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. | Qualcomm Inc. | Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||
| Current share price (P) | $261.90 | |||||||||||||||
| No. shares of common stock outstanding | 792,943,366 | |||||||||||||||
| Growth rate (g) | 35.39% | |||||||||||||||
| Earnings per share (EPS) | $8.83 | |||||||||||||||
| Next year expected EPS | $11.95 | |||||||||||||||
| Operating profit per share | $10.45 | |||||||||||||||
| Sales per share | $35.78 | |||||||||||||||
| Book value per share (BVPS) | $25.75 | |||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||||
| Price to earnings (P/E) | 29.68 | 213.29 | 59.79 | 72.19 | — | 41.39 | 41.74 | 37.54 | 63.53 | 33.79 | 33.49 | 165.64 | 65.65 | |||
| Price to next year expected earnings | 21.92 | 191.32 | 58.85 | 72.79 | — | 25.57 | 28.92 | 34.62 | 45.51 | 25.71 | 28.74 | 148.98 | 52.43 | |||
| Price-earnings-growth (PEG) | 0.84 | 18.58 | 37.74 | — | — | 0.67 | 0.94 | 4.46 | 1.60 | 1.08 | 2.03 | 14.82 | 2.60 | |||
| Price to operating profit (P/OP) | 25.05 | 184.22 | 46.23 | 65.51 | — | 35.21 | 37.90 | 32.81 | 56.84 | 15.15 | 29.41 | 115.84 | 50.94 | |||
| Price to sales (P/S) | 7.32 | 13.57 | 12.30 | 26.13 | 3.25 | 13.83 | 12.13 | 8.58 | 35.48 | 4.23 | 10.28 | 24.74 | 13.55 | |||
| Price to book value (P/BV) | 10.17 | 6.08 | 4.01 | 20.54 | 1.74 | 35.83 | 22.68 | 5.92 | 58.36 | 8.83 | 9.51 | 19.50 | 19.27 | |||
Based on: 10-K (reporting date: 2025-10-26).
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: 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 ratios reflect notable fluctuations over the observed periods, indicating shifts in market valuation relative to earnings, operating profit, sales, and book value.
- Price to Earnings (P/E) Ratio
- The P/E ratio began at 22.31 and remained relatively stable through 2021 at 22.05, before experiencing a significant decrease to 13.55 in 2022. It then rebounded to levels close to 19 in 2023 and 2024, followed by a marked increase reaching 29.37 in 2025. This pattern suggests cyclical valuation adjustments, with a notable undervaluation in 2022 relative to earnings, followed by growing investor optimism or improved earnings prospects in the later years.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio shows a similar trend as the P/E ratio. Starting at 18.5 in 2020, it increased slightly to 18.85 in 2021, then dropped significantly to 11.35 in 2022. Subsequently, it rose again to near previous levels with 17.58 in 2023 and 17.52 in 2024, then escalated sharply to 24.8 in 2025. This movement may reflect changes in operating profitability and market sentiment toward the company’s operational efficiency over time.
- Price to Sales (P/S) Ratio
- The P/S ratio displays parallel fluctuations. It increased from 4.69 in 2020 to 5.63 in 2021, declined substantially to 3.43 in 2022, then recovered to 5.08 in 2023 and held steady at 5.07 in 2024 before rising significantly to 7.25 in 2025. This trajectory suggests revenue-based valuation dipped markedly in 2022 but improved thereafter, culminating in a premium valuation relative to sales in 2025.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio rose from 7.63 in 2020 to 10.6 in 2021, fell to 7.25 in 2022, increased moderately to 8.23 in 2023, reverted to 7.25 in 2024, and climbed again to 10.07 in 2025. The sharp increase in 2021 and 2025 suggests periods of heightened market expectations or growth potential relative to the company's net asset value, while the dips in 2022 and 2024 indicate valuation contractions during those years.
Overall, the data reveal a consistent pattern of valuation dips around 2022 across all ratios, followed by recovery and heightened valuation multiples by 2025. This indicates a cycle potentially influenced by changes in profitability, sales performance, and investor sentiment, with 2025 showing a robust positive outlook as reflected by elevated valuation metrics.
