Applied Materials Inc. (NASDAQ:AMAT)

Price to Earnings (P/E) Ratio Trend

The P/E ratio demonstrates a general decline from early 2021 to mid-2022, falling from 27.11 to a low of 13.55. This indicates a decrease in market valuation relative to earnings during this period. From late 2022 through early 2024, there is a noticeable upward resurgence, reaching a peak of 24.7. Subsequently, the ratio experiences some volatility but maintains a relatively elevated level, ending with a sharp increase to 29.37 in late 2025. This pattern suggests improved investor confidence or earnings growth expectations after the mid-2022 trough, followed by increased market valuation and some volatility in the last periods.

Price to Operating Profit (P/OP) Ratio Trend

This ratio closely mirrors the trend observed in the P/E ratio, beginning with a decline from 22.7 at the start of 2021 to 11.35 by late 2022. This decline signals reduced market pricing relative to operating profit over that period. From early 2023 onward, the P/OP ratio significantly recovers, peaking at 23.58 in early 2024. After this peak, the ratio decreases but again surges sharply to 24.8 in late 2025. The trend aligns with the narrative of market revaluation and possibly improving operating profitability expectations in the latter periods.

Price to Sales (P/S) Ratio Trend

The P/S ratio declines steadily from 5.74 in early 2021 to a minimum of 3.43 by late 2022, reflecting a decrease in market price relative to sales. From early 2023, the ratio begins to climb consistently, reaching 6.81 in early 2024. Although it slightly decreases afterward, it rises notably to 7.25 by late 2025. This pattern indicates strengthened market valuation relative to sales with a recovery phase that starts after late 2022 and an ongoing upward momentum toward late 2025.

Price to Book Value (P/BV) Ratio Trend

The P/BV ratio shows a decrease from 9.11 in early 2021 to a low of 6.53 near mid-2025, with some fluctuations throughout the period. A partial recovery is observed in early 2024, when the ratio peaked at 9.92, but the general trend over the long term is downward until the sharp rise to 10.07 in late 2025. This indicates that the market’s valuation of book value weakened for most of the period but ultimately strengthened considerably by the end of the observed timeframe.

Summary of Financial Market Valuation Ratios

Across all four valuation multiples—P/E, P/OP, P/S, and P/BV—there is a consistent narrative of declining market valuation relative to key financial metrics from 2021 through approximately late 2022. From that point forward, each ratio demonstrates a recovery and upward trend, often reaching, or even exceeding, earlier highs by late 2025. This suggests an overall return of investor confidence, improved operating and earnings performance expectations, or other market factors positively influencing valuation. Notably, late 2025 features sharp increases across all ratios, implying a significant shift in market perception or company performance at that time.

Share Price

The share price exhibited significant fluctuations over the analyzed period. Initially, it rose from $113.93 to a peak of $146.15 by October 31, 2021, followed by a decline to approximately $104.73 by October 30, 2022. Subsequently, the price experienced a strong upward trend, reaching a high of $217.95 in April 2024. After this peak, the price decreased to $159.84 around July 2025, before a sharp increase to $259.21 in October 2025. This pattern indicates a volatile market valuation with periods of rapid appreciation and notable corrections.

Earnings per Share (EPS)

EPS showed a steady upward trajectory from $4.20 at the beginning of 2021 to a high of $9.04 in July 2024. There were minor fluctuations, including a slight dip to $7.81 in January 2025. Despite this, EPS generally maintained its growth trend, ending at $8.83 by October 2025. The consistent increase in EPS suggests sustained profitability improvements over the period.

Price-to-Earnings Ratio (P/E)

The P/E ratio demonstrated considerable variability. Initially high at 27.11 in early 2021, it declined steadily to a low of 13.55 by October 2022, reflecting a period where the share price decreased faster than earnings growth. From then, the ratio increased gradually, peaking at 24.7 in April 2024, indicating a higher market valuation relative to earnings. Following this peak, the ratio briefly declined before a marked rise to 29.37 by October 2025, suggesting elevated market expectations or potentially overvaluation at the end of the period.

Summary

The data reveals a company experiencing earnings growth accompanied by significant share price volatility. While earnings per share steadily increased, the share price saw cyclical peaks and troughs, resulting in corresponding fluctuations in the P/E ratio. The latter's pattern suggests changing market sentiment, with periods of both conservative and optimistic valuation. The notable rise in share price and P/E towards the end of the timeline indicates heightened investor confidence or speculative pressures, which may warrant closer monitoring for potential adjustments.

The analysis of the quarterly financial metrics reveals several notable trends over the examined periods.

Share Price Trends

The share price exhibited variability throughout the timeframe. Initially, the price increased from approximately $114 to a peak near $146 within the first year. Subsequently, a decline occurred, reaching a lower point close to $105. The price rebounded afterwards, reaching a high above $200 during the early 2024 quarters, before experiencing new fluctuations. A significant upward spike was observed towards the end of the period, with the price rising sharply to approximately $259. This movement suggests periods of both market optimism and correction, with an overall upward trend over the entire span.

