Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

Applied Materials Inc., FCFE calculation

US$ in millions

12 months ended:	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019	Oct 28, 2018
Net income	6,856)	6,525)	5,888)	3,619)	2,706)	3,313)
Net noncash charges	1,069)	666)	898)	823)	656)	813)
Changes in operating assets and liabilities, net of amounts acquired	775)	(1,792)	(1,344)	(638)	(115)	(339)
Cash provided by operating activities	8,700)	5,399)	5,442)	3,804)	3,247)	3,787)
Capital expenditures	(1,106)	(787)	(668)	(422)	(441)	(622)
Proceeds from commercial paper	991)	—)	—)	—)	—)	—)
Repayments of commercial paper	(900)	—)	—)	—)	—)	—)
Debt borrowings, net of issuance costs	—)	—)	—)	2,979)	—)	—)
Debt repayments	—)	—)	—)	(2,882)	—)	—)
Repayments of principals on finance leases	(7)	—)	—)	—)	—)	—)
Free cash flow to equity (FCFE)	7,678)	4,612)	4,774)	3,479)	2,806)	3,165)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Applied Materials Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Applied Materials Inc. FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to FCFE Ratio, Current

Applied Materials Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	830,897,356
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	7,678)
FCFE per share	9.24
Current share price (P)	203.38
Valuation Ratio
P/FCFE	22.01
Benchmarks
P/FCFE, Competitors¹
Advanced Micro Devices Inc.	226.87
Analog Devices Inc.	24.81
Broadcom Inc.	36.15
Intel Corp.	—
KLA Corp.	37.68
Lam Research Corp.	26.07
Micron Technology Inc.	—
NVIDIA Corp.	85.11
ON Semiconductor Corp.	229.37
Qualcomm Inc.	17.93
Texas Instruments Inc.	41.98
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	87.50
P/FCFE, Industry
Information Technology	41.64

Based on: 10-K (reporting date: 2023-10-29).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Applied Materials Inc., historical P/FCFE 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$)
Free cash flow to equity (FCFE) (in millions)²	7,678)	4,612)	4,774)	3,479)	2,806)	3,165)
FCFE per share³	9.24	5.46	5.37	3.80	3.07	3.30
Share price^1, 4	161.95	104.73	146.15	88.30	59.87	33.71
Valuation Ratio
P/FCFE⁵	17.53	19.17	27.20	23.21	19.53	10.21
Benchmarks
P/FCFE, Competitors⁶
Advanced Micro Devices Inc.	241.70	33.46	44.72	133.51	—	—
Analog Devices Inc.	22.28	24.14	34.67	33.98	37.52	50.53
Broadcom Inc.	30.06	14.62	22.35	9.16	5.64	13.72
Intel Corp.	—	—	14.25	8.57	16.55	—
KLA Corp.	26.78	9.01	28.05	19.15	9.84	39.74
Lam Research Corp.	18.67	24.95	34.58	16.89	6.14	14.02
Micron Technology Inc.	—	18.66	37.24	81.71	13.92	—
NVIDIA Corp.	151.04	54.83	35.20	44.23	30.19	—
ON Semiconductor Corp.	261.49	21.51	38.47	50.56	9.02	—
Qualcomm Inc.	11.97	19.13	17.93	34.91	16.39	—
Texas Instruments Inc.	37.61	23.88	21.87	24.10	18.77	—
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	48.11	28.83	25.00	17.80	14.04	—
P/FCFE, Industry
Information Technology	33.34	26.56	27.30	23.29	18.92	—

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 7,678,000,000 ÷ 831,067,105 = 9.24

⁴ Closing price as at the filing date of Applied Materials Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 161.95 ÷ 9.24 = 17.53

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Applied Materials Inc. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.

Applied Materials Inc. (NASDAQ:AMAT)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical