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Applied Materials's Free Cash Flow per Share for the
three
months ended in Jul. 2026 was CHF2.35.
Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jul. 2026 was CHF5.56.
During the past 12 months, the average Free Cash Flow per Share Growth Rate of Applied Materials was -1.40% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 10.30% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 16.90% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was 21.80% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the FCF Growth Rate using Free Cash Flow per Share data.
The historical rank and industry rank for Applied Materials's Free Cash Flow per Share or its related term are showing as below:
XSWX:AMAT'
s 3-Year FCF Growth Rate Range Over the Past 10 Years
Min: -83.1 Med: 17.9 Max: 175.9
Current: 10.3
During the past 13 years, Applied Materials's highest 3-Year average Free Cash Flow per Share Growth Rate was 175.90% per year. The lowest was -83.10% per year. And the median was 17.90% per year.
XSWX:AMAT's 3-Year FCF Growth Rate is ranked better than 57.62% of 630
companies
in the Semiconductors industry
Industry Median: 3.4
vs XSWX:AMAT: 10.30
Applied Materials (XSWX:AMAT) Free Cash Flow per Share Explanation
Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.
In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.
This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is because research shows that five years is the length of the typical business cycle.
* 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.
Be Aware
Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.
Applied Materials Free Cash Flow per Share Related Terms
Applied Materials Free Cash Flow per Share Historical Data
* Premium members only.
The historical data trend for Applied Materials's Free Cash Flow per Share 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: Free Cash Flow per Share Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Price-to-Free-Cash-Flow distribution charts can be found below:
* The bar in red indicates where Applied Materials's Price-to-Free-Cash-Flow falls into.
Applied Materials Free Cash Flow per Share Calculation
Free Cashflow per Share is the amount of Free Cashflow per outstanding share of the company's stock.
Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.
Note: GuruFocus does not calculate Free Cash Flow Per Share when Capital Expenditure is 0.
Applied Materials's Free Cash Flow Per Share for the fiscal year that ended in Oct. 2025 is calculated as
Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jul. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF5.56
* 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.
What does a Free Cash Flow per Share of CHF5.56 mean?
Applied Materials (XSWX:AMAT) has a Free Cash Flow per Share of CHF5.56 as of Jul. 2026. Free cash flow per share represents the pre-share value of cash following operating and capital expenditures. View historical data on Applied Materials and its competitors. According to the industry distribution chart, Applied Materials ranks #267 out of 630 companies in the Semiconductors industry, placing it in the top 42.4%.
Is Applied Materials' Free Cash Flow per Share too high?
Applied Materials' current Free Cash Flow per Share is CHF5.56. Based on the distribution chart, Applied Materials ranks #267 out of 630 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Applied Materials has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Free Cash Flow per Share compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #267 out of 630 companies for Free Cash Flow per Share. This puts Applied Materials in the upper half of its industry. The industry median Free Cash Flow per Share is 3.40. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Free Cash Flow per Share for a Semiconductors company?
The median Free Cash Flow per Share among Semiconductors companies is 3.40, based on 630 companies in the industry. Companies in the top quartile (top 25%) have a Free Cash Flow per Share significantly above this median, while those in the bottom quartile fall well below. However, Free Cash Flow per Share 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 Free Cash Flow per Share mean?
A high Free Cash Flow per Share can signal that a stock is expensive relative to its fundamentals. Free cash flow per share represents the pre-share value of cash following operating and capital expenditures. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median Free Cash Flow per Share is 3.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Free Cash Flow per Share is CHF5.56. 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?
Applied Materials (XSWX:AMAT) has a current Free Cash Flow per Share of CHF5.56. The stock's GF Value™ is CHF203.10, compared to a current price of CHF358.15 — trading 76.3% above its estimated fair value. The current Free Cash Flow per Share is CHF5.56. Applied Materials' overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Free Cash Flow per Share calculated?
Free Cash Flow per Share is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current Free Cash Flow per Share is CHF5.56 as of Jul. 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 CHF358.15 is trading 76.3% above its estimated GF Value™ of CHF203.10.
Key valuation signals for XSWX:AMAT:
Free Cash Flow per Share: CHF5.56
GF Value™: CHF203.10 vs. price of CHF358.15 (76.3% above fair value)
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.
85GF Score
Get the complete analysis for XSWX:AMAT
Free Cash Flow per Share is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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