Operating Profit Per Share (OPPS) Patterns

Operating profit per share showed a steady and consistent upward trajectory. Beginning at approximately $5.02, it rose incrementally each quarter, surpassing $10 in the final periods. This steady increase indicates improving operational profitability on a per-share basis, reflecting effective cost management or revenue growth leading to enhanced earnings performance.

Price to Operating Profit Ratio (P/OP)

The Price to Operating Profit ratio demonstrated significant fluctuations aligning inversely with share price movements and operations earnings. Initially, the ratio began at about 22.7, decreasing steadily to around 11.35 as operating profits rose and share price temporarily weakened. From mid-2023 onwards, the ratio increased again, reaching values above 23 during early 2024, suggesting that share prices were rising faster relative to operating profits during this phase. Towards the last dates, the ratio dropped back below 15 before escalating sharply to near 25. The fluctuations in this ratio indicate changes in investor sentiment and market valuation relative to operating profitability.

Overall, the data points to a company experiencing stable growth in underlying profitability while its market valuation exhibits pronounced volatility. The increasing operating profit per share underscores strong operational fundamentals, whereas the movements in share price and P/OP ratio reflect varying market conditions and investor perceptions across the analyzed quarters.

Share Price Trend

The share price shows notable fluctuations over the examined periods. Initially, it increased from approximately 114 USD to a peak near 146 USD by October 2021. Subsequently, a decline occurred through early 2023, bottoming close to 104 US dollars. Starting from mid-2023, the share price surged significantly, reaching a maximum of about 260 USD by October 2025. This latter rise indicates strong market confidence or improved company valuation towards the end of the period.

Sales Per Share Trend

Sales per share exhibited a steady and gradual upward trajectory throughout the timeline. Beginning near 20 USD in early 2021, sales per share consistently increased, reaching above 35 USD by late 2025. This persistent growth suggests improving operational performance or an expanding revenue base on a per-share basis.

Price-to-Sales (P/S) Ratio Trend

The P/S ratio demonstrates more variability compared to other metrics. It started relatively high at around 5.7 in early 2021, then declined to a low near 3.4 by late 2022, reflecting either a decrease in share price relative to sales or an increase in sales driving valuation adjustments. After this low point, the P/S ratio ascended significantly, peaking above 7.2 by late 2025. This pattern corresponds with the sharp rise in share price and modest growth in sales per share during the same period, indicating that investors may be assigning a higher valuation multiple to the company's sales.

Overall Insights

The data reveals an initial phase of share price appreciation followed by a decline, accompanied by continuous growth in sales per share. The P/S ratio's fluctuations reflect these dynamics, dropping when price growth stagnated relative to sales and rising when share prices surged. The strong rise in share price and P/S ratio toward the end of the examined period suggests increased investor optimism or expectations of future profitability beyond what sales growth alone would indicate.

Share Price Trends

The share price demonstrates notable fluctuations over the periods analyzed. Starting from approximately $114 at the beginning of 2021, the price rose to a peak of about $146 by October 2021. Subsequent months saw a decline to just above $104 in late 2022, followed by a recovery and a sharp increase reaching over $217 by April 2024. After this peak, the price retreated somewhat to around $160 by mid-2025 before surging dramatically to $259 by October 2025. This pattern indicates periods of significant volatility with phases of both recovery and rapid growth.

Book Value Per Share (BVPS) Trends

The book value per share shows a steady and consistent upward trend throughout the entire timeline. Beginning at $12.50 in early 2021, BVPS increases gradually, crossing $20 by early 2024 and continuing to rise to nearly $26 by late 2025. This persistent growth reflects improving net asset values on a per-share basis, suggesting strengthening financial stability and retained earnings accumulation over time.

Price-to-Book Value (P/BV) Ratio Trends

The P/BV ratio fluctuates considerably throughout the periods. Initially, the ratio increased from 9.11 to about 10.6 within 2021, indicating growing market valuation relative to book value. Then, the ratio declines steadily to a low point around 6.5 in mid-2025, implying the market price has become more aligned or conservative relative to underlying book value. This is followed by an abrupt spike to above 10 at the final period, driven primarily by the sharp rise in share price. The P/BV ratio movements suggest market sentiment and valuation assessments varied significantly, with occasional overvaluation phases and more conservative price alignment periods.

Summary of Key Observations

Overall, the financial indicators reveal a company with improving book value per share, signaling strengthening fundamentals. The share price exhibits more volatility and sharp swings, reflecting changing investor sentiment or market conditions. The P/BV ratio shifts corroborate these dynamics, highlighting phases where the share price either outpaced or lagged book value growth. The recent surge in share price coupled with a high P/BV ratio indicates heightened market enthusiasm or speculation near the end of the observed timeframe.