Last Price$152.1(3.8%)
Market Cap$127.9B
DCF value
$156.9
Undervalued (DCF value)
3.1%
Discount Rate
10.6%
Long-Term Growth Rate
4.0%
Stock quality
7/10
Great
AMAT DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Oct'20 Actual | Oct'21 Actual | Oct'22 Actual | Oct'23 Actual | Oct'24 Actual | Oct'25 Estimate | Oct'26 Estimate | Oct'27 Estimate | Oct'28 Estimate | Oct'29 Estimate | Oct'30 Estimate | Oct'31 Estimate | Oct'32 Estimate | Oct'33 Estimate | Oct'34 Estimate | Oct'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 17,202.0 17.8% | 23,063.0 34.1% | 25,785.0 11.8% | 26,517.0 2.8% | 27,176.0 2.5% | 29,174.7 7.4% | 31,435.4 7.7% | 32,853.3 4.5% | 35,805.0 9.0% | 38,766.9 8.3% | 41,697.8 7.6% | 44,553.4 6.8% | 47,287.3 6.1% | 49,852.2 5.4% | 52,201.3 4.7% | 54,289.3 4.0% |
% margin | 4,365.0 25.4% | 6,889.0 29.9% | 7,788.0 30.2% | 7,654.0 28.9% | 7,867.0 28.9% | 8,471.9 29.0% | 9,128.4 29.0% | 9,540.2 29.0% | 10,397.3 29.0% | 11,257.4 29.0% | 12,108.5 29.0% | 12,937.7 29.0% | 13,731.6 29.0% | 14,476.4 29.0% | 15,158.6 29.0% | 15,764.9 29.0% |
NOPAT % effective tax rate | 3,791.9 22.0% | 5,990.6 26.0% | 6,687.3 25.9% | 6,800.9 25.6% | 6,926.1 25.5% | 7,458.7 25.6% | 8,036.7 25.6% | 8,399.2 25.6% | 9,153.8 25.6% | 9,911.0 25.6% | 10,660.3 25.6% | 11,390.3 25.6% | 12,089.3 25.6% | 12,745.0 25.6% | 13,345.6 25.6% | 13,879.4 25.6% |
% of revenue | 376.0 2.2% | 394.0 1.7% | 444.0 1.7% | 515.0 1.9% | 392.0 1.4% | 496.6 1.7% | 535.1 1.7% | 559.2 1.7% | 609.5 1.7% | 659.9 1.7% | 709.8 1.7% | 758.4 1.7% | 804.9 1.7% | 848.6 1.7% | 888.6 1.7% | 924.1 1.7% |
% of revenue | (422.0) (2.5%) | (668.0) (2.9%) | (787.0) (3.1%) | (1,106.0) (4.2%) | (1,190.0) (4.4%) | (1,128.3) (3.9%) | (1,215.7) (3.9%) | (1,270.5) (3.9%) | (1,384.7) (3.9%) | (1,499.2) (3.9%) | (1,612.6) (3.9%) | (1,723.0) (3.9%) | (1,828.7) (3.9%) | (1,927.9) (3.9%) | (2,018.8) (3.9%) | (2,099.5) (3.9%) |
% of revenue | (638.0) (3.7%) | (1,344.0) (5.8%) | (1,792.0) (6.9%) | 775.0 2.9% | 1,117.0 4.1% | 8.1 0.0% | 8.7 0.0% | 9.1 0.0% | 9.9 0.0% | 10.7 0.0% | 11.6 0.0% | 12.3 0.0% | 13.1 0.0% | 13.8 0.0% | 14.5 0.0% | 15.0 0.0% |
Free Cash Flow to Firm (FCFF) % of revenue | 3,107.9 18.1% | 4,372.6 19.0% | 4,552.3 17.7% | 6,984.9 26.3% | 7,245.1 26.7% | 6,835.1 23.4% | 7,364.7 23.4% | 7,696.9 23.4% | 8,388.5 23.4% | 9,082.4 23.4% | 9,769.0 23.4% | 10,438.0 23.4% | 11,078.5 23.4% | 11,679.5 23.4% | 12,229.8 23.4% | 12,719.0 23.4% |
% of FCFF used in calculation | 65.2% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.95 | 0.86 | 0.78 | 0.70 | 0.64 | 0.58 | 0.52 | 0.47 | 0.43 | 0.38 | ||||||
Discounted FCFF (DFCFF) | 4,238.5 | 6,334.3 | 5,987.1 | 5,901.2 | 5,778.6 | 5,621.3 | 5,432.0 | 5,214.2 | 4,971.5 | 4,708.1 |
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AMAT DCF Value
DCF Value Calculation
as of Mar 03, 2025
Sum of DFCFF
% share of EV
54.2B
42.1%
Terminal Value (TV)
193.6B
Discounted TV
% share of EV
74.5B
57.9%
128.7B
9,471.0M
Total Debt
6,259.0M
131.9B
Shares outstanding
840.8M
FX rate
1.0
156.9
3.1% undervalued
Equity Value Bridge
AMAT DCF Financials
Revenue
$27.2B -> $52.2B
6.7% CAGR
Operating Income
$7,867.0M -> $15.2B
6.8% CAGR
FCFF
$7,245.1M -> $12.2B
5.4% CAGR
AMAT DCF sensitivity
DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
10.0%
$157.0
$164.0
$172.0
$181.0
$192.0
10.5%
$147.0
$152.0
$159.0
$166.0
$175.0
10.6%
$145.0
$151.0
$157.0
$164.0
$173.0
11.5%
$129.0
$133.0
$137.0
$143.0
$148.0
12.0%
$122.0
$125.0
$129.0
$133.0
$138.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
10.0%
3.0%
8.0%
13.0%
19.0%
26.0%
10.5%
(3.0%)
0.0%
5.0%
9.0%
15.0%
10.6%
(5.0%)
(1.0%)
3.0%
8.0%
14.0%
11.5%
(15.0%)
(13.0%)
(10.0%)
(6.0%)
(3.0%)
12.0%
(20.0%)
(18.0%)
(15.0%)
(13.0%)
(9.0%)
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FAQ
What is Applied Materials, Inc. DCF (discounted cash flow) valuation?
As of Mar 03, 2025, Applied Materials, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $156.9. This suggests it may be undervalued by 3.1% compared to its current price of around $152.1, using a WACC of 10.6% and growth rates of 4.0%.
What is Applied Materials, Inc. WACC?
As of Mar 03, 2025, Applied Materials, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 10.6%.
What is Applied Materials, Inc. Enterprise Value?
As of Mar 03, 2025, Applied Materials, Inc.'s Enterprise Value (EV) is approximately $128.7B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.