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Applied MaterialsXSWX:AMAT 81 EV-to-OCF is 53.42 as of Jul. 17, 2026, which is 223% above its 10-year median of 16.56. GuruFocus rates XSWX:AMAT with a GF Score™ of 81/100 and a GF Value™ of CHF182.71 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,029 Semiconductors companies, Applied Materials ranks worse than 77.55% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Applied Materials's Enterprise Value is CHF339,525 Mil.
Applied Materials's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was CHF6,356 Mil. Therefore, Applied Materials's EV-to-OCF for today is 53.42.
The historical rank and industry rank for Applied Materials's EV-to-OCF or its related term are showing as below:
XSWX:AMAT'
s EV-to-OCF Range Over the Past 10 Years
Min: 8.24 Med: 16.56 Max: 62.54
Current: 55.6
During the past 13 years, the highest EV-to-OCF of Applied Materials was 62.54. The lowest was 8.24. And the median was 16.56.
XSWX:AMAT's EV-to-OCF is ranked worse than 77.55% of 1029
companies
in the Semiconductors industry
Industry Median: 15.47
vs XSWX:AMAT: 55.60
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Applied Materials's PE Ratio (TTM) for today is calculated as:
Applied Materials's share price for today is CHF462.85.
Applied Materials's Earnings per Share (Diluted) 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 CHF8.441.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Applied Materials EV-to-OCF Related Terms
Applied Materials EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Applied Materials's EV-to-OCF 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-OCF Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Applied Materials's EV-to-OCF falls into.
Applied Materials's current Enterprise Value is CHF339,525 Mil.
Applied Materials's Cash Flow from Operations 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 CHF6,356 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-OCF of 53.42 as of Jul. 17, 2026. This is 223% above median its historical median of 16.56. Over the past decade, Applied Materials' EV-to-OCF has ranged from 8.24 to 62.54. According to the industry distribution chart, Applied Materials ranks #798 out of 1029 companies in the Semiconductors industry, placing it in the top 77.6%.
Is Applied Materials' EV-to-OCF too high?
Applied Materials' current EV-to-OCF of 53.42 is 223% above median its 10-year median of 16.56. Over the past 10 years, this metric has ranged from a low of 8.24 to a high of 62.54. The Semiconductors industry median EV-to-OCF is 15.47. Applied Materials' value of 53.42 is 245.3% above this industry median. Based on the distribution chart, Applied Materials ranks #798 out of 1029 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Applied Materials has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' EV-to-OCF compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #798 out of 1029 companies for EV-to-OCF. This places Applied Materials in the lower half of its industry. The industry median EV-to-OCF is 15.47. Applied Materials' value of 53.42 is 245.3% above this benchmark. Historically, Applied Materials' own EV-to-OCF has ranged from 8.24 to 62.54 over the past decade. While the company's 10-year median is 16.56 vs. the industry median of 15.47, 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-OCF for a Semiconductors company?
The median EV-to-OCF among Semiconductors companies is 15.47, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current EV-to-OCF of 53.42 is 245.3% 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median EV-to-OCF is 15.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current EV-to-OCF is 53.42, which is 223% above median its own 10-year median of 16.56. 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 CHF182.71, compared to a current price of CHF462.85 — trading 153.3% above its estimated fair value. The current EV-to-OCF is 53.42, which is 223% above median its 10-year median of 16.56 and 245.3% above the Semiconductors industry median of 15.47. Applied Materials' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current EV-to-OCF is 53.42 as of Jul. 17, 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 CHF462.85 is trading 153.3% above its estimated GF Value™ of CHF182.71.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for XSWX:AMAT:
EV-to-OCF: 53.42 (223% above median its 10-year median of 16.56)
GF Value™: CHF182.71 vs. price of CHF462.85 (153.3% above fair value)
Industry Position: 245.3% above the Semiconductors median (#798 of 1029)
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.
81GF Score
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