Applied Materials (XSWX:AMAT) 1-Year Sharpe Ratio: 1.06 (As of Jul. 11, 2026)


XSWX:AMAT Applied Materials Inc XSWX:AMAT
86 GF Score
Price CHF484.45
GF Value CHF177.24
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Applied Materials 1-Year Sharpe Ratio?

Applied Materials XSWX:AMAT -0.54% 86 1-Year Sharpe Ratio is 1.06 as of Jul. 11, 2026. GuruFocus rates XSWX:AMAT with a GF Score™ of 86/100 and a GF Value™ of CHF177.24 (Significantly Overvalued). The stock has 6 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-11), Applied Materials's 1-Year Sharpe Ratio is 1.06.

Applied Materials  (XSWX:AMAT) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Applied Materials 1-Year Sharpe Ratio Related Terms

XSWX:AMAT vs LRCX, KLAC, TER: 1-Year Sharpe Ratio Comparison

For the Semiconductor Equipment & Materials subindustry, Applied Materials's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Applied Materials's 1-Year Sharpe Ratio falls into.


XSWX:AMAT
86GF Score
Applied Materials Inc XSWX:AMAT
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Applied Materials 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 1.06 mean?
Applied Materials (XSWX:AMAT) has a 1-Year Sharpe Ratio of 1.06 as of Jul. 11, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Applied Materials and its competitors.
Is Applied Materials' 1-Year Sharpe Ratio too high?
Applied Materials' current 1-Year Sharpe Ratio is 1.06. Overall, Applied Materials has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' 1-Year Sharpe Ratio compare to LRCX and KLAC?
Applied Materials' 1-Year Sharpe Ratio of 1.06 can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Semiconductors company?
A good 1-Year Sharpe Ratio depends on the Semiconductors industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Applied Materials and its competitors. Applied Materials's current 1-Year Sharpe Ratio is 1.06. 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 (XSWX:AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF177.24, compared to a current price of CHF484.45 — trading 173.3% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.06. Applied Materials' overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current 1-Year Sharpe Ratio is 1.06 as of Jul. 11, 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 (XSWX:AMAT) Overvalued in 2026?

Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued. The current stock price of CHF484.45 is trading 173.3% above its estimated GF Value™ of CHF177.24. GuruFocus considers Applied Materials to be Significantly Overvalued.

Key valuation signals for XSWX:AMAT:

  • 1-Year Sharpe Ratio: 1.06
  • GF Value™: CHF177.24 vs. price of CHF484.45 (173.3% above fair value)
  • GF Score™: 86/100 with 6 warning signs

No single metric tells the full story. See the XSWX: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.
86GF Score

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

CHF484.45
Price
CHF177.24
GF Value