Applied Materials

Applied Materials EV/EBIT

The EV/EBIT (Enterprise Value to EBIT) of Applied Materials (AMAT) as of Oct 31, 2026 is 34.20. In the previous year, EV/EBIT (Enterprise Value to EBIT) was 36.03 — a change of -5.09% (lower).

EV/EBIT

34.20

YoY

-5.09%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of Applied Materials is 2025 34.20 . EV/EBIT (Enterprise Value to EBIT) of Applied Materials was 2024 36.03 . It decreases by -5.09% lower compared to the previous year.

The Applied Materials EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

EV/EBIT
Date
EV/EBIT
Jan 1, 2019
84.62 USD
Jan 1, 2020
64.95 USD
Jan 1, 2021
41.15 USD
Jan 1, 2022
36.40 USD
Jan 1, 2023
37.04 USD
Jan 1, 2024
36.03 USD
Jan 1, 2025
34.20 USD
Jan 1, 2026 (e)
27.10 USD
The Applied Materials EV/EBIT history
YEAREV/EBITYoY
est27.10-20.76%
34.20-5.09%
36.03-2.71%
37.04+1.75%
36.40-11.54%
41.15-36.64%
64.95-23.25%
84.62+34.06%
63.12-12.36%
72.02-45.33%
131.73-21.33%
167.45-10.22%
186.50+272.93%
50.01+291.93%
12.76+114.81%
5.94-56.64%
13.70-129.02%
-47.21-559.69%
10.27-3.93%
10.69-46.39%
19.94—

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Applied Materials Valuation

Details

Historical Valuation Multiples

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Price-to-Earnings Ratio (P/E)

The P/E ratio divides Applied Materials's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Applied Materials's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Applied Materials's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Applied Materials grows earnings faster than its peers.

Applied Materials Stock analysis

What does Applied Materials do? Applied Materials Inc. is a technology company specializing in the manufacturing of equipment, materials, and services for the semiconductor and flat panel display industries. The company was founded in 1967 by Michael A. McNeilly and other former employees of Hewlett-Packard. Since then, Applied Materials has expanded rapidly through the acquisition of companies like Varian Associates and KLA-Tencor. Today, it is headquartered in Santa Clara, California and employs approximately 21,000 people worldwide. The business model of Applied Materials revolves around providing innovative process, material, and inspection solutions that improve the performance and efficiency of semiconductor and flat panel display manufacturing. This helps customers in the electronics industry produce products with higher performance and lower power consumption. Applied Materials operates in four main segments: Semiconductor Systems, Applied Global Services, Display and Adjacent Markets, and Energy and Environmental Solutions. The Semiconductor Systems segment encompasses equipment for the production of memory, logic, and imaging chips, as well as microprocessors. Examples include ion implantation devices for altering the electrical properties of semiconductors, and chemical vapor deposition systems that enable uniform coating of surfaces. The Applied Global Services segment offers technology services and support for the commissioning and operation of production facilities. The company also provides comprehensive technical training and installation and maintenance support for its equipment. The Display and Adjacent Markets segment includes equipment for the production of flat panel displays, smartphones, and tablets, as well as other electronic applications. This segment provides solutions to reduce manufacturing costs, increase efficiency, and improve the quality of displays. The Energy and Environmental Solutions segment offers technological solutions to improve the energy efficiency and environmental sustainability of buildings, vehicles, and general infrastructure. This includes energy efficiency solutions such as power optimization, solar panels, and energy management systems, as well as water technologies to combat water scarcity and pollution. Applied Materials offers a wide range of products and services that enable customers to increase productivity, reduce costs, and minimize environmental impact. These include wafer-based solar cells, 3D memory, OLED displays, and semiconductor equipment. In summary, Applied Materials Inc. plays a significant role in the electronics industry. The company offers a broad range of products and solutions that contribute to the productivity, efficiency, and environmental sustainability of the semiconductor and flat panel display industries. Through consistent investment in research and development and through acquisitions, Applied Materials Inc. keeps pace with rapid technological advancements. Applied Materials is one of the most popular companies on Eulerpool.

Frequently Asked Questions about Applied Materials stock

EV/EBIT (Enterprise Value to EBIT) of Applied Materials is 34.20 in 2025.

EV/EBIT (Enterprise Value to EBIT) of Applied Materials changed from 36.03 to 34.20, representing a -5.09% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of EV/EBIT (Enterprise Value to EBIT) Applied Materials since 2006 – with annual values, charts, and detailed analysis.

The EV/EBIT ratio measures a company's enterprise value relative to its operating earnings. It accounts for debt, making it useful for comparing companies with different capital structures.

EV/EBIT = Enterprise Value / Earnings Before Interest and Taxes

To evaluate EV/EBIT (Enterprise Value to EBIT)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for EV/EBIT (Enterprise Value to EBIT).

A 'good' varies by industry and company stage. On Eulerpool, you can compare EV/EBIT (Enterprise Value to EBIT)'s Applied Materials with sector peers and the industry average to assess whether it is attractive.

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Valuation — Applied Materials

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