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Applied MaterialsXSWX:AMAT +6.73%81 Shiller PE Ratio is 83.80 as of Aug. 04, 2026, which is 124% above its 10-year median of 37.44. GuruFocus rates XSWX:AMAT with a GF Score™ of 81/100 and a GF Value™ of CHF178.31 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 546 Semiconductors companies, Applied Materials ranks worse than 70.88% on this metric.
The historical rank and industry rank for Applied Materials's Shiller PE Ratio or its related term are showing as below:
XSWX:AMAT'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 22.35 Med: 37.44 Max: 91.91
Current: 76.02
During the past years, Applied Materials's highest Shiller PE Ratio was 91.91. The lowest was 22.35. And the median was 37.44.
XSWX:AMAT's Shiller PE Ratio is ranked worse than 70.88% of 546
companies
in the Semiconductors industry
Industry Median: 39.75
vs XSWX:AMAT: 76.02
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Applied Materials's adjusted earnings per share data for the three months ended in Apr. 2026 was CHF2.764. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is CHF5.24 for the trailing ten years ended in Apr. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Applied Materials (XSWX:AMAT) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Applied Materials Shiller PE Ratio Related Terms
Applied Materials Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for Applied Materials's Shiller PE 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.
XSWX:AMAT vs LRCX, KLAC, TER: Shiller PE Ratio Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Applied Materials's Shiller PE Ratio falls into.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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's E10 for the quarter that ended in Apr. 2026 is calculated as:
For example, Applied Materials's adjusted earnings per share data for the three months ended in Apr. 2026 was:
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Applied Materials (XSWX:AMAT) has a Shiller PE Ratio of 83.80 as of Aug. 04, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Applied Materials and its competitors. This is 124% above median its historical median of 37.44. Over the past decade, Applied Materials' Shiller PE Ratio has ranged from 22.35 to 91.91. According to the industry distribution chart, Applied Materials ranks #387 out of 546 companies in the Semiconductors industry, placing it in the top 70.9%.
Is Applied Materials' Shiller PE Ratio too high?
Applied Materials' current Shiller PE Ratio of 83.80 is 124% above median its 10-year median of 37.44. Over the past 10 years, this metric has ranged from a low of 22.35 to a high of 91.91. The Semiconductors industry median Shiller PE Ratio is 39.75. Applied Materials' value of 83.80 is 110.8% above this industry median. Based on the distribution chart, Applied Materials ranks #387 out of 546 companies in the Semiconductors industry, which is below the industry midpoint. 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' Shiller PE Ratio compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #387 out of 546 companies for Shiller PE Ratio. This places Applied Materials in the lower half of its industry. The industry median Shiller PE Ratio is 39.75. Applied Materials' value of 83.80 is 110.8% above this benchmark. Historically, Applied Materials' own Shiller PE Ratio has ranged from 22.35 to 91.91 over the past decade. While the company's 10-year median is 37.44 vs. the industry median of 39.75, 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 Shiller PE Ratio for a Semiconductors company?
The median Shiller PE Ratio among Semiconductors companies is 39.75, based on 546 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current Shiller PE Ratio of 83.80 is 110.8% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median Shiller PE Ratio is 39.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Shiller PE Ratio is 83.80, which is 124% above median its own 10-year median of 37.44. 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 CHF178.31, compared to a current price of CHF439.10 — trading 146.3% above its estimated fair value. The current Shiller PE Ratio is 83.80, which is 124% above median its 10-year median of 37.44 and 110.8% above the Semiconductors industry median of 39.75. Applied Materials' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current Shiller PE Ratio is 83.80 as of Aug. 04, 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 CHF439.10 is trading 146.3% above its estimated GF Value™ of CHF178.31.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for XSWX:AMAT:
Shiller PE Ratio: 83.80 (124% above median its 10-year median of 37.44)
GF Value™: CHF178.31 vs. price of CHF439.10 (146.3% above fair value)
Industry Position: 110.8% above the Semiconductors median (#387 of 546)
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 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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