Price to Earnings (P/E)
Applied Materials Inc., historical P/E 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$) | |||||||
| Net income (in millions) | 6,998) | 7,177) | 6,856) | 6,525) | 5,888) | 3,619) | |
| Earnings per share (EPS)2 | 8.83 | 8.82 | 8.25 | 7.73 | 6.63 | 3.96 | |
| Share price1, 3 | 259.21 | 169.35 | 161.95 | 104.73 | 146.15 | 88.30 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 29.37 | 19.20 | 19.63 | 13.55 | 22.05 | 22.31 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | — | 110.61 | 317.27 | 96.16 | 45.54 | 41.66 | |
| Analog Devices Inc. | 54.43 | 66.48 | 27.14 | 31.21 | 68.31 | 41.43 | |
| Broadcom Inc. | 67.63 | 175.56 | 36.78 | 20.70 | 40.73 | 66.38 | |
| Intel Corp. | — | — | 109.27 | 14.54 | 9.85 | 11.02 | |
| KLA Corp. | 29.72 | 34.24 | 20.04 | 16.89 | 25.97 | 25.92 | |
| Lam Research Corp. | 24.09 | 27.05 | 19.26 | 13.77 | 21.03 | 24.23 | |
| Micron Technology Inc. | 24.69 | 145.72 | — | 6.62 | 13.38 | 21.80 | |
| NVIDIA Corp. | 43.95 | 56.68 | 131.70 | 68.08 | 78.54 | 67.59 | |
| Qualcomm Inc. | 34.74 | 18.95 | 17.07 | 9.75 | 17.15 | 28.06 | |
| Texas Instruments Inc. | — | 34.72 | 22.24 | 18.88 | 20.38 | 27.95 | |
| P/E Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 78.62 | 48.39 | 22.88 | 24.30 | 25.24 | |
| P/E Ratio, Industry | |||||||
| Information Technology | — | 45.25 | 36.08 | 26.93 | 29.73 | 31.22 | |
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.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 6,998,000,000 ÷ 792,943,366 = 8.83
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 259.21 ÷ 8.83 = 29.37
5 Click competitor name to see calculations.
The financial data over the periods under review reveal several significant trends concerning share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio.
- Share Price
- The share price demonstrates a broadly upward trajectory over the years. Beginning at $88.30 in late 2020, it rose sharply to $146.15 by the end of 2021, then experienced a decline to $104.73 in 2022. Following this dip, the share price recovered strongly, increasing to $161.95 in 2023 and continuing upward to reach $259.21 by late 2025. This indicates a general growth trend with some volatility, particularly in 2022.
- Earnings per Share (EPS)
- The EPS figures show consistent growth throughout the periods. Starting at $3.96 in 2020, EPS increased steadily to $6.63 in 2021 and further to $7.73 in 2022. The growth continued at a steadier pace, reaching $8.25 in 2023 and slightly increasing to $8.83 by 2025. The gradual rise in EPS suggests improving profitability over time, with a marginal slowdown in the rate of increase in the later years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio starts at 22.31 in 2020 and remains relatively stable in 2021 at 22.05. It then falls significantly to 13.55 in 2022, indicating that the share price was low relative to earnings during that year, which aligns with the dip in share price observed. Subsequently, the P/E ratio increases again to 19.63 in 2023 and remains around 19.2 in 2024 before rising sharply to 29.37 in 2025. The increase in the P/E ratio in the final year suggests that the market may be assigning a higher growth expectation or premium to the stock compared to its earnings.
In summary, the data depict a company with steadily increasing profitability expressed through EPS growth. The share price exhibits overall expansion with some fluctuations, notably a decline in 2022 followed by a strong rebound. The P/E ratio reflects changing market sentiment, with a notable undervaluation period in 2022 and heightened valuation in 2025, possibly due to anticipated future growth or improved market conditions.
Price to Operating Profit (P/OP)
Applied Materials Inc., historical P/OP calculation, comparison to benchmarks
| Oct 26, 2025 | Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 792,943,366 | 813,684,638 | 831,067,105 | 844,139,722 | 888,513,248 | 914,344,189 | |
| Selected Financial Data (US$) | |||||||
| Income from operations (in millions) | 8,289) | 7,867) | 7,654) | 7,788) | 6,889) | 4,365) | |
| Operating profit per share2 | 10.45 | 9.67 | 9.21 | 9.23 | 7.75 | 4.77 | |
| Share price1, 3 | 259.21 | 169.35 | 161.95 | 104.73 | 146.15 | 88.30 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 24.80 | 17.52 | 17.58 | 11.35 | 18.85 | 18.50 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | — | 95.53 | 675.69 | 100.42 | 39.48 | 75.77 | |
| Analog Devices Inc. | 42.08 | 53.48 | 23.53 | 26.16 | 56.12 | 33.76 | |
| Broadcom Inc. | 61.37 | 76.87 | 31.96 | 16.33 | 30.78 | 44.04 | |
| Intel Corp. | — | — | 1,984.43 | 49.91 | 10.06 | 9.72 | |
| KLA Corp. | 25.28 | 28.26 | 16.99 | 15.36 | 21.69 | 20.99 | |
| Lam Research Corp. | 21.88 | 24.29 | 16.79 | 11.79 | 18.34 | 20.40 | |
| Micron Technology Inc. | 21.58 | 86.94 | — | 5.93 | 12.48 | 19.51 | |
| NVIDIA Corp. | 39.33 | 51.16 | 136.19 | 66.12 | 75.08 | 66.40 | |
| Qualcomm Inc. | 15.58 | 19.08 | 15.85 | 7.95 | 15.84 | 23.32 | |
| Texas Instruments Inc. | — | 30.49 | 19.75 | 16.29 | 17.67 | 26.53 | |
| P/OP Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 54.98 | 44.62 | 21.30 | 22.09 | 22.38 | |
| P/OP Ratio, Industry | |||||||
| Information Technology | — | 35.11 | 30.04 | 22.85 | 26.25 | 27.02 | |
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.
