Applied Materials manufactures materials engineering solutions for the semiconductor, flat panel display and solar photovoltaic industries, used in smartphones, flat screen TVs and solar panels. The company was founded in 1967 and is based in Santa Clara, California.
AMAT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AMAT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Applied Materials Inc ranked in the 58st percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for AMAT, they are:
As a business, AMAT is generating more cash flow than 91.31% of positive cash flow stocks in the Technology.
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than merely 23.35% of the free cash flow producing stocks we're observing.
AMAT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 45.51% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Applied Materials Inc? See NLOK, SNX, COMM, ZBRA, and JBL.