Is Applied Materials, Inc. (AMAT) Undervalued?
Based on the current stock price of $261.90 and a P/E ratio of 30.21,Applied Materials, Inc. has a PEG ratio of 32.14.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 32.14, AMAT appears to be potentially overvalued relative to its growth rate of 0.94%.
Based on a PEG ratio of 18.42 (adjusted for dividends).
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How we analyzed AMAT
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 30.21and dividing it by the annual growth rate of 0.94%.
PEG = 30.21 (P/E) ÷ 0.94 (Growth) = 32.14
Frequently Asked Questions about AMAT
What is the current PEG Ratio for Applied Materials, Inc. (AMAT)?+
The current PEG Ratio for Applied Materials, Inc. is 32.14. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is AMAT stock undervalued right now?+
Based on the PEG ratio of 32.14, Applied Materials, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for AMAT?+
The PEGY ratio for Applied Materials, Inc. is 18.42. This metric accounts for dividend yield (0.70%), providing a more complete valuation picture.