AMAT (Applied Materials) GF Value Rank: 1 (As of Jun. 27, 2026) — 80% Below Median


AMAT Applied Materials Inc AMAT
85 GF Score
Price $626.84
GF Value $217.76
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Applied Materials GF Value Rank?

Applied Materials AMAT -6.16% 85 GF Value Rank is 1 as of Jun. 27, 2026, which is 80% below its 10-year median of 5.00. 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.

Applied Materials has the GF Value Rank of 1.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Applied Materials GF Value Rank Related Terms

AMAT vs LRCX, KLAC, TER: GF Value Rank Comparison

For the Semiconductor Equipment & Materials subindustry, Applied Materials's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Applied Materials's GF Value Rank falls into.


AMAT
85GF Score
Applied Materials Inc AMAT
GF Value Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about GF Value Rank →
What does a GF Value Rank of 1 mean?
Applied Materials (AMAT) has a GF Value Rank of 1 as of Jun. 27, 2026. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Applied Materials and its competitors. This is 80% below median its historical median of 5.00. Over the past decade, Applied Materials' GF Value Rank has ranged from 1.00 to 10.00.
Is Applied Materials' GF Value Rank too high?
Applied Materials' current GF Value Rank of 1 is 80% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 10.00. 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' GF Value Rank compare to LRCX and KLAC?
Applied Materials' GF Value Rank of 1 can be compared against companies in the Semiconductors industry. Historically, Applied Materials' own GF Value Rank has ranged from 1.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good GF Value Rank for a Semiconductors company?
A good GF Value Rank depends on the Semiconductors industry context. However, GF Value Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high GF Value Rank mean?
A high GF Value Rank can signal that a stock is expensive relative to its fundamentals. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Applied Materials and its competitors. Applied Materials's current GF Value Rank is 1, which is 80% below median its own 10-year median of 5.00. 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 GF Value Rank is 1, which is 80% below median its 10-year median of 5.00. 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 GF Value Rank calculated?
GF Value Rank is calculated from a company's financial statements. For Applied Materials (AMAT), the current GF Value Rank is 1 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:

  • GF Value Rank: 1 (80% below median its 10-year median of 5.00)
  • GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
  • GF Score™: 85/100 with 6 warning signs

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 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 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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GF Value Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$626.84
Price
$217.76
GF Value