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Applied Materials (WBO:AMAT) Shiller PE Ratio : 45.12 (As of Apr. 29, 2024)


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What is Applied Materials Shiller PE Ratio?

As of today (2024-04-29), Applied Materials's current share price is €189.52. Applied Materials's E10 for the quarter that ended in Jan. 2024 was €4.20. Applied Materials's Shiller PE Ratio for today is 45.12.

The historical rank and industry rank for Applied Materials's Shiller PE Ratio or its related term are showing as below:

WBO:AMAT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 19.21   Med: 33.42   Max: 70.06
Current: 44.33

During the past years, Applied Materials's highest Shiller PE Ratio was 70.06. The lowest was 19.21. And the median was 33.42.

WBO:AMAT's Shiller PE Ratio is ranked worse than
67.79% of 503 companies
in the Semiconductors industry
Industry Median: 28 vs WBO:AMAT: 44.33

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Applied Materials's adjusted earnings per share data for the three months ended in Jan. 2024 was €2.212. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €4.20 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Applied Materials Shiller PE Ratio Historical Data

The historical data trend for Applied Materials's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Applied Materials Shiller PE Ratio Chart

Applied Materials Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.80 30.60 53.98 25.36 30.16

Applied Materials Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.19 28.65 36.59 30.16 35.81

Competitive Comparison of Applied Materials's Shiller PE Ratio

For the Semiconductor Equipment & Materials subindustry, Applied Materials's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Applied Materials's Shiller PE Ratio Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Applied Materials's Shiller PE Ratio falls into.



Applied Materials Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Applied Materials's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=189.52/4.2
=45.12

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Applied Materials's E10 for the quarter that ended in Jan. 2024 is calculated as:

For example, Applied Materials's adjusted earnings per share data for the three months ended in Jan. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=2.212/129.4194*129.4194
=2.212

Current CPI (Jan. 2024) = 129.4194.

Applied Materials Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201404 0.152 100.023 0.197
201407 0.177 100.520 0.228
201410 0.181 100.176 0.234
201501 0.241 98.604 0.316
201504 0.268 99.824 0.347
201507 0.245 100.691 0.315
201510 0.249 100.346 0.321
201601 0.230 99.957 0.298
201604 0.255 100.947 0.327
201607 0.416 101.524 0.530
201610 0.508 101.988 0.645
201701 0.611 102.456 0.772
201704 0.709 103.167 0.889
201707 0.737 103.278 0.924
201710 0.774 104.070 0.963
201801 0.123 104.578 0.152
201804 0.864 105.708 1.058
201807 0.865 106.324 1.053
201810 0.774 106.695 0.939
201901 0.701 106.200 0.854
201904 0.623 107.818 0.748
201907 0.544 108.250 0.650
201910 0.678 108.577 0.808
202001 0.865 108.841 1.029
202004 0.754 108.173 0.902
202007 0.792 109.318 0.938
202010 1.046 109.861 1.232
202101 1.002 110.364 1.175
202104 1.195 112.673 1.373
202107 1.582 115.183 1.778
202110 1.629 116.696 1.807
202201 1.768 118.619 1.929
202204 1.611 121.978 1.709
202207 1.819 125.002 1.883
202210 1.878 125.734 1.933
202301 1.875 126.223 1.922
202304 1.696 127.992 1.715
202307 1.672 128.974 1.678
202310 2.254 129.810 2.247
202401 2.212 129.419 2.212

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Applied Materials  (WBO:AMAT) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Applied Materials Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Applied Materials's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Applied Materials (WBO:AMAT) Business Description

Address
3050 Bowers Avenue, P.O. Box 58039, Santa Clara, CA, USA, 95052-8039
Applied Materials is the largest semiconductor wafer fabrication equipment, or WFE, manufacturer in the world. Applied Materials has a broad portfolio spanning nearly every corner of the WFE ecosystem. Specifically, Applied Materials holds a market share leadership position in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.