What Is AMAT Fair Value?
Applied Materials Inc. (AMAT) fair value estimate using multiple valuation models, updated daily.
As of October 31, 2026, Applied Materials Inc. (AMAT) has a composite fair value estimate of $264.33 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $390.09, suggesting the stock is overvalued by 32.2%.
Data as of October 31, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$264.33
vs. current price of $390.09(-32.2%)
How Is AMAT Fair Value Calculated?
Four independent models estimate what AMAT is worth. Each uses different inputs and assumptions. The composite blends them by weight.
AMAT Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$253.52
-35.0%Overvalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$43.61
-88.8%Overvalued
Inputs used
AMAT Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$96.41
-75.3%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$517.19
+32.6%Undervalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $390.09 is 35.0% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $6.56B | $5.80B |
| Year 2 | $8.20B | $6.42B |
| Year 3 | $10.25B | $7.10B |
| Year 4 | $12.81B | $7.85B |
| Year 5 | $16.02B | $8.68B |
| Year 6 | $20.02B | $9.60B |
| Year 7 | $25.03B | $10.61B |
| Year 8 | $31.28B | $11.74B |
| Year 9 | $39.10B | $12.98B |
| Year 10 | $48.88B | $14.36B |
| Terminal Value | $475.58B | $139.67B |
What Are AMAT's Key Financial Metrics?
Earnings & Growth
Current Price
$390.09
EPS (TTM)
$11.59
Forward P/E
21.0
Profit Margin
30.1%
Cash & Balance Sheet
Free Cash Flow
3.1B
EBITDA
10.2B
Book Value
$32.29
Total Debt
7.3B
What Do Analysts Say About AMAT?
Low
$358.00
Average
$627.54
High
$900.00
Upside
+60.9%
AMAT Fair Value FAQ
What is the fair value of AMAT?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), AMAT's estimated fair value is $264.33. The stock is currently trading at $390.09, which makes it overvalued by our analysis.
How is AMAT's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is AMAT overvalued or undervalued?
Based on our analysis, AMAT is overvalued. The current price of $390.09 is 32.2% above our estimated fair value of $264.33.
What do Wall Street analysts say about AMAT?
37 analysts cover Applied Materials Inc. with a consensus rating of "Strong Buy." The average price target is $627.54, ranging from $358.00 to $900.00. This implies 60.9% upside from the current price.