Applied MaterialsAMAT -6.16%85 5-Year Yield-on-Cost % is 0.65 as of Jun. 27, 2026, which is 64% below its 10-year median of 1.79. 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 531 Semiconductors companies, Applied Materials ranks worse than 62.15% on this metric.
Applied Materials's yield on cost for the quarter that ended in Apr. 2026 was 0.65.
The historical rank and industry rank for Applied Materials's 5-Year Yield-on-Cost % or its related term are showing as below:
AMAT'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.57 Med: 1.79 Max: 4.42
Current: 0.65
During the past 13 years, Applied Materials's highest Yield on Cost was 4.42. The lowest was 0.57. And the median was 1.79.
AMAT's 5-Year Yield-on-Cost % is ranked worse than 62.15% of 531
companies
in the Semiconductors industry
Industry Median: 0.98
vs AMAT: 0.65
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Applied Materials 5-Year Yield-on-Cost % Related Terms
AMAT vs LRCX, KLAC, TER: 5-Year Yield-on-Cost % Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Applied Materials's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Applied Materials (AMAT) has a 5-Year Yield-on-Cost % of 0.65 as of Jun. 27, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Applied Materials and its competitors. This is 64% below median its historical median of 1.79. Over the past decade, Applied Materials' 5-Year Yield-on-Cost % has ranged from 0.57 to 4.42. According to the industry distribution chart, Applied Materials ranks #330 out of 531 companies in the Semiconductors industry, placing it in the top 62.1%.
Is Applied Materials' 5-Year Yield-on-Cost % too high?
Applied Materials' current 5-Year Yield-on-Cost % of 0.65 is 64% below median its 10-year median of 1.79. Over the past 10 years, this metric has ranged from a low of 0.57 to a high of 4.42. The Semiconductors industry median 5-Year Yield-on-Cost % is 0.98. Applied Materials' value of 0.65 is 33.7% below this industry median. Based on the distribution chart, Applied Materials ranks #330 out of 531 companies in the Semiconductors industry, which is below the industry midpoint. 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' 5-Year Yield-on-Cost % compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #330 out of 531 companies for 5-Year Yield-on-Cost %. This places Applied Materials in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 0.98. Applied Materials' value of 0.65 is 33.7% below this benchmark. Historically, Applied Materials' own 5-Year Yield-on-Cost % has ranged from 0.57 to 4.42 over the past decade. While the company's 10-year median is 1.79 vs. the industry median of 0.98, Applied Materials has consistently been below 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 5-Year Yield-on-Cost % for a Semiconductors company?
The median 5-Year Yield-on-Cost % among Semiconductors companies is 0.98, based on 531 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current 5-Year Yield-on-Cost % of 0.65 is 33.7% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median 5-Year Yield-on-Cost % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current 5-Year Yield-on-Cost % is 0.65, which is 64% below median its own 10-year median of 1.79. 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 5-Year Yield-on-Cost % is 0.65, which is 64% below median its 10-year median of 1.79 and 33.7% below the Semiconductors industry median of 0.98. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Applied Materials (AMAT), the current 5-Year Yield-on-Cost % is 0.65 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:
5-Year Yield-on-Cost %: 0.65 (64% below median its 10-year median of 1.79)
GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
Industry Position: 33.7% below the Semiconductors median (#330 of 531)
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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