Applied Materials Stock Beta
| AMAT Stock | USD 205.68 2.18 1.05% |
Applied Materials fundamentals help investors to digest information that contributes to Applied Materials' financial success or failures. It also enables traders to predict the movement of Applied Stock. The fundamental analysis module provides a way to measure Applied Materials' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Applied Materials stock.
Applied | Beta |
Applied Materials Company Beta Analysis
Applied Materials' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Applied Materials Beta | 1.58 |
Most of Applied Materials' fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Applied Materials is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Applied Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Applied Materials is extremely important. It helps to project a fair market value of Applied Stock properly, considering its historical fundamentals such as Beta. Since Applied Materials' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Applied Materials' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Applied Materials' interrelated accounts and indicators.
Click cells to compare fundamentals
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Applied Materials has a Beta of 1.583. This is 49.34% higher than that of the Semiconductors & Semiconductor Equipment sector and 42.61% higher than that of the Information Technology industry. The beta for all United States stocks is notably lower than that of the firm.
Applied Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Applied Materials' direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Applied Materials could also be used in its relative valuation, which is a method of valuing Applied Materials by comparing valuation metrics of similar companies.Applied Materials is currently under evaluation in beta category among related companies.
Applied Materials ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Applied Materials' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Applied Materials' managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Applied Materials Institutional Holders
Institutional Holdings refers to the ownership stake in Applied Materials that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Applied Materials' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Applied Materials' value.| Shares | Northern Trust Corp | 2023-12-31 | 9.5 M | Norges Bank | 2023-12-31 | 9.3 M | Nuveen Asset Management, Llc | 2023-12-31 | 8 M | Legal & General Group Plc | 2023-12-31 | 7.5 M | Generation Investment Management Llp | 2023-12-31 | 7.4 M | Ameriprise Financial Inc | 2023-12-31 | 7.2 M | Amvescap Plc. | 2023-12-31 | 7.1 M | Matrix Capital Management Company, Llc | 2023-12-31 | 7.1 M | Ubs Asset Mgmt Americas Inc | 2023-12-31 | 6.9 M | Blackrock Inc | 2023-12-31 | 75.2 M | Vanguard Group Inc | 2023-12-31 | 74.1 M |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Applied Materials will likely underperform.
Applied Fundamentals
| Return On Equity | 0.46 | ||||
| Return On Asset | 0.16 | ||||
| Profit Margin | 0.27 % | ||||
| Operating Margin | 0.29 % | ||||
| Current Valuation | 169.4 B | ||||
| Shares Outstanding | 830.9 M | ||||
| Shares Owned By Insiders | 0.30 % | ||||
| Shares Owned By Institutions | 85.50 % | ||||
| Number Of Shares Shorted | 12.45 M | ||||
| Price To Earning | 14.73 X | ||||
| Price To Book | 9.91 X | ||||
| Price To Sales | 6.52 X | ||||
| Revenue | 26.52 B | ||||
| Gross Profit | 11.99 B | ||||
| EBITDA | 8.47 B | ||||
| Net Income | 6.86 B | ||||
| Cash And Equivalents | 2.58 B | ||||
| Cash Per Share | 3.02 X | ||||
| Total Debt | 5.56 B | ||||
| Debt To Equity | 0.45 % | ||||
| Current Ratio | 2.16 X | ||||
| Book Value Per Share | 20.98 X | ||||
| Cash Flow From Operations | 8.7 B | ||||
| Short Ratio | 2.13 X | ||||
| Earnings Per Share | 8.49 X | ||||
| Price To Earnings To Growth | 2.48 X | ||||
| Target Price | 220.21 | ||||
| Number Of Employees | 34.5 K | ||||
| Beta | 1.58 | ||||
| Market Capitalization | 170.9 B | ||||
| Total Asset | 30.73 B | ||||
| Retained Earnings | 43.73 B | ||||
| Working Capital | 11.78 B | ||||
| Current Asset | 8.35 B | ||||
| Current Liabilities | 3.63 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 1.20 % | ||||
| Net Asset | 30.73 B | ||||
| Last Dividend Paid | 1.28 |
About Applied Materials Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Applied Materials's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Applied Materials using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Applied Materials based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Applied Materials
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Applied Materials position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Applied Materials will appreciate offsetting losses from the drop in the long position's value.Moving together with Applied Stock
| 0.91 | VECO | Veeco Instruments Financial Report 13th of May 2024 | PairCorr |
| 0.87 | TRT | Trio Tech International | PairCorr |
Moving against Applied Stock
| 0.76 | III | Information Services Financial Report 13th of May 2024 | PairCorr |
| 0.72 | ACLS | Axcelis Technologies Financial Report 1st of May 2024 | PairCorr |
| 0.65 | MEI | Methode Electronics Financial Report 27th of June 2024 | PairCorr |
| 0.56 | INTC | Intel Report 25th of April 2024 | PairCorr |
The ability to find closely correlated positions to Applied Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Applied Materials when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Applied Materials - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Applied Materials to buy it.
The correlation of Applied Materials is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Applied Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Applied Materials moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Applied Materials can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Applied Materials Piotroski F Score and Applied Materials Altman Z Score analysis. For more information on how to buy Applied Stock please use our How to Invest in Applied Materials guide.Note that the Applied Materials information on this page should be used as a complementary analysis to other Applied Materials' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Complementary Tools for Applied Stock analysis
When running Applied Materials' price analysis, check to measure Applied Materials' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Applied Materials is operating at the current time. Most of Applied Materials' value examination focuses on studying past and present price action to predict the probability of Applied Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Materials' price. Additionally, you may evaluate how the addition of Applied Materials to your portfolios can decrease your overall portfolio volatility.
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| Fundamental Analysis View fundamental data based on most recent published financial statements |
Is Applied Materials' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Applied Materials. If investors know Applied will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Applied Materials listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.193 | Dividend Share 1.28 | Earnings Share 8.49 | Revenue Per Share 31.662 | Quarterly Revenue Growth (0.01