Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Applied Materials Inc., current price multiples
| Applied Materials Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | ON Semiconductor Corp. | Qualcomm Inc. | Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | $203.38 | ||||||||||||||||
| No. shares of common stock outstanding | 830,897,356 | ||||||||||||||||
| Growth rate (g) | 35.06% | ||||||||||||||||
| Earnings per share (EPS) | $8.25 | ||||||||||||||||
| Next year expected EPS | $11.14 | ||||||||||||||||
| Operating profit per share | $9.21 | ||||||||||||||||
| Sales per share | $31.91 | ||||||||||||||||
| Book value per share (BVPS) | $19.68 | ||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | 24.65 | 297.80 | 30.22 | 44.23 | 80.35 | 28.07 | 26.89 | — | 73.70 | 13.32 | 25.56 | 24.82 | 85.33 | 44.03 | |||
| Price to next year expected earnings | 18.25 | 257.84 | 29.09 | 43.81 | 76.66 | 19.44 | 19.07 | — | 55.40 | 11.06 | 18.21 | 19.96 | 74.96 | 34.98 | |||
| Price-earnings-growth (PEG) | 0.70 | 19.21 | 7.82 | 45.58 | 16.71 | 0.63 | 0.66 | — | 2.23 | 0.65 | 0.63 | 1.02 | 6.17 | 1.70 | |||
| Price to operating profit (P/OP) | 22.08 | 634.23 | 26.20 | 38.43 | 1,459.28 | 23.80 | 23.44 | — | 66.52 | 11.46 | 23.74 | 22.04 | 78.43 | 37.02 | |||
| Price to sales (P/S) | 6.37 | 11.21 | 8.14 | 17.39 | 2.50 | 9.06 | 6.96 | 8.18 | 36.00 | 3.52 | 5.16 | 9.22 | 14.79 | 9.74 | |||
| Price to book value (P/BV) | 10.34 | 4.55 | 2.82 | 25.97 | 1.29 | 32.57 | 14.78 | 2.88 | 51.03 | 3.74 | 8.57 | 9.56 | 11.62 | 14.06 | |||
Based on: 10-K (reporting date: 2023-10-29).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Applied Materials Inc., historical price multiples
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Applied Materials Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Applied Materials Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Applied Materials Inc. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Applied Materials Inc. P/BV ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Price to Earnings (P/E)
Applied Materials Inc., historical P/E calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 831,067,105 | 844,139,722 | 888,513,248 | 914,344,189 | 915,304,098 | 958,606,093 | |
| Selected Financial Data (US$) | |||||||
| Net income (in millions) | 6,856) | 6,525) | 5,888) | 3,619) | 2,706) | 3,313) | |
| Earnings per share (EPS)2 | 8.25 | 7.73 | 6.63 | 3.96 | 2.96 | 3.46 | |
| Share price1, 3 | 161.95 | 104.73 | 146.15 | 88.30 | 59.87 | 33.71 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 19.63 | 13.55 | 22.05 | 22.31 | 20.25 | 9.75 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | 317.27 | 96.16 | 45.54 | 41.66 | 169.62 | — | |
| Analog Devices Inc. | 27.14 | 31.21 | 68.31 | 41.43 | 31.04 | 22.17 | |
| Broadcom Inc. | 36.78 | 20.70 | 40.73 | 66.37 | 47.09 | 8.14 | |
| Intel Corp. | 109.27 | 14.54 | 9.85 | 11.02 | 13.91 | — | |
| KLA Corp. | 20.04 | 16.89 | 25.97 | 25.92 | 18.44 | 23.02 | |
| Lam Research Corp. | 19.27 | 13.77 | 21.03 | 24.22 | 13.64 | 11.70 | |
| Micron Technology Inc. | — | 6.62 | 13.38 | 21.80 | 7.98 | 3.40 | |
