AMAT (Applied Materials) Effective Interest Rate on Debt %: 3.82% (As of Apr. 2026)


AMAT Applied Materials Inc AMAT
85 GF Score
Price $626.84
GF Value $217.76
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Applied Materials Effective Interest Rate on Debt %?

Applied Materials AMAT -6.16% 85 Effective Interest Rate on Debt % is 3.82% as of Apr. 2026. GuruFocus rates AMAT with a GF Score™ of 85/100 and a GF Value™ of $217.76 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Applied Materials's annualized positive value of Interest Expense for the quarter that ended in Apr. 2026 was $276 Mil. Applied Materials's average total debt for the quarter that ended in Apr. 2026 was $7,229 Mil. Therefore, Applied Materials's annualized Effective Interest Rate on Debt % for the quarter that ended in Apr. 2026 was 3.82%.


Applied Materials  (NAS:AMAT) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Applied Materials Effective Interest Rate on Debt % Related Terms


Applied Materials Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Applied Materials's Effective Interest Rate on Debt % 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.

Applied Materials Effective Interest Rate on Debt % Chart

Applied Materials Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.12 3.94 4.02 3.92 3.94

Applied Materials Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.10 3.93 4.11 3.88 3.82

AMAT vs LRCX, KLAC, TER: Effective Interest Rate on Debt % Comparison

For the Semiconductor Equipment & Materials subindustry, Applied Materials's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Applied Materials's Effective Interest Rate on Debt % falls into.


AMAT
85GF Score
Applied Materials Inc AMAT
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Applied Materials Effective Interest Rate on Debt % Calculation

Applied Materials's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Oct. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Oct. 2024 )+Total Debt  (A: Oct. 2025 ))/ count )
=-1  *  -269/( (6606+7050)/ 2 )
=-1  *  -269/6828
=3.94 %

where

Applied Materials's annualized Effective Interest Rate on Debt % for the quarter that ended in Apr. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jan. 2026 )+Total Debt  (Q: Apr. 2026 ))/ count )
=-1  *  -276/( (7190+7268)/ 2 )
=-1  *  -276/7229
=3.82 %

where

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Apr. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 3.82% mean?
Applied Materials (AMAT) has a Effective Interest Rate on Debt % of 3.82% as of Apr. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Applied Materials and its competitors.
Is Applied Materials' Effective Interest Rate on Debt % too high?
Applied Materials' current Effective Interest Rate on Debt % is 3.82%. Overall, Applied Materials has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Effective Interest Rate on Debt % compare to LRCX and KLAC?
Applied Materials' Effective Interest Rate on Debt % of 3.82% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Semiconductors company?
A good Effective Interest Rate on Debt % depends on the Semiconductors industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Applied Materials and its competitors. Applied Materials's current Effective Interest Rate on Debt % is 3.82%. 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 (AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is $217.76, compared to a current price of $626.84 — trading 187.9% above its estimated fair value. The current Effective Interest Rate on Debt % is 3.82%. Applied Materials' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Applied Materials (AMAT), the current Effective Interest Rate on Debt % is 3.82% 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 (AMAT) Overvalued in 2026?

Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued. The current stock price of $626.84 is trading 187.9% above its estimated GF Value™ of $217.76. GuruFocus considers Applied Materials to be Significantly Overvalued.

Key valuation signals for AMAT:

  • Effective Interest Rate on Debt %: 3.82%
  • GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
  • GF Score™: 85/100 with 6 warning signs

No single metric tells the full story. See the AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Applied Materials Business Description

Address 3050 Bowers Avenue, P.O. Box 58039, Santa Clara, CA, USA, 95052-8039
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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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$626.84
Price
$217.76
GF Value