Applied MaterialsXSWX:AMAT -0.54%86 EV-to-EBIT is 45.71 as of Jul. 11, 2026, which is 198% above its 10-year median of 15.33. GuruFocus rates XSWX:AMAT with a GF Score™ of 86/100 and a GF Value™ of CHF177.24 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 683 Semiconductors companies, Applied Materials ranks worse than 55.34% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Applied Materials's Enterprise Value for the quarter that ended in Apr. 2026 was CHF239,748 Mil.
Applied Materials's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF8,451 Mil.
* 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 EV-to-EBIT Related Terms
Applied Materials EV-to-EBIT Historical Data
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The historical data trend for Applied Materials's EV-to-EBIT 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: EV-to-EBIT Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Applied Materials's EV-to-EBIT falls into.
Applied Materials's current Enterprise Value is CHF386,326 Mil.
Applied Materials's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF8,451 Mil.
* 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 (XSWX:AMAT) has a EV-to-EBIT of 45.71 as of Jul. 11, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Applied Materials and its competitors. This is 198% above median its historical median of 15.33. Over the past decade, Applied Materials' EV-to-EBIT has ranged from 6.74 to 46.90. According to the industry distribution chart, Applied Materials ranks #378 out of 683 companies in the Semiconductors industry, placing it in the top 55.3%.
Is Applied Materials' EV-to-EBIT too high?
Applied Materials' current EV-to-EBIT of 45.71 is 198% above median its 10-year median of 15.33. Over the past 10 years, this metric has ranged from a low of 6.74 to a high of 46.90. The Semiconductors industry median EV-to-EBIT is 37.17. Applied Materials' value of 45.71 is 23% above this industry median. Based on the distribution chart, Applied Materials ranks #378 out of 683 companies in the Semiconductors industry, which is below 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' EV-to-EBIT compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #378 out of 683 companies for EV-to-EBIT. This places Applied Materials in the lower half of its industry. The industry median EV-to-EBIT is 37.17. Applied Materials' value of 45.71 is 23% above this benchmark. Historically, Applied Materials' own EV-to-EBIT has ranged from 6.74 to 46.90 over the past decade. While the company's 10-year median is 15.33 vs. the industry median of 37.17, 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 EV-to-EBIT for a Semiconductors company?
The median EV-to-EBIT among Semiconductors companies is 37.17, based on 683 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current EV-to-EBIT of 45.71 is 23% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median EV-to-EBIT is 37.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current EV-to-EBIT is 45.71, which is 198% above median its own 10-year median of 15.33. 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 CHF177.24, compared to a current price of CHF484.45 — trading 173.3% above its estimated fair value. The current EV-to-EBIT is 45.71, which is 198% above median its 10-year median of 15.33 and 23% above the Semiconductors industry median of 37.17. Applied Materials' overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current EV-to-EBIT is 45.71 as of Jul. 11, 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 CHF484.45 is trading 173.3% above its estimated GF Value™ of CHF177.24.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for XSWX:AMAT:
EV-to-EBIT: 45.71 (198% above median its 10-year median of 15.33)
GF Value™: CHF177.24 vs. price of CHF484.45 (173.3% above fair value)
Industry Position: 23% above the Semiconductors median (#378 of 683)
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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