| NVIDIA Corp. | 131.68 | 68.09 | 78.52 | 67.57 | 22.79 | — | |
| ON Semiconductor Corp. | 15.18 | 18.26 | 25.13 | 73.60 | 40.58 | — | |
| Qualcomm Inc. | 17.07 | 9.75 | 17.15 | 28.06 | 22.03 | — | |
| Texas Instruments Inc. | 22.24 | 18.88 | 20.38 | 27.95 | 24.47 | — | |
| P/E Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 46.92 | 22.77 | 24.31 | 25.46 | 19.37 | — | |
| P/E Ratio, Industry | |||||||
| Information Technology | 35.25 | 26.57 | 28.96 | 30.85 | 22.48 | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 6,856,000,000 ÷ 831,067,105 = 8.25
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 161.95 ÷ 8.25 = 19.63
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Applied Materials Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
Price to Operating Profit (P/OP)
Applied Materials Inc., historical P/OP calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 831,067,105 | 844,139,722 | 888,513,248 | 914,344,189 | 915,304,098 | 958,606,093 | |
| Selected Financial Data (US$) | |||||||
| Income from operations (in millions) | 7,654) | 7,788) | 6,889) | 4,365) | 3,350) | 4,796) | |
| Operating profit per share2 | 9.21 | 9.23 | 7.75 | 4.77 | 3.66 | 5.00 | |
| Share price1, 3 | 161.95 | 104.73 | 146.15 | 88.30 | 59.87 | 33.71 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 17.58 | 11.35 | 18.85 | 18.50 | 16.36 | 6.74 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | 675.69 | 100.42 | 39.48 | 75.77 | 91.66 | — | |
| Analog Devices Inc. | 23.53 | 26.16 | 56.12 | 33.76 | 24.74 | 17.62 | |
| Broadcom Inc. | 31.96 | 16.33 | 30.77 | 44.03 | 36.85 | 19.42 | |
| Intel Corp. | 1,984.43 | 49.91 | 10.06 | 9.72 | 13.29 | — | |
| KLA Corp. | 16.99 | 15.36 | 21.69 | 20.99 | 15.60 | 12.01 | |
| Lam Research Corp. | 16.79 | 11.79 | 18.34 | 20.40 | 12.12 | 8.66 | |
| Micron Technology Inc. | — | 5.93 | 12.48 | 19.51 | 6.83 | 3.20 | |
| NVIDIA Corp. | 136.17 | 66.13 | 75.05 | 66.39 | 24.81 | — | |
| ON Semiconductor Corp. | 13.06 | 14.72 | 19.70 | 49.43 | 19.86 | — | |
| Qualcomm Inc. | 15.85 | 7.95 | 15.84 | 23.32 | 12.60 | 103.26 | |
| Texas Instruments Inc. | 19.75 | 16.29 | 17.67 | 26.53 | 21.46 | — | |
| P/OP Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 43.12 | 21.12 | 22.05 | 22.54 | 16.64 | — | |
| P/OP Ratio, Industry | |||||||
| Information Technology | 29.65 | 22.44 | 25.70 | 26.39 | 19.60 | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 7,654,000,000 ÷ 831,067,105 = 9.21
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 161.95 ÷ 9.21 = 17.58
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Applied Materials Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
Price to Sales (P/S)
Applied Materials Inc., historical P/S calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 831,067,105 | 844,139,722 | 888,513,248 | 914,344,189 | 915,304,098 | 958,606,093 | |
| Selected Financial Data (US$) | |||||||
| Net sales (in millions) | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | 17,253) | |
| Sales per share2 | 31.91 | 30.55 | 25.96 | 18.81 | 15.96 | 18.00 | |
