Applied MaterialsAMAT -6.16%85 ROC (Joel Greenblatt) % is 118.08% as of Apr. 2026, which is 9% above its 10-year median of 108.10. 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 1,027 Semiconductors companies, Applied Materials ranks better than 93.48% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Applied Materials's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 118.08%.
The historical rank and industry rank for Applied Materials's ROC (Joel Greenblatt) % or its related term are showing as below:
AMAT'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 85.59 Med: 108.1 Max: 176.13
Current: 102.21
During the past 13 years, Applied Materials's highest ROC (Joel Greenblatt) % was 176.13%. The lowest was 85.59%. And the median was 108.10%.
AMAT's ROC (Joel Greenblatt) % is ranked better than 93.48% of 1027
companies
in the Semiconductors industry
Industry Median: 8.19
vs AMAT: 102.21
Applied Materials's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Applied Materials ROC (Joel Greenblatt) % Related Terms
Applied Materials ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Applied Materials's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Applied Materials's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 118.08% mean?
Applied Materials (AMAT) has a ROC (Joel Greenblatt) % of 118.08% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Applied Materials and its competitors. This is near median its historical median of 108.10. Over the past decade, Applied Materials' ROC (Joel Greenblatt) % has ranged from 85.59 to 176.13. According to the industry distribution chart, Applied Materials ranks #67 out of 1027 companies in the Semiconductors industry, placing it in the top 6.5%.
Is Applied Materials' ROC (Joel Greenblatt) % too high?
Applied Materials' current ROC (Joel Greenblatt) % of 118.08% is near median its 10-year median of 108.10. Over the past 10 years, this metric has ranged from a low of 85.59 to a high of 176.13. The Semiconductors industry median ROC (Joel Greenblatt) % is 8.19. Applied Materials' value of 118.08% is 1341.8% above this industry median. Based on the distribution chart, Applied Materials ranks #67 out of 1027 companies in the Semiconductors industry, which is in the top quartile — a strong position 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' ROC (Joel Greenblatt) % compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #67 out of 1027 companies for ROC (Joel Greenblatt) %. This places Applied Materials in the top 7% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.19. Applied Materials' value of 118.08% is 1341.8% above this benchmark. Historically, Applied Materials' own ROC (Joel Greenblatt) % has ranged from 85.59 to 176.13 over the past decade. While the company's 10-year median is 108.10 vs. the industry median of 8.19, 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 ROC (Joel Greenblatt) % for a Semiconductors company?
The median ROC (Joel Greenblatt) % among Semiconductors companies is 8.19, based on 1,027 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current ROC (Joel Greenblatt) % of 118.08% is 1341.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median ROC (Joel Greenblatt) % is 8.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current ROC (Joel Greenblatt) % is 118.08%, which is near median its own 10-year median of 108.10. 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 ROC (Joel Greenblatt) % is 118.08%, which is near median its 10-year median of 108.10 and 1341.8% above the Semiconductors industry median of 8.19. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Applied Materials (AMAT), the current ROC (Joel Greenblatt) % is 118.08% as of Apr. 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:
ROC (Joel Greenblatt) %: 118.08% (near median its 10-year median of 108.10)
GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
Industry Position: 1341.8% above the Semiconductors median (#67 of 1027)
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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