Question 1

What is Applied Materials's P/FCF ratio?

Accepted Answer

Applied Materials (AMAT) P/FCF ratio is 74.2× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Applied Materials?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Applied Materials specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is Applied Materials's P/FCF ratio high or low?

Accepted Answer

Applied Materials's P/FCF ratio of 74.2× is above its own 5-year average of 24.3× and above the sector median of 21.8×. That places the current reading at the 98th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Applied Materials's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Applied Materials (AMAT) P/FCF ratio has ranged from a low of 7.0× in 2012 to a high of 331.1× in 2002. The 5-year average is 24.3× and the 5-year median is 21.6×.

Question 7

What was Applied Materials's P/FCF ratio in 2025?

Accepted Answer

Applied Materials (AMAT) P/FCF ratio at the end of 2025 was 32.2×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Applied Materials's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$184B	$5.7B	32.2×	+11.9×	Oct 26, 2025
2024	$152B	$7.49B	20.3×	+5.9×	Oct 27, 2024
2023	$110B	$7.59B	14.4×	-1.9×	Oct 29, 2023
2022	$75.4B	$4.61B	16.3×	-9.9×	Oct 30, 2022
2021	$125B	$4.77B	26.2×	+10.2×	Oct 31, 2021
2020	$54.4B	$3.38B	16.1×	-2.6×	Oct 25, 2020
2019	$52.4B	$2.81B	18.7×	+9.1×	Oct 27, 2019
2018	$30.3B	$3.17B	9.6×	-8.6×	Oct 28, 2018
2017	$59.5B	$3.26B	18.2×	+4.0×	Oct 29, 2017
2016	$31.4B	$2.21B	14.2×	-6.3×	Oct 30, 2016
2015	$19.4B	$946M	20.5×	+4.1×	Oct 25, 2015
2014	$25.7B	$1.56B	16.5×	-34.4×	Oct 26, 2014
2013	$21.7B	$426M	50.9×	+43.2×	Oct 27, 2013
2012	$13B	$1.69B	7.7×	+0.4×	Oct 28, 2012
2011	$16.3B	$2.22B	7.3×	-3.3×	Oct 30, 2011
2010	$16.6B	$1.56B	10.6×	-194.0×	Oct 31, 2010
2009	$17.2B	$84.2M	204.6×	+193.9×	Oct 25, 2009
2008	$15.3B	$1.42B	10.8×	-3.0×	Oct 26, 2008
2007	$26.7B	$1.94B	13.7×	-1.6×	Oct 28, 2007
2006	$26.9B	$1.76B	15.3×	-10.4×	Oct 29, 2006
2005	$26.9B	$1.05B	25.7×	+6.9×	Oct 30, 2005
2004	$27B	$1.44B	18.8×	-45.3×	Oct 31, 2004
2003	$34.4B	$536M	64.1×	-267.0×	Oct 26, 2003
2002	$24.9B	$75.1M	331.1×	—	Oct 27, 2002


Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
Strategy (MSTR)	9.2×
Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Science Applications International (SAIC)	7.0×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×
IBM (IBM)	0.0×

P/FCF Ratio for Applied Materials (AMAT) 2002-2026

P/FCF Ratio daily chart for Applied Materials (AMAT)

Historical P/FCF Ratio for Applied Materials (AMAT) from 2002 to 2025

About P/FCF Ratio at Applied Materials (AMAT)

Applied Materials P/FCF Ratio by Year

Applied Materials P/FCF Ratio 2025: 32.2×

Applied Materials P/FCF Ratio 2024: 20.3×

Applied Materials P/FCF Ratio 2023: 14.4×

Applied Materials P/FCF Ratio 2022: 16.3×

Applied Materials P/FCF Ratio 2021: 26.2×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Applied Materials (AMAT) Key Financials