Applied Materials (BUE:AMAT) Cyclically Adjusted Price-to-FCF : 40.88 (As of Apr. 27, 2024)

Applied Materials Cyclically Adjusted Price-to-FCF Chart

Applied Materials Annual Data
	Trend	Oct14	Oct15	Oct16	Oct17	Oct18	Oct19	Oct20	Oct21	Oct22	Oct23
Cyclically Adjusted Price-to-FCF		Get a 7-Day Free Trial					28.40	27.37	52.02	27.60	31.77

Applied Materials Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Cyclically Adjusted Price-to-FCF	Get a 7-Day Free Trial															32.33	30.40	38.01	31.77	37.60

Competitive Comparison of Applied Materials's Cyclically Adjusted Price-to-FCF

For the Semiconductor Equipment & Materials subindustry, Applied Materials's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Applied Materials's Cyclically Adjusted Price-to-FCF falls into.

Applied Materials Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Applied Materials's Cyclically Adjusted Price-to-FCF for today is calculated as

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Applied Materials's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Applied Materials's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Current CPI (Jan. 2024) = 129.4194.

Applied Materials Quarterly Data

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

Applied Materials  (BUE:AMAT) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.

Applied Materials Cyclically Adjusted Price-to-FCF Related Terms

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Applied Materials (BUE:AMAT) Business Description