Applied Materials, Inc (AP2) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Applied Materials, Inc €331, price €480, upside -30.9%, quality 76 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? Yes
- Add to watchlist
Applied Materials, Inc
AP2 · XETRAGreat Company, Expensive PriceQuality growthHigh Quality, but the stock trades above estimated Fair Value.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 28, 2026.
How to read this chart
60‑month range €73.71 – €640.80 · fair‑value band €188.44 – €434.04 · the €479.85 price screens above the €331.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 28, 2026.
Company profile
Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments.
Show more
Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.
Stock analysis
Applied Materials, Inc (AP2) currently trades at €479.85, while our model-based Fair Value estimate is €331.38, 30.9% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the Growth Earnings group reads highest at a median of €169.07 per share, and 0 of the 26 models we run sit above the €479.85 price.
Bear case: the Economic Profit group reads lowest at €67.74, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: €188.44 (bear) to €434.04 (bull), the price of €479.85 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 76/100 (high quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Applied Materials, Inc reported revenue of $28.4B in FY2025 versus $23.1B in FY2021, a compound +5.3%/yr. Reported net income was $7.0B in FY2025, compounding +4.4%/yr from FY2021.
Key figures
Market cap €388B · P/E ratio 51.5 · P/S ratio 12.7 · EPS (TTM) €9.32 · Dividend yield 0.4% · Net margin 24.7% · Return on equity 39.7% · Return on assets (EBIT) 25.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 53 out of 100 (low confidence).
What moves the price
The share trades about 25% below its 52-week high and 161% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −39% fair-value upside, at −31%, AP2 screens cheaper than that median.
Fair Value models
All 26 models by family
Notify me when AP2 reaches fair value
Put AP2 on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.
Set up alert →Quality Score breakdown
Of which business quality 74 · Market factors (momentum, volatility) 62
Revenue & earnings trend
Growth Forecast
AP2 screens overvalued: fair value 31% below the price. Compare with ASML Holding →
Compare Applied Materials, Inc with another stock
Price, fair value, quality and upside side by side.
Context: sector, industry, market
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: German Stocks
- Valuation of the Germany market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Semiconductor Equipment & Materials stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| ASML Holding ASML | €1,597 | €1,350 | −15% |
| Lam Research Corporation LRCX | $314.47 | $250.94 | −20% |
| KLA Corporation KLAC | $187.92 | $160.12 | −15% |
| Teradyne, Inc TER | $415.79 | $65.79 | −84% |
| Advanced Micro-Fabrication Equipment Inc 688012 | ¥339.30 | ¥110.10 | −68% |
| Hon. Precision, Inc 7769 | 5,670 TWD | 4,864 TWD | −14% |
| Piotech Inc 688072 | ¥700.90 | ¥320.60 | −54% |
| Qnity Electronics, Inc Q | $124.69 | $70.44 | −44% |
| Entegris, Inc ENTG | $151.89 | $92.64 | −39% |
| Hwatsing Technology Co 688120 | ¥247.17 | ¥92.46 | −63% |
Explore undervalued stocks
More undervalued Technology stocks →
Try a ready-made strategy
Pick a strategy and jump into the live analysis with that exact screen applied.
Discover tools
Frequently asked questions
Is Applied Materials, Inc (AP2) overvalued or undervalued?
What is the fair value of AP2?
What is the quality score of AP2?
What is the price target for Applied Materials, Inc (AP2)?
What is the Applied Materials, Inc stock forecast for 2026?
What is the revenue of Applied Materials, Inc (AP2)?
Does Applied Materials, Inc pay a dividend?
What growth is priced into Applied Materials, Inc (AP2)?
What discount rate (WACC) does the fair value of AP2 use?
What is a reverse DCF?
How much growth has Applied Materials, Inc (AP2) delivered so far?
How fast is the sector of Applied Materials, Inc (AP2) growing?
What is the free cash flow yield of Applied Materials, Inc (AP2)?
What is the intrinsic value of Applied Materials, Inc (AP2)?
Is Applied Materials, Inc stock overvalued or undervalued in 2026?
Is fair value the same as the market price of AP2?
How much is Applied Materials, Inc worth?
What do the bullish and bearish scenarios say about AP2?
How far is AP2 from its 52-week high?
Which stocks are comparable to Applied Materials, Inc?
Is Applied Materials, Inc stock attractive at the current price?
How is the fair value of AP2 calculated?
Is it still worth investing in stocks now?
What is the share price of Applied Materials, Inc (AP2)?
What should I pay attention to with Applied Materials, Inc right now?
Where does the earnings growth of Applied Materials, Inc (AP2) come from?
Key figures of Applied Materials, Inc
How large is the market capitalisation of Applied Materials, Inc (AP2)?
What is the P/E ratio of Applied Materials, Inc (AP2)?
What is the P/S ratio of Applied Materials, Inc (AP2)?
What are the earnings per share of Applied Materials, Inc (AP2)?
What is the dividend yield of Applied Materials, Inc (AP2)?
What is the net margin of Applied Materials, Inc (AP2)?
What is the return on equity of Applied Materials, Inc (AP2)?
What is the EBIT return on assets of Applied Materials, Inc (AP2)?
What is the operating margin of Applied Materials, Inc (AP2)?
How fast is revenue growing at Applied Materials, Inc (AP2)?
How fast are earnings growing at Applied Materials, Inc (AP2)?
How much net cash does Applied Materials, Inc (AP2) hold?
Continue in the live analysis
Fair value and trend for 35,000+ stocks, watchlist, comparison and the diversification check. You can also try 14 days of Pro there, no card.
Open the live analysis →Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.