Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Applied Materials Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-10-26), 10-K (reporting date: 2024-10-27), 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).
The financial data reveals several significant trends regarding cash flow activities over the analyzed periods.
- Cash Provided by Operating Activities
- There is an overall upward trend from 2020 to 2023, with values increasing from $3,804 million in October 2020 to a peak of $8,700 million in October 2023. Following this peak, the figures slightly decline, registering $8,677 million in October 2024 and further decreasing to $7,958 million by October 2025. This pattern indicates strong operational cash generation growth through 2023, followed by a moderate contraction over the subsequent two years.
- Free Cash Flow to Equity (FCFE)
- Similar to operating cash flow, FCFE demonstrates considerable growth from $3,479 million in 2020 to $7,678 million in 2023. Interestingly, unlike operating cash flow, FCFE increases further in 2024 to $8,080 million before dropping more noticeably to $5,990 million in 2025. The fluctuations suggest variations in capital expenditures, debt servicing, or dividend payments that influence the net cash available to equity holders.
Overall, both metrics show a strong upward trajectory up to 2023, reflecting improved cash generation capabilities and possibly more effective working capital or investment management. However, the declines observed in the last two years indicate either increased cash outflows or reduced revenues affecting liquidity and cash availability. The sharper reduction in FCFE in the latest year may imply changes in financing activities or capital structure decisions impacting equity holders' cash returns more acutely than operational performance alone.
Price to FCFE Ratio, Current
Applied Materials Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 792,943,366 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 5,990) |
| FCFE per share | 7.55 |
| Current share price (P) | 261.27 |
| Valuation Ratio | |
| P/FCFE | 34.59 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | 204.20 |
| Analog Devices Inc. | 25.78 |
| Broadcom Inc. | 40.36 |
| Intel Corp. | — |
| KLA Corp. | 53.81 |
| Lam Research Corp. | 42.06 |
| Micron Technology Inc. | 180.25 |
| NVIDIA Corp. | 71.87 |
| Qualcomm Inc. | 14.82 |
| Texas Instruments Inc. | 41.70 |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | 90.79 |
| P/FCFE, Industry | |
| Information Technology | 51.34 |
Based on: 10-K (reporting date: 2025-10-26).
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 26, 2025 | Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 792,943,366 | 813,684,638 | 831,067,105 | 844,139,722 | 888,513,248 | 914,344,189 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 5,990) | 8,080) | 7,678) | 4,612) | 4,774) | 3,479) | |
| FCFE per share3 | 7.55 | 9.93 | 9.24 | 5.46 | 5.37 | 3.80 | |
| Share price1, 4 | 259.21 | 169.35 | 161.95 | 104.73 | 146.15 | 88.30 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 34.31 | 17.05 | 17.53 | 19.17 | 27.20 | 23.21 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Advanced Micro Devices Inc. | — | 109.67 | 241.70 | 33.46 | 44.72 | 133.51 | |
| Analog Devices Inc. | 23.16 | 29.30 | 22.28 | 24.14 | 34.67 | 33.98 | |
| Broadcom Inc. | — | 26.03 | 30.06 | 14.62 | 22.35 | 9.16 | |
| Intel Corp. | — | — | — | — | 14.25 | 8.57 | |
| KLA Corp. | 40.35 | 25.11 | 26.78 | 9.01 | 28.05 | 19.15 | |
| Lam Research Corp. | 26.31 | 25.89 | 18.67 | 24.95 | 34.58 | 16.89 | |
| Micron Technology Inc. | 142.55 | — | — | 18.66 | 37.24 | 81.71 | |
| NVIDIA Corp. | 53.74 | 65.45 | 151.07 | 54.83 | 35.22 | 44.24 | |
| Qualcomm Inc. | 14.86 | 18.57 | 11.97 | 19.13 | 17.93 | 34.91 | |
| Texas Instruments Inc. | — | 42.96 | 37.61 | 23.88 | 21.87 | 24.10 | |
| P/FCFE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 45.81 | 47.55 | 29.02 | 24.87 | 17.64 | |
| P/FCFE, Industry | |||||||
| Information Technology | — | 36.63 | 33.18 | 26.93 | 27.31 | 23.40 | |
Based on: 10-K (reporting date: 2025-10-26), 10-K (reporting date: 2024-10-27), 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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,990,000,000 ÷ 792,943,366 = 7.55
4 Closing price as at the filing date of Applied Materials Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 259.21 ÷ 7.55 = 34.31
6 Click competitor name to see calculations.
The financial data reveals several notable trends over the observed periods. The share price exhibits a general upward trajectory with some fluctuations. Starting at $88.30 in late 2020, it more than doubles by late 2025, reaching $259.21. However, there is a notable dip in late 2022, where the share price drops to $104.73 before resuming its growth path.
Free Cash Flow to Equity (FCFE) per share also shows an increasing trend but with some variability. The FCFE per share grows from $3.80 in 2020 to a peak of $9.93 in late 2024, representing strong cash flow generation relative to equity. In the final period, it decreases to $7.55, indicating some contraction in cash flow available to shareholders.
The Price to Free Cash Flow to Equity (P/FCFE) ratio fluctuates significantly during the observation period. Initially, the ratio increases from 23.21 in 2020 to 27.20 in 2021, suggesting the share price grew faster than FCFE during that time. Subsequently, it declines to a low of 17.05 by late 2024, indicating a more favorable valuation relative to cash flow. However, the final recorded value jumps sharply to 34.31 in late 2025, reflecting a strong increase in share price relative to FCFE, potentially signaling overvaluation or expectations of future growth not yet reflected in FCFE.
- Share Price
- Overall upward trend with temporary decline in 2022, culminating in a significant increase by 2025.
- FCFE per Share
- Consistent growth with peak in 2024, followed by a decline in 2025, showing variability in cash flow generation.
- P/FCFE Ratio
- Variable trend with initial increase, followed by a decrease, then a large spike in 2025, indicating changing market valuation relative to cash flow.