Applied Materials (XTER:AP2) ROCE %: 43.17% (As of Apr. 2026)


XTER:AP2 Applied Materials Inc XTER:AP2
81 GF Score
Price €516.10
GF Value €190.67
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Applied Materials ROCE %?

Applied Materials XTER:AP2 +1.00% 81 ROCE % is 43.17% as of Apr. 2026. GuruFocus rates XTER:AP2 with a GF Score™ of 81/100 and a GF Value™ of €190.67 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Applied Materials's annualized ROCE % for the quarter that ended in Apr. 2026 was 43.17%.

Applied Materials  (XTER:AP2) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Applied Materials ROCE % Related Terms

Applied Materials ROCE % Historical Data

* Premium members only.

The historical data trend for Applied Materials's ROCE % 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.

Applied Materials ROCE % Chart

Applied Materials Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.75 43.61 36.08 33.57 34.06

Applied Materials Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.79 39.72 34.28 32.80 43.17
XTER:AP2
81GF Score
Applied Materials Inc XTER:AP2
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Applied Materials ROCE % Calculation

Applied Materials's annualized ROCE % for the fiscal year that ended in Oct. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Oct. 2025 )  (A: Oct. 2024 )(A: Oct. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Oct. 2025 )  (A: Oct. 2024 )(A: Oct. 2025 )
=8194.86/( ( (31587.462 - 7773.624) + (31180.841 - 6871.141) )/ 2 )
=8194.86/( (23813.838+24309.7)/ 2 )
=8194.86/24061.769
=34.06 %

Applied Materials's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=11265.48/( ( (32035.044 - 6597.803) + (34444.53 - 7693.29) )/ 2 )
=11265.48/( ( 25437.241 + 26751.24 )/ 2 )
=11265.48/26094.2405
=43.17 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 43.17% mean?
Applied Materials (XTER:AP2) has a ROCE % of 43.17% as of Apr. 2026.
Is Applied Materials' ROCE % too high?
Applied Materials' current ROCE % is 43.17%. The Semiconductors industry median ROCE % is 4.81. Applied Materials' value of 43.17% is 798.4% above this industry median. Overall, Applied Materials has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' ROCE % compare to LRCX and KLAC?
Applied Materials' ROCE % of 43.17% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.81. Applied Materials' value of 43.17% is 798.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Semiconductors company?
The median ROCE % among Semiconductors companies is 4.81, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current ROCE % of 43.17% is 798.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current ROCE % is 43.17%. 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 (XTER:AP2) is currently considered Significantly Overvalued. The stock's GF Value™ is €190.67, compared to a current price of €516.10 — trading 170.7% above its estimated fair value. The current ROCE % is 43.17% and 798.4% above the Semiconductors industry median of 4.81. Applied Materials' overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Applied Materials (XTER:AP2), the current ROCE % is 43.17% 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 (XTER:AP2) Overvalued in 2026?

Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued. The current stock price of €516.10 is trading 170.7% above its estimated GF Value™ of €190.67. GuruFocus considers Applied Materials to be Significantly Overvalued.

Key valuation signals for XTER:AP2:

  • ROCE %: 43.17%
  • GF Value™: €190.67 vs. price of €516.10 (170.7% above fair value)
  • GF Score™: 81/100 with 6 warning signs
  • Industry Position: 798.4% above the Semiconductors median

No single metric tells the full story. See the XTER:AP2 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.
81GF Score

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

€516.10
Price
€190.67
GF Value