Is Applied Materials, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Applied Materials, Inc. has moved from expensive to fair. The company is currently fairly valued, with a P/E ratio of 46, a Price to Book Value of 16.90, and an EV to EBITDA ratio of 36.59. In comparison to peers, Lam Research Corp. has a higher P/E ratio of 57.14, while Parker-Hannifin Corp. is at 37.22, indicating that Applied Materials is positioned competitively within its industry.
The stock has performed well against the S&P 500, with a year-to-date return of 38.34% compared to the index's 13.30%. This strong performance reinforces the narrative that the stock is fairly valued given its growth potential and current market standing.