Applied MaterialsAMAT -6.16%85 PS Ratio is 17.27 as of Jun. 27, 2026, which is 331% above its 10-year median of 4.01. 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 1,021 Semiconductors companies, Applied Materials ranks worse than 82.57% on this metric.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Applied Materials's share price is $626.84.
Applied Materials's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2026 was $36.29. Hence, Applied Materials's PS Ratio for today is 17.27.
Warning Sign:
Applied Materials Inc stock PS Ratio (=17.27) is close to 10-year high of 17.27.
The historical rank and industry rank for Applied Materials's PS Ratio or its related term are showing as below:
AMAT'
s PS Ratio Range Over the Past 10 Years
Min: 1.86 Med: 4.01 Max: 17.27
Current: 17.27
During the past 13 years, Applied Materials's highest PS Ratio was 17.27. The lowest was 1.86. And the median was 4.01.
AMAT's PS Ratio is ranked worse than 82.57% of 1021
companies
in the Semiconductors industry
Industry Median: 4.54
vs AMAT: 17.27
Applied Materials Inc has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Applied Materials was 6.40% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 6.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 12.20% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 16.20% per year.
During the past 13 years, Applied Materials's highest 3-Year average Revenue per Share Growth Rate was 60.40% per year. The lowest was -21.40% per year. And the median was 14.20% per year.
Back to Basics: PS Ratio
Applied Materials (NAS:AMAT) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Applied Materials PS Ratio Related Terms
Applied Materials PS Ratio Historical Data
* Premium members only.
The historical data trend for Applied Materials's PS 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 PS Ratio, along with its competitors' market caps and PS 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 PS Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's PS Ratio distribution charts can be found below:
* The bar in red indicates where Applied Materials's PS Ratio falls into.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Applied Materials's Share Price of today is $626.84. Applied Materials's Revenue per Share 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 $36.29.
* 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:
Applied Materials (AMAT) has a PS Ratio of 17.27 as of Jun. 27, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Applied Materials and its competitors. This is 331% above median its historical median of 4.01. Over the past decade, Applied Materials' PS Ratio has ranged from 1.86 to 17.27. According to the industry distribution chart, Applied Materials ranks #843 out of 1021 companies in the Semiconductors industry, placing it in the top 82.6%.
Is Applied Materials' PS Ratio too high?
Applied Materials' current PS Ratio of 17.27 is 331% above median its 10-year median of 4.01. Over the past 10 years, this metric has ranged from a low of 1.86 to a high of 17.27. The Semiconductors industry median PS Ratio is 4.54. Applied Materials' value of 17.27 is 280.4% above this industry median. Based on the distribution chart, Applied Materials ranks #843 out of 1021 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. 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' PS Ratio compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #843 out of 1021 companies for PS Ratio. This places Applied Materials in the lower half of its industry. The industry median PS Ratio is 4.54. Applied Materials' value of 17.27 is 280.4% above this benchmark. Historically, Applied Materials' own PS Ratio has ranged from 1.86 to 17.27 over the past decade. While the company's 10-year median is 4.01 vs. the industry median of 4.54, 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 PS Ratio for a Semiconductors company?
The median PS Ratio among Semiconductors companies is 4.54, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current PS Ratio of 17.27 is 280.4% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median PS Ratio is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current PS Ratio is 17.27, which is 331% above median its own 10-year median of 4.01. 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 PS Ratio is 17.27, which is 331% above median its 10-year median of 4.01 and 280.4% above the Semiconductors industry median of 4.54. 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 PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Applied Materials (AMAT), the current PS Ratio is 17.27 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:
PS Ratio: 17.27 (331% above median its 10-year median of 4.01)
GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
Industry Position: 280.4% above the Semiconductors median (#843 of 1021)
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
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