Applied MaterialsXSWX:AMAT +1.08%87 PEG Ratio is 4.06 as of Jun. 27, 2026, which is 408% above its 10-year median of 0.80. GuruFocus rates XSWX:AMAT with a GF Score™ of 87/100 and a GF Value™ of CHF178.31 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 329 Semiconductors companies, Applied Materials ranks worse than 51.37% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Applied Materials's PEG Ratio or its related term are showing as below:
XSWX:AMAT'
s PEG Ratio Range Over the Past 10 Years
Min: 0.13 Med: 0.8 Max: 5.45
Current: 3.94
During the past 13 years, Applied Materials's highest PEG Ratio was 5.45. The lowest was 0.13. And the median was 0.80.
XSWX:AMAT's PEG Ratio is ranked worse than 51.37% of 329
companies
in the Semiconductors industry
Industry Median: 3.96
vs XSWX:AMAT: 3.94
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Applied Materials (XSWX:AMAT) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Applied Materials PEG Ratio Related Terms
Applied Materials PEG Ratio Historical Data
* Premium members only.
The historical data trend for Applied Materials's PEG 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.
XSWX:AMAT vs LRCX, KLAC, TER: PEG Ratio Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Applied Materials's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Applied Materials (XSWX:AMAT) has a PEG Ratio of 4.06 as of Jun. 27, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Applied Materials and its competitors. This is 408% above median its historical median of 0.80. Over the past decade, Applied Materials' PEG Ratio has ranged from 0.13 to 5.45. According to the industry distribution chart, Applied Materials ranks #169 out of 329 companies in the Semiconductors industry, placing it in the top 51.4%.
Is Applied Materials' PEG Ratio too high?
Applied Materials' current PEG Ratio of 4.06 is 408% above median its 10-year median of 0.80. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 5.45. The Semiconductors industry median PEG Ratio is 3.96. Applied Materials' value of 4.06 is 2.5% above this industry median. Based on the distribution chart, Applied Materials ranks #169 out of 329 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Applied Materials has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' PEG Ratio compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #169 out of 329 companies for PEG Ratio. This places Applied Materials in the lower half of its industry. The industry median PEG Ratio is 3.96. Applied Materials' value of 4.06 is 2.5% above this benchmark. Historically, Applied Materials' own PEG Ratio has ranged from 0.13 to 5.45 over the past decade. While the company's 10-year median is 0.80 vs. the industry median of 3.96, 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 PEG Ratio for a Semiconductors company?
The median PEG Ratio among Semiconductors companies is 3.96, based on 329 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current PEG Ratio of 4.06 is 2.5% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median PEG Ratio is 3.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current PEG Ratio is 4.06, which is 408% above median its own 10-year median of 0.80. 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 CHF178.31, compared to a current price of CHF513.28 — trading 187.9% above its estimated fair value. The current PEG Ratio is 4.06, which is 408% above median its 10-year median of 0.80 and 2.5% above the Semiconductors industry median of 3.96. Applied Materials' overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current PEG Ratio is 4.06 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 (XSWX:AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of CHF513.28 is trading 187.9% above its estimated GF Value™ of CHF178.31.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for XSWX:AMAT:
PEG Ratio: 4.06 (408% above median its 10-year median of 0.80)
GF Value™: CHF178.31 vs. price of CHF513.28 (187.9% above fair value)
Industry Position: 2.5% above the Semiconductors median (#169 of 329)
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.
87GF Score
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