Applied MaterialsXSWX:AMAT 86 Debt-to-EBITDA is 0.53 as of Apr. 2026, which is 42% below its 10-year median of 0.91. GuruFocus rates XSWX:AMAT with a GF Score™ of 86/100 and a GF Value™ of CHF167.16 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 718 Semiconductors companies, Applied Materials ranks better than 63.93% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Applied Materials's Debt-to-EBITDA or its related term are showing as below:
XSWX:AMAT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.65 Med: 0.91 Max: 1.37
Current: 0.65
During the past 13 years, the highest Debt-to-EBITDA Ratio of Applied Materials was 1.37. The lowest was 0.65. And the median was 0.91.
XSWX:AMAT's Debt-to-EBITDA is ranked better than 63.93% of 718
companies
in the Semiconductors industry
Industry Median: 1.445
vs XSWX:AMAT: 0.65
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Applied Materials Debt-to-EBITDA Related Terms
Applied Materials Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Applied Materials's Debt-to-EBITDA can be seen below:
* 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.
XSWX:AMAT vs LRCX, KLAC, TER: Debt-to-EBITDA Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Applied Materials's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
Applied Materials (XSWX:AMAT) has a Debt-to-EBITDA of 0.53 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Applied Materials. This is 42% below median its historical median of 0.91. Over the past decade, Applied Materials' Debt-to-EBITDA has ranged from 0.65 to 1.37. According to the industry distribution chart, Applied Materials ranks #259 out of 718 companies in the Semiconductors industry, placing it in the top 36.1%.
Is Applied Materials' Debt-to-EBITDA too high?
Applied Materials' current Debt-to-EBITDA of 0.53 is 42% below median its 10-year median of 0.91. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 1.37. The Semiconductors industry median Debt-to-EBITDA is 1.45. Applied Materials' value of 0.53 is 63.3% below this industry median. Based on the distribution chart, Applied Materials ranks #259 out of 718 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Applied Materials has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Debt-to-EBITDA compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #259 out of 718 companies for Debt-to-EBITDA. This puts Applied Materials in the upper half of its industry. The industry median Debt-to-EBITDA is 1.45. Applied Materials' value of 0.53 is 63.3% below this benchmark. Historically, Applied Materials' own Debt-to-EBITDA has ranged from 0.65 to 1.37 over the past decade. While the company's 10-year median is 0.91 vs. the industry median of 1.45, Applied Materials has consistently been below 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 Debt-to-EBITDA for a Semiconductors company?
The median Debt-to-EBITDA among Semiconductors companies is 1.45, based on 718 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current Debt-to-EBITDA of 0.53 is 63.3% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Applied Materials. For the Semiconductors industry, the median Debt-to-EBITDA is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Debt-to-EBITDA is 0.53, which is 42% below median its own 10-year median of 0.91. 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?
Based on GuruFocus' analysis, Applied Materials (XSWX:AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF167.16, compared to a current price of CHF433.45 — trading 159.3% above its estimated fair value. The current Debt-to-EBITDA is 0.53, which is 42% below median its 10-year median of 0.91 and 63.3% below the Semiconductors industry median of 1.45. Applied Materials' overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current Debt-to-EBITDA is 0.53 as of Apr. 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 CHF433.45 is trading 159.3% above its estimated GF Value™ of CHF167.16.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for XSWX:AMAT:
Debt-to-EBITDA: 0.53 (42% below median its 10-year median of 0.91)
GF Value™: CHF167.16 vs. price of CHF433.45 (159.3% above fair value)
Industry Position: 63.3% below the Semiconductors median (#259 of 718)
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.
86GF Score
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