| Share price1, 3 | 161.95 | 104.73 | 146.15 | 88.30 | 59.87 | 33.71 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 5.08 | 3.43 | 5.63 | 4.69 | 3.75 | 1.87 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | 11.95 | 5.38 | 8.76 | 10.63 | 8.59 | — | |
| Analog Devices Inc. | 7.31 | 7.14 | 12.98 | 9.03 | 7.06 | 5.35 | |
| Broadcom Inc. | 14.46 | 7.00 | 9.55 | 7.40 | 5.62 | 4.78 | |
| Intel Corp. | 3.40 | 1.85 | 2.48 | 2.96 | 4.07 | — | |
| KLA Corp. | 6.47 | 6.09 | 7.80 | 5.43 | 4.74 | 4.57 | |
| Lam Research Corp. | 4.99 | 3.68 | 5.62 | 5.43 | 3.10 | 2.51 | |
| Micron Technology Inc. | 4.94 | 1.87 | 2.83 | 2.73 | 2.15 | 1.58 | |
| NVIDIA Corp. | 21.32 | 24.67 | 20.40 | 17.31 | 8.06 | — | |
| ON Semiconductor Corp. | 4.02 | 4.17 | 3.76 | 3.28 | 1.56 | — | |
| Qualcomm Inc. | 3.45 | 2.85 | 4.62 | 6.20 | 3.98 | 3.37 | |
| Texas Instruments Inc. | 8.26 | 8.25 | 8.63 | 10.81 | 8.54 | — | |
| P/S Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 8.13 | 5.78 | 6.19 | 5.74 | 4.64 | — | |
| P/S Ratio, Industry | |||||||
| Information Technology | 7.80 | 6.39 | 7.39 | 6.58 | 4.98 | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 26,517,000,000 ÷ 831,067,105 = 31.91
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 161.95 ÷ 31.91 = 5.08
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Applied Materials Inc. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
Price to Book Value (P/BV)
Applied Materials Inc., historical P/BV calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 831,067,105 | 844,139,722 | 888,513,248 | 914,344,189 | 915,304,098 | 958,606,093 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity (in millions) | 16,349) | 12,194) | 12,247) | 10,578) | 8,214) | 6,839) | |
| Book value per share (BVPS)2 | 19.67 | 14.45 | 13.78 | 11.57 | 8.97 | 7.13 | |
| Share price1, 3 | 161.95 | 104.73 | 146.15 | 88.30 | 59.87 | 33.71 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 8.23 | 7.25 | 10.60 | 7.63 | 6.67 | 4.73 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | 4.85 | 2.32 | 19.21 | 17.77 | 20.46 | — | |
| Analog Devices Inc. | 2.53 | 2.35 | 2.50 | 4.22 | 3.61 | 3.02 | |
| Broadcom Inc. | 21.59 | 10.23 | 10.50 | 7.40 | 5.09 | 3.74 | |
| Intel Corp. | 1.75 | 1.15 | 2.05 | 2.84 | 3.78 | — | |
| KLA Corp. | 23.25 | 40.05 | 15.98 | 11.83 | 8.15 | 11.39 | |
| Lam Research Corp. | 10.59 | 10.10 | 13.64 | 10.55 | 6.39 | 4.28 | |
| Micron Technology Inc. | 1.74 | 1.15 | 1.79 | 1.50 | 1.40 | 1.49 | |
| NVIDIA Corp. | 26.02 | 24.95 | 20.13 | 15.48 | 10.10 | — | |
| ON Semiconductor Corp. | 4.26 | 5.61 | 5.53 | 4.87 | 2.60 | — | |
| Qualcomm Inc. | 5.72 | 7.00 | 15.59 | 24.00 | 19.69 | 82.57 | |
| Texas Instruments Inc. | 8.57 | 11.33 | 11.87 | 17.02 | 13.79 | — | |
| P/BV Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 6.39 | 5.18 | 6.23 | 6.13 | 5.13 | — | |
| P/BV Ratio, Industry | |||||||
| Information Technology | 11.26 | 10.27 | 12.31 | 10.87 | 8.24 | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 16,349,000,000 ÷ 831,067,105 = 19.67
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 161.95 ÷ 19.67 = 8.23
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Applied Materials Inc. P/BV ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |