Applied Materials Inc PEG Ratio
Data as of August 04, 2026
PEG Ratio
1.01
PE Ratio (TTM)
48.36
EPS (TTM)
$10.64
Sector
Semiconductors
How It's Calculated
1.01 = 48.36 ÷ Growth Rate
What This Means
Applied Materials Inc's PEG ratio of 1.01 is in the fairly valued range. The stock's PE ratio is roughly in line with its expected earnings growth rate.
About Applied Materials Inc
Applied Materials Inc (AMAT) operates in the Semiconductors sector, specifically in Semiconductors. With a market capitalization of about $403.07B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $518.21, within a 52-week range of $154.47 to $739.67 (-29.9% from the high, +235.5% from the low). Beta of 1.61 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 29.3%, signaling a strong profit margin relative to many peers.
Understanding This Metric
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Applied Materials Inc, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Semiconductors names on our S&P 100 coverage, Applied Materials Inc's PEG ratio of 1.01 can be compared with peers such as NVDA (0.35), AVGO (0.43), MU (0.12). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Semiconductors stocks.
Key Takeaways
- AMAT is grouped in the Semiconductors sector for peer comparisons.
- Recent beta of 1.61 suggests higher-than-market price sensitivity.
- Trailing profit margin of 29.3% provides context for how much earnings support the headline multiple.
Related Tools & Guides
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Frequently Asked Questions
What is AMAT's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. Applied Materials Inc's PEG of 1.01 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG near 1.01 is in a moderate zone; growth and PE are roughly balanced on this snapshot.
What are limitations of PEG for AMAT?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Semiconductors peers — not as a standalone verdict.
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