Applied MaterialsCHIX:AP2D 89 PB Ratio is 21.32 as of Jun. 25, 2026, which is 201% above its 10-year median of 7.09. GuruFocus rates CHIX:AP2D with a GF Score™ of 89/100 and a GF Value™ of €202.82 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,000 Semiconductors companies, Applied Materials ranks worse than 92.6% on this metric.
Applied Materials Inc stock PB Ratio (=19.56) is close to 10-year high of 20.49.
The historical rank and industry rank for Applied Materials's PB Ratio or its related term are showing as below:
CHIX:AP2d'
s PB Ratio Range Over the Past 10 Years
Min: 3.96 Med: 7.09 Max: 20.49
Current: 19.56
During the past 13 years, Applied Materials's highest PB Ratio was 20.49. The lowest was 3.96. And the median was 7.09.
CHIX:AP2d's PB Ratio is ranked worse than 92.6% of 1000
companies
in the Semiconductors industry
Industry Median: 3.835
vs CHIX:AP2d: 19.56
During the past 12 months, Applied Materials's average Book Value Per Share Growth Rate was 27.50% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 21.20% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 18.30% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 15.70% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Applied Materials was 52.20% per year. The lowest was -1.50% per year. And the median was 15.00% per year.
Back to Basics: PB Ratio
Applied Materials (CHIX:AP2d) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Applied Materials PB Ratio Related Terms
Applied Materials PB Ratio Historical Data
* Premium members only.
The historical data trend for Applied Materials's PB Ratio 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.
For the Semiconductor Equipment & Materials subindustry, Applied Materials's PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's PB Ratio distribution charts can be found below:
* The bar in red indicates where Applied Materials's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Applied Materials (CHIX:AP2D) has a PB Ratio of 21.32 as of Jun. 25, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Applied Materials and its competitors. This is 201% above median its historical median of 7.09. Over the past decade, Applied Materials' PB Ratio has ranged from 3.96 to 20.49. According to the industry distribution chart, Applied Materials ranks #926 out of 1000 companies in the Semiconductors industry, placing it in the top 92.6%.
Is Applied Materials' PB Ratio too high?
Applied Materials' current PB Ratio of 21.32 is 201% above median its 10-year median of 7.09. Over the past 10 years, this metric has ranged from a low of 3.96 to a high of 20.49. The Semiconductors industry median PB Ratio is 3.84. Applied Materials' value of 21.32 is 455.9% above this industry median. Based on the distribution chart, Applied Materials ranks #926 out of 1000 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Applied Materials has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' PB Ratio compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #926 out of 1000 companies for PB Ratio. This places Applied Materials in the lower half of its industry. The industry median PB Ratio is 3.84. Applied Materials' value of 21.32 is 455.9% above this benchmark. Historically, Applied Materials' own PB Ratio has ranged from 3.96 to 20.49 over the past decade. While the company's 10-year median is 7.09 vs. the industry median of 3.84, 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 PB Ratio for a Semiconductors company?
The median PB Ratio among Semiconductors companies is 3.84, based on 1,000 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current PB Ratio of 21.32 is 455.9% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median PB Ratio is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current PB Ratio is 21.32, which is 201% above median its own 10-year median of 7.09. 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 (CHIX:AP2D) is currently considered Significantly Overvalued. The stock's GF Value™ is €202.82, compared to a current price of €549.00 — trading 170.7% above its estimated fair value. The current PB Ratio is 21.32, which is 201% above median its 10-year median of 7.09 and 455.9% above the Semiconductors industry median of 3.84. Applied Materials' overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Applied Materials (CHIX:AP2D), the current PB Ratio is 21.32 as of Jun. 25, 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 (CHIX:AP2D) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of €549.00 is trading 170.7% above its estimated GF Value™ of €202.82.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for CHIX:AP2D:
PB Ratio: 21.32 (201% above median its 10-year median of 7.09)
GF Value™: €202.82 vs. price of €549.00 (170.7% above fair value)
Industry Position: 455.9% above the Semiconductors median (#926 of 1000)
No single metric tells the full story. See the CHIX:AP2D 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.
89GF Score
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