Amid the topmost stocks in today’s market is Applied Materials, Inc. (NASDAQ:AMAT). Applied Materials, Inc. had a market cap of 21787.5, indicating that it has a good hold on the market value of the shares outstanding. The current market cap of Applied Materials, Inc. exhibits the basic determinant of asset allocation and risk-return parameters for its stocks.
The P/E of Applied Materials, Inc. is currently valued at 16.93 allowing its investors to analyze the company’s stock valuation and its shares relative to the income of the company that it makes. With the constructive P/E value of Applied Materials, Inc., the investors are able to forecast the positive earnings growth of the company.
The forward P/E of Applied Materials, Inc. is at 12.51 signifying the uses of estimated net earnings over the next 12 months. Investors will be getting a good grip in comparing the current earnings of the company to estimated future earnings.
With its low price-to-sales ratio of 2.26, the company is evidently a better investment since the investors are paying a lower amount for each unit of sales. However, the company sales do not necessarily expose the entire picture, as it might be unprofitable with a low P/S ratio.
The price-to-book ratio of 2.94 for Applied Materials, Inc. (NASDAQ:AMAT) implies that investors are highly hopeful for the organization to create more value from the given set of assets. The market value of the firm’s assets are considerably higher in contrast to their accounting value. The current P/B amount of Applied Materials, Inc. best indicates the value approach in differentiating good from the bad. The ratio also provides a clue to how much investors are paying for what would be left if the company went bankrupt immediately.
The target payout ratio for Applied Materials, Inc. is currently measuring at 35.40%, outlining what size the company’s dividends should be. It also demonstrates a stable dividend policy for Applied Materials, Inc. connected to the long-run, with viable earnings.
The EPS for Applied Materials, Inc. is valued at 1.12 with an EPS growth this year at 28.70%. The company’s EPS growth for the following year is valued at 25.70%, indicating an EPS value of 9.90% for the past 5 years, and an EPS value of 15.27% for the coming five years.
Applied Materials, Inc.’s sales for the past 5 years rolls at 0.20%, exhibiting an EPS growth from quarter-to-quarter at 33.30%. The sales growth of the company is 4.60% at the moment, indicating the average sales volume of the company’s products and services that have typically improved year-to-year.
Company’s existing stock price is at 18.78 with a change in price of -0.95%. As of now, the target price for the company is measuring at 21.14. Applied Materials, Inc.’s ROA is rolling at 10.00%, following the ROI of 12.10%. Quick and current ratio is valued at 2 and 2.4 respectively.