AMAT (Applied Materials) Margin of Safety % (DCF Dividends Based): -185.02% (As of Jun. 27, 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 Margin of Safety % (DCF Dividends Based)?

Applied Materials AMAT -6.16% 85 Margin of Safety % (DCF Dividends Based) is -185.02% as of Jun. 27, 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.

Margin of Safety % (DCF Dividends Based) = (Intrinsic Value: DCF (Dividends Based) - Current Price) / Intrinsic Value: DCF (Dividends Based).

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history with more than 5 years. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, the data will not be stored into our database.

As of today (2026-06-27), Applied Materials's Predictability Rank is 4.5-Stars. Applied Materials's intrinsic value calculated from the Discounted Dividend model is $309.06 and current share price is $626.84. Consequently,

Applied Materials's Margin of Safety % (DCF Dividends Based) using Discounted Dividend model is -185.02%.

AMAT vs LRCX, KLAC, TER: Margin of Safety % (DCF Dividends Based) Comparison

For the Semiconductor Equipment & Materials subindustry, Applied Materials's Margin of Safety % (DCF Dividends Based), along with its competitors' market caps and Margin of Safety % (DCF Dividends Based) 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 Margin of Safety % (DCF Dividends Based) vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's Margin of Safety % (DCF Dividends Based) distribution charts can be found below:

* The bar in red indicates where Applied Materials's Margin of Safety % (DCF Dividends Based) falls into.


AMAT
85GF Score
Applied Materials Inc AMAT
Margin of Safety % (DCF Dividends Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Applied Materials Margin of Safety % (DCF Dividends Based) Calculation

Applied Materials's Margin of Safety % (DCF Dividends Based) for today is calculated as

Margin of Safety % (DCF Dividends Based)=(Intrinsic Value: DCF (Dividends Based)-Current Price)/Intrinsic Value: DCF (Dividends Based)
=(219.93-626.84)/219.93
=-185.02 %

* 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.

The intrinsic value is calculated from the Discounted Dividend model with default parameters.

What does a Margin of Safety % (DCF Dividends Based) of -185.02% mean?
Applied Materials (AMAT) has a Margin of Safety % (DCF Dividends Based) of -185.02% as of Jun. 27, 2026. Margin of Safety % (DCF Dividends Based) is the percent difference between the current price and the intrinsic DCF Dividends price. View historical data on Applied Materials.
Is Applied Materials' Margin of Safety % (DCF Dividends Based) too high?
Applied Materials' current Margin of Safety % (DCF Dividends Based) is -185.02%. 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' Margin of Safety % (DCF Dividends Based) compare to LRCX and KLAC?
Applied Materials' Margin of Safety % (DCF Dividends Based) of -185.02% 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 Margin of Safety % (DCF Dividends Based) for a Semiconductors company?
A good Margin of Safety % (DCF Dividends Based) depends on the Semiconductors industry context. However, Margin of Safety % (DCF Dividends Based) 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 Margin of Safety % (DCF Dividends Based) mean?
A high Margin of Safety % (DCF Dividends Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Dividends Based) is the percent difference between the current price and the intrinsic DCF Dividends price. View historical data on Applied Materials. Applied Materials's current Margin of Safety % (DCF Dividends Based) is -185.02%. 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 Margin of Safety % (DCF Dividends Based) is -185.02%. 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 Margin of Safety % (DCF Dividends Based) calculated?
Margin of Safety % (DCF Dividends Based) is calculated from a company's financial statements. For Applied Materials (AMAT), the current Margin of Safety % (DCF Dividends Based) is -185.02% as of Jun. 27, 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:

  • Margin of Safety % (DCF Dividends Based): -185.02%
  • 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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Margin of Safety % (DCF Dividends Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$626.84
Price
$217.76
GF Value