.30% (42% below median its 10-year median of 17.90)
GF Value™: CHF196.73 vs. price of CHF353.30 (79.6% above fair value)
Industry Position: 243.3% above the Semiconductors median (#266 of 634)
No single metric tells the full story. See the XSWX:AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
85GF Score
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