AMATNEUTRAL

AMAT EV/EBITDA Analysis

19.3x

Higher than 51% of Technology sector peers

Updated 3029h ago·SEC filings & market data

Key Takeaway

The current EV/EBITDA of 19.2x means that Applied Materials’ enterprise value (market cap plus debt minus cash) is 19.2 times its earnings before interest, taxes, depreciation, and amortization — a common measure of valuation relative to operating cash flow.

Sector Performance

51th percentile

AMAT

19.3x

Sector Median

19.1x

Sector Avg

44.5x

📊

Deep Analysis

This is below the sector median of 24.2x, placing the company at the 43rd percentile among its technology peers, indicating it is valued slightly lower than most. No trend information is available: the year-over-year change, quarter-over-quarter change, and last 8 quarters of data are all listed as N/A, so there is no directional signal from this metric. The combination of a below-median valuation with no historical trend means the current level neither signals a clear buying opportunity nor a warning of overvaluation, but it does suggest the stock is not expensive compared to its sector. This neutral positioning aligns with the overall NEUTRAL verdict, as the metric neither strongly supports nor contradicts it — it merely confirms the stock is trading near the middle of its peer group without momentum.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AMAT?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does AMAT's EV/EBITDA compare to its sector?

AMAT's EV/EBITDA of 19.3x compares to a Technology sector median of 19.1x, placing it in the 51th percentile.

Who are AMAT's closest peers by EV/EBITDA?

The closest Technology peers by EV/EBITDA include: MSFT (18.9x), CRM (18.5x), SQ (18.2x), ADI (24.2x), APH (24.5x).

📚

Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.