Stock fact sheet · data as of
Applied Materials, Inc. (AMAT): fair value, margin of safety and Wheel Score
Ticker symbol AMAT · Technology · Semiconductors · United States · Growth
Is AMAT undervalued?
At 369.40 (close of 5 Nov 2026), AMAT trades 51% over the GLS average fair value of 244.93, with 1 of 8 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between DDM (29.13) and Graham Growth (652.83). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, AMAT is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 13, growth score 49, out of 100).
Nine valuation models for AMAT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 92.06 | -75% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 652.83 | +77% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 284.23 | -23% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 348.82 | -6% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 199.37 | -46% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 223.34 | -40% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 29.13 | -92% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 129.68 | -65% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 6.30 | -98% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 659.83 | +79% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Applied Materials, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 9.0/10 puts AMAT among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are high - ROIC 25.5%, ROE 34.3%, ROA 19.3% - with debt at 0.35 times equity and a free-cash-flow yield of 1.9%.
The dividend yield is 0.54% with a payout ratio of 16% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Semiconductor Systems 77%, Applied Global Services 20%, Corporate And Reconciling Items 3% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 7/10 on the GLS smart-money scales; the last recorded Congressional buy was on 6 Aug 2026.
| Piotroski F-score | 6 / 9 | ROIC | 25.5% |
|---|---|---|---|
| GLS Moat | 9.0 / 10 | ROE | 34.3% |
| Debt / equity | 0.35 | ROA | 19.3% |
| Free-cash-flow yield | 1.9% | Payout ratio | 16% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 7 / 10 |
Wheel Score 47: Weak
With a Wheel Score of 47 Applied Materials, Inc. sits in the Weak band. It fails filter 3, below fair value - trades 51% above our fair value; Value (weak) is its weakest part.
Implied volatility is 64% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. The option chain is deep: 210,808 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 7.9M shares a day on a market cap of $293.2B, with a beta of 1.66 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 51% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 51% above fair value | |
| Premium | Strong | implied volatility 64% | |
| Moat | Strong | moat 9.0/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 95/100 | |
| Option trading | Strong | 24,587 contracts a day, 210,808 open interest | |
| Stability | Good | beta 1.66, $293.2B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Applied Materials, Inc. reports earnings on 12 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 19 Nov 2026 (0.5300 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Applied Materials, Inc. by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TXN Texas Instruments Incorporated | 311.49 | 135.32 | -130% | 51Fair | $284.6B |
| INTC Intel Corp. | 58.27 | 19.05 | -206% | 38Weak | $309.7B |
| LRCX Lam Research Corporation | 221.43 | 123.45 | -79% | 49Weak | $277.1B |
| ARM Arm Holdings plc American Depositary Shares | 191.80 | 32.79 | -485% | 36Weak | $204.8B |
| ADI Analog Devices, Inc. | 406.24 | 138.81 | -193% | 48Weak | $196.8B |
| KLAC KLA Corporation | 149.79 | 72.63 | -106% | 52Fair | $195.2B |
| QCOM QUALCOMM Incorporated | 173.19 | 265.30 | +35% | 49Weak | $184.9B |
| ASML ASML Holding N.V. | 1,496.30 | 1,187.25 | -26% | 53Fair | $576.7B |
| MRVL Marvell Technology, Inc. | 159.80 | 71.58 | -123% | 36Weak | $139.9B |
| AMD Advanced Micro Devices, Inc. | 488.78 | 137.76 | -255% | 43Weak | $797.9B |
| MU Micron Technology, Inc. | 795.23 | 1,637.28 | +51% | 89Prime | $899.7B |
| SKHY SK hynix Inc. | 143.07 | 666.57 | +79% | 84Good | $1.02T |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about AMAT
Is AMAT undervalued right now?
No: at 369.40 the stock trades 51% above the GLS average fair value of 244.93 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of AMAT and what does it mean?
AMAT scores 47 out of 100 (Weak) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for AMAT?
244.93 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Applied Materials, Inc. report earnings next?
The next earnings report is due on 12 Nov 2026 (after the close), 7 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does AMAT have listed options, and how liquid are they?
Yes. The nightly snapshot found 910 listed contracts with 210,808 open interest across all expiries and implied volatility of 64% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.