What Is AMAT Fair Value?
Applied Materials Inc. (AMAT) fair value estimate using multiple valuation models, updated daily.
As of September 16, 2026, Applied Materials Inc. (AMAT) has a composite fair value estimate of $301.08 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $415.38, suggesting the stock is overvalued by 27.5%.
Data as of September 16, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$301.08
vs. current price of $415.38(-27.5%)
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)
41% 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 →
$252.03
-39.3%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% 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 →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
AMAT Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% 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
-76.8%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% 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.
$512.16
+23.3%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 $415.38 is 39.3% 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 | $6.41B |
| Year 3 | $10.25B | $7.09B |
| Year 4 | $12.81B | $7.84B |
| Year 5 | $16.02B | $8.66B |
| Year 6 | $20.02B | $9.58B |
| Year 7 | $25.03B | $10.59B |
| Year 8 | $31.28B | $11.70B |
| Year 9 | $39.10B | $12.93B |
| Year 10 | $48.88B | $14.30B |
| Terminal Value | $473.56B | $138.52B |
What Are AMAT's Key Financial Metrics?
Earnings & Growth
Current Price
$415.38
EPS (TTM)
$11.58
Forward P/E
22.5
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
$640.89
High
$900.00
Upside
+54.3%
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 $301.08. The stock is currently trading at $415.38, 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 $415.38 is 27.5% above our estimated fair value of $301.08.
What do Wall Street analysts say about AMAT?
35 analysts cover Applied Materials Inc. with a consensus rating of "Strong Buy." The average price target is $640.89, ranging from $358.00 to $900.00. This implies 54.3% upside from the current price.