2 2025 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 8,289,000,000 ÷ 792,943,366 = 10.45
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 259.21 ÷ 10.45 = 24.80
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall increasing trend across the observed periods. Starting at $88.30, it rose significantly to $146.15 by the end of 2021 before experiencing a decline to $104.73 in 2022. Subsequently, the share price resumed an upward trajectory, reaching $259.21 by 2025. This reflects a strong recovery and growth, particularly notable in the last two years.
- Operating Profit Per Share
- Operating profit per share consistently increased throughout the periods. Beginning at $4.77, it demonstrated steady growth, reaching $10.45 by 2025. Slight fluctuations occurred between 2022 and 2023 when the operating profit per share plateaued near $9.2. Overall, the trend indicates improving operational efficiency or profitability per share.
- Price-to-Operating-Profit (P/OP) Ratio
- The P/OP ratio showed variability, starting at 18.5 in 2020 and slightly increasing to 18.85 in 2021. It then declined sharply to 11.35 in 2022, suggesting the share price was relatively lower compared to operating profits at that time. Following this, the ratio increased progressively to 24.8 by 2025, indicating a higher valuation multiple relative to operating profit in recent periods, possibly reflecting increased investor confidence or market expectations.
Price to Sales (P/S)
Applied Materials Inc., historical P/S calculation, comparison to benchmarks
| Oct 26, 2025 | Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 792,943,366 | 813,684,638 | 831,067,105 | 844,139,722 | 888,513,248 | 914,344,189 | |
| Selected Financial Data (US$) | |||||||
| Net revenue (in millions) | 28,368) | 27,176) | 26,517) | 25,785) | 23,063) | 17,202) | |
| Sales per share2 | 35.78 | 33.40 | 31.91 | 30.55 | 25.96 | 18.81 | |
| Share price1, 3 | 259.21 | 169.35 | 161.95 | 104.73 | 146.15 | 88.30 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 7.25 | 5.07 | 5.08 | 3.43 | 5.63 | 4.69 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | — | 7.04 | 11.95 | 5.38 | 8.76 | 10.63 | |
| Analog Devices Inc. | 11.20 | 11.53 | 7.31 | 7.14 | 12.98 | 9.03 | |
| Broadcom Inc. | 24.48 | 20.07 | 14.46 | 7.00 | 9.55 | 7.40 | |
| Intel Corp. | — | 1.58 | 3.40 | 1.85 | 2.48 | 2.96 | |
| KLA Corp. | 9.93 | 9.64 | 6.47 | 6.09 | 7.80 | 5.43 | |
| Lam Research Corp. | 7.00 | 6.95 | 4.99 | 3.68 | 5.62 | 5.43 | |
| Micron Technology Inc. | 5.64 | 4.51 | 4.94 | 1.87 | 2.83 | 2.73 | |
| NVIDIA Corp. | 24.55 | 27.69 | 21.33 | 24.67 | 20.41 | 17.31 | |
| Qualcomm Inc. | 4.35 | 4.93 | 3.45 | 2.85 | 4.62 | 6.20 | |
| Texas Instruments Inc. | — | 10.65 | 8.26 | 8.25 | 8.63 | 10.81 | |
| P/S Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 11.74 | 8.26 | 5.82 | 6.25 | 5.80 | |
| P/S Ratio, Industry | |||||||
| Information Technology | — | 9.34 | 7.33 | 6.01 | 6.99 | 6.13 | |
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.
2 2025 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 28,368,000,000 ÷ 792,943,366 = 35.78
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 259.21 ÷ 35.78 = 7.25
5 Click competitor name to see calculations.
- Share Price
- The share price experienced notable fluctuations over the observed periods. Initially, it rose significantly from $88.30 in 2020 to a peak of $146.15 in 2021. However, in the following year, it declined to $104.73. Subsequently, the share price recovered strongly, reaching $161.95 in 2023 and continuing an upward trajectory to $169.35 in 2024. The most substantial increase occurred between 2024 and 2025, culminating in a price of $259.21, representing a sharp rise relative to prior years.
- Sales per Share
- Sales per share showed a consistent upward trend throughout the periods. Starting at $18.81 in 2020, sales per share increased steadily year-over-year, ending at $35.78 in 2025. This growth suggests an ongoing improvement in the company's revenue generation on a per-share basis, with the rate of increase appearing relatively stable and gradual.
- Price-to-Sales (P/S) Ratio
- The P/S ratio exhibited some variability but an overall increasing trend. It started at 4.69 in 2020 and peaked at 5.63 in 2021, followed by a decline to 3.43 in 2022. After 2022, the ratio rose again, reaching 5.08 in 2023 and maintaining a similar level at 5.07 in 2024. The most notable change occurred between 2024 and 2025, with the P/S ratio climbing to 7.25. This indicates that the market valuation relative to sales increased significantly in the latest year, potentially reflecting heightened investor confidence or perceived growth prospects.
- Summary
- Overall, the financial indicators demonstrate growth in both share price and sales per share, with some volatility in the intermediate periods. The strong increase in the price-to-sales ratio in the final period suggests a market re-rating, possibly due to improved expectations about future performance or other corporate developments. The consistent upward trend in sales per share alongside fluctuating valuation multiples points to solid operational performance underpinned by changing market sentiment.
Price to Book Value (P/BV)
Applied Materials Inc., historical P/BV calculation, comparison to benchmarks
| Oct 26, 2025 | Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 792,943,366 | 813,684,638 | 831,067,105 | 844,139,722 | 888,513,248 | 914,344,189 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity (in millions) | 20,415) | 19,001) | 16,349) | 12,194) | 12,247) | 10,578) | |
| Book value per share (BVPS)2 | 25.75 | 23.35 | 19.67 | 14.45 | 13.78 | 11.57 | |
| Share price1, 3 | 259.21 | 169.35 | 161.95 | 104.73 | 146.15 | 88.30 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 10.07 | 7.25 | 8.23 | 7.25 | 10.60 | 7.63 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | — | 3.15 | 4.85 | 2.32 | 19.21 | 17.77 | |
| Analog Devices Inc. | 3.65 | 3.09 | 2.53 | 2.35 | 2.50 | 4.22 | |
| Broadcom Inc. | 19.24 | 15.29 | 21.59 | 10.23 | 10.50 | 7.40 | |
| Intel Corp. | — | 0.85 | 1.75 | 1.15 | 2.05 | 2.84 | |
| KLA Corp. | 25.73 | 28.07 | 23.25 | 40.05 | 15.98 | 11.83 | |
| Lam Research Corp. | 13.09 | 12.13 | 10.58 | 10.10 | 13.64 | 10.55 | |
| Micron Technology Inc. | 3.89 | 2.51 | 1.74 | 1.15 | 1.79 | 1.50 | |
| NVIDIA Corp. | 40.38 | 39.25 | 26.03 | 24.95 | 20.14 | 15.49 | |
| Qualcomm Inc. | 9.08 | 7.31 | 5.72 | 7.00 | 15.59 | 24.00 | |
| Texas Instruments Inc. | — | 9.86 | 8.57 | 11.33 | 11.87 | 17.02 | |
| P/BV Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 9.25 | 6.44 | 5.18 | 6.24 | 6.15 | |
| P/BV Ratio, Industry | |||||||
| Information Technology | — | 13.29 | 11.49 | 10.46 | 12.54 | 11.12 | |
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.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 20,415,000,000 ÷ 792,943,366 = 25.75
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 259.21 ÷ 25.75 = 10.07
5 Click competitor name to see calculations.
The analysis of the financial data over the six-year period reveals notable fluctuations and trends in the company's share price, book value per share (BVPS), and price-to-book value (P/BV) ratio.
- Share Price
- The share price shows an overall upward trend, increasing from $88.30 in October 2020 to $259.21 in October 2025. This represents a significant appreciation in market value over the period, with some volatility observed, particularly a decrease from $146.15 in October 2021 to $104.73 in October 2022, followed by substantial growth thereafter.
- Book Value Per Share (BVPS)
- The BVPS exhibits steady growth throughout the examined years, rising from $11.57 in October 2020 to $25.75 in October 2025. This indicates consistent accumulation of net assets or retained earnings, reflecting an improving underlying book value per share.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio displays considerable variability. The ratio peaked at 10.60 in October 2021, declined to 7.25 in October 2022, and fluctuated moderately thereafter, ending at 10.07 in October 2025. Despite the increases in both share price and BVPS, the variations in P/BV suggest changing market perceptions of the company’s valuation relative to its book value.
In summary, the company experienced significant share price appreciation alongside solid and steady growth in book value per share. The P/BV ratio's fluctuations highlight periods of varying investor sentiment and valuation multiples, with a high valuation maintained by the end of the period, indicating confidence in the company’s future prospects or growth potential as perceived by the market.