Applied MaterialsAMAT -6.16%85 Peter Lynch Fair Value is $115.02 as of Jun. 27, 2026, which is 14838% above its 10-year median of 0.77. 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. Among 207 Semiconductors companies, Applied Materials ranks worse than 74.4% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, Applied Materials's PEG is 1. Applied Materials's 5-Year TTM EBITDA Growth Rate is 11.63.
Applied Materials's EPS without NRI for the trailing twelve months (TTM) ended in Apr. 2026 was $9.89. Therefore, the Peter Lynch Fair Value for today is $115.02.
As of today (2026-06-27), Applied Materials's share price is $626.84. Applied Materials's Peter Lynch fair value is $115.02. Therefore, Applied Materials's Price to Peter Lynch Fair Value Ratio for today is 5.45.
The historical rank and industry rank for Applied Materials's Peter Lynch Fair Value or its related term are showing as below:
AMAT'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.31 Med: 0.77 Max: 5.45
Current: 5.45
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Applied Materials was 5.45. The lowest was 0.31. And the median was 0.77.
AMAT's Price-to-Peter-Lynch-Fair-Value is ranked worse than 74.4% of 207
companies
in the Semiconductors industry
Industry Median: 2.87
vs AMAT: 5.45
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
Applied Materials (NAS:AMAT) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 11.63 instead of 15 in this case.
Applied Materials's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
626.84
/
115.02
=
5.45
* 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.
Applied Materials Peter Lynch Fair Value Related Terms
Applied Materials Peter Lynch Fair Value Historical Data
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The historical data trend for Applied Materials's Peter Lynch Fair Value 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.
AMAT vs LRCX, KLAC, TER: Peter Lynch Fair Value Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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-Peter-Lynch-Fair-Value vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where Applied Materials's Price-to-Peter-Lynch-Fair-Value falls into.
Applied Materials's EPS without NRI for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.89.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of $115.02 mean?
Applied Materials (AMAT) has a Peter Lynch Fair Value of $115.02 as of Jun. 27, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Applied Materials and its competitors. This is 14838% above median its historical median of 0.77. Over the past decade, Applied Materials' Peter Lynch Fair Value has ranged from 0.31 to 5.45. According to the industry distribution chart, Applied Materials ranks #154 out of 207 companies in the Semiconductors industry, placing it in the top 74.4%.
Is Applied Materials' Peter Lynch Fair Value too high?
Applied Materials' current Peter Lynch Fair Value of $115.02 is 14838% above median its 10-year median of 0.77. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 5.45. The Semiconductors industry median Peter Lynch Fair Value is 2.87. Applied Materials' value of $115.02 is 3907.7% above this industry median. Based on the distribution chart, Applied Materials ranks #154 out of 207 companies in the Semiconductors industry, which is below the industry midpoint. 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' Peter Lynch Fair Value compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #154 out of 207 companies for Peter Lynch Fair Value. This places Applied Materials in the lower half of its industry. The industry median Peter Lynch Fair Value is 2.87. Applied Materials' value of $115.02 is 3907.7% above this benchmark. Historically, Applied Materials' own Peter Lynch Fair Value has ranged from 0.31 to 5.45 over the past decade. While the company's 10-year median is 0.77 vs. the industry median of 2.87, 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 Peter Lynch Fair Value for a Semiconductors company?
The median Peter Lynch Fair Value among Semiconductors companies is 2.87, based on 207 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current Peter Lynch Fair Value of $115.02 is 3907.7% 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 Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median Peter Lynch Fair Value is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Peter Lynch Fair Value is $115.02, which is 14838% above median its own 10-year median of 0.77. 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 Peter Lynch Fair Value is $115.02, which is 14838% above median its 10-year median of 0.77 and 3907.7% above the Semiconductors industry median of 2.87. 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 Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For Applied Materials (AMAT), the current Peter Lynch Fair Value is $115.02 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:
Peter Lynch Fair Value: $115.02 (14838% above median its 10-year median of 0.77)
GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
Industry Position: 3907.7% above the Semiconductors median (#154 of 207)
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 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 AMAT
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