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AMAT (Applied Materials) PE Ratio : 19.67 (As of Dec. 14, 2024)


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What is Applied Materials PE Ratio?

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-12-14), Applied Materials's share price is $169.35. Applied Materials's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was $8.61. Therefore, Applied Materials's PE Ratio for today is 19.67.

During the past 13 years, Applied Materials's highest PE Ratio was 33.86. The lowest was 9.75. And the median was 18.53.

Applied Materials's EPS (Diluted) for the three months ended in Oct. 2024 was $2.09. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was $8.61.

As of today (2024-12-14), Applied Materials's share price is $169.35. Applied Materials's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was $8.66. Therefore, Applied Materials's PE Ratio without NRI ratio for today is 19.56.

During the past 13 years, Applied Materials's highest PE Ratio without NRI was 30.83. The lowest was 7.08. And the median was 17.35.

Applied Materials's EPS without NRI for the three months ended in Oct. 2024 was $2.32. Its EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was $8.66.

During the past 12 months, Applied Materials's average EPS without NRI Growth Rate was 7.50% per year. During the past 3 years, the average EPS without NRI Growth Rate was 8.10% per year. During the past 5 years, the average EPS without NRI Growth Rate was 23.30% per year. During the past 10 years, the average EPS without NRI Growth Rate was 24.40% per year.

During the past 13 years, Applied Materials's highest 3-Year average EPS without NRI Growth Rate was 150.20% per year. The lowest was -61.50% per year. And the median was 22.10% per year.

Applied Materials's EPS (Basic) for the three months ended in Oct. 2024 was $2.11. Its EPS (Basic) for the trailing twelve months (TTM) ended in Oct. 2024 was $8.68.

Back to Basics: PE Ratio


Applied Materials PE Ratio Historical Data

The historical data trend for Applied Materials's PE 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.

* Premium members only.

Applied Materials PE Ratio Chart

Applied Materials Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.11 21.35 11.87 16.32 21.09

Applied Materials Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.32 19.33 22.83 23.84 21.09

Competitive Comparison of Applied Materials's PE Ratio

For the Semiconductor Equipment & Materials subindustry, Applied Materials's PE Ratio, along with its competitors' market caps and PE 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's PE Ratio Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's PE Ratio distribution charts can be found below:

* The bar in red indicates where Applied Materials's PE Ratio falls into.



Applied Materials PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Applied Materials's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=169.35/8.610
=19.67

Applied Materials's Share Price of today is $169.35.
Applied Materials's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $8.61.


* 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:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Applied Materials  (NAS:AMAT) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Applied Materials PE Ratio Related Terms

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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, or WFE, manufacturer in the world. Applied Materials has a broad portfolio spanning nearly every corner of the WFE ecosystem. Specifically, Applied Materials holds a market share leadership position 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.
Executives
Thomas J Iannotti director C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Prabu G. Raja officer: SVP, Semi. Products Group C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052
Gary E Dickerson director, officer: President and CEO
Teri A. Little officer: SVP, CLO ONE TECHNOLOGY DRIVE, MILPITAS CA 95035
Brice Hill officer: SVP, CFO 2100 LOGIC DRIVE, SAN JOSE CA 95124
Omkaram Nalamasu officer: Senior VP, CTO C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Timothy M Deane officer: GVP, Applied Global Services C/O APPLIED MATERIALS, INC., 3050 BOWERS AVE, PO BOX 58039, SANTA CLARA CA 95052
Xun Chen director 35 DORY RD., GLOUCESTER MA 01930
Kevin P March director 12500 TI BLVD, DALLAS TX 75243
Jeff Bodner officer: CVP, Corp. Controller & CAO C/O ESS TECH INC, 26440 SW PARKWAY AVE BLDG. 83, WILSONVILLE CA 97070
Daniel Durn officer: Senior VP C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Ginetto Addiego officer: SVP, Engineering 4000 NORTH FIRST STREET, SAN JOSE CA 95134
Rani Borkar director C/O APPLIED MATERIALS, INC., 3050 BOWERS AVE, PO BOX 58039, SANTA CLARA CA 95052
Alexander Karsner director C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Stephen R Forrest director C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039