Applied Materials
Financial ratios & Valuation

Forward Multiples (2025 – 2027)

2025202520262027
Price/Earnings ratio
16.9518.3515.1614.25
Price/Sales ratio
4.865.154.464.28
Earnings per Share (EPS)
$9.55$8.82$10.68$11.36

Historical Multiples (2015 – 2024)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TTM Median
Valuation Ratios
Price/Earnings ratio
14.3918.7017.469.5119.7115.0621.5611.7816.0521.3519.1019.10
Price/Sales ratio
2.052.974.121.823.653.165.502.984.155.644.993.65
Price/Book Value ratio
2.604.466.414.606.495.1510.366.306.738.067.216.49
Price/Cash Flow ratio
17.0413.0516.618.3216.4314.3223.3214.2412.6517.6615.8015.80
Price/Free Cash Flow ratio
20.9114.5418.379.9619.0116.1126.5916.6714.4920.4718.1318.13
Price/Earnings Growth ratio
0.590.490.164.34-1.690.410.330.741.793.35-5.900.41
Dividend Yield
2.45%1.37%0.71%1.91%1.44%1.44%0.66%1.13%0.88%0.77%0.91%1.44%
Profitability Indicator Ratios
Gross Profit Margin
40.91%41.67%44.93%45.30%43.71%44.71%47.32%46.51%46.70%47.45%47.46%43.71%
Operating Profit Margin
17.52%19.87%26.60%27.79%22.93%25.37%29.87%30.20%28.86%28.94%28.94%22.93%
Pretax Profit Margin
16.54%18.59%25.66%27.20%22.37%24.21%29.35%29.47%29.09%29.99%29.99%22.37%
Net Profit Margin
14.25%15.89%23.62%19.20%18.52%21.03%25.53%25.30%25.85%26.40%26.40%18.52%
Effective Tax Rate
13.82%14.50%7.96%29.42%17.22%13.13%13.04%14.13%11.14%11.96%11.96%13.13%
Return on Assets
8.99%11.79%17.68%18.64%14.22%16.19%22.79%24.41%22.31%20.85%20.85%14.22%
Return On Equity
18.08%23.84%36.73%48.44%32.94%34.21%48.07%53.50%41.93%37.77%39.07%32.94%
Return on Capital Employed
14.70%19.64%25.27%34.99%22.98%24.39%35.36%40.25%32.76%30.32%30.32%22.98%
Liquidity Ratios
Current Ratio
2.432.293.132.702.292.99N/AN/AN/AN/A2.502.29
Quick Ratio
1.951.732.421.721.512.121.851.351.821.861.861.51
Cash ratio
1.260.931.210.840.701.200.780.270.830.940.940.70
Days of Sales Outstanding
65.7176.8458.7051.2365.9866.0181.5688.3474.8670.2970.2965.98
Days of Inventory outstanding
117.23118.50133.59143.97154.22149.83129.45156.98147.85138.57138.60149.83
Operating Cycle
182.94195.35192.30195.21220.21215.84211.02245.33222.72208.86208.89215.84
Days of Payables Outstanding
42.0846.9943.0838.5242.5243.1344.2246.4438.17123.2040.1443.13
Cash Conversion Cycle
140.86148.35149.21156.68177.68172.70166.80198.88184.5485.66168.75172.70
Debt Ratios
Debt Ratio
0.290.220.270.290.270.240.210.200.180.180.180.24
Debt Equity Ratio
0.590.460.560.770.640.510.440.440.340.320.320.51
Long-term Debt to Capitalization
0.300.300.360.430.360.330.300.300.250.220.220.33
Total Debt to Capitalization
0.370.310.360.430.390.330.300.300.250.240.240.33
Interest Coverage Ratio
16.4313.8819.8719.1914.1318.18N/AN/AN/AN/A31.8514.13
Cash Flow to Debt Ratio
0.250.740.680.710.610.690.990.981.561.381.380.61
Company Equity Multiplier
2.012.022.072.592.312.112.102.191.871.811.812.11
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.120.220.240.210.220.220.230.200.320.310.310.22
Free Cash Flow / Operating Cash Flow Ratio
0.810.890.900.830.860.880.870.850.870.860.860.88
Cash Flow Coverage Ratio
0.250.740.680.710.610.690.990.981.561.381.380.61
Short Term Coverage Ratio
0.9612.33N/AN/A5.41N/AN/AN/A8710.8510.855.41
Dividend Payout Ratio
35.36%25.79%12.52%18.26%28.49%21.74%14.23%13.37%14.22%16.60%16.60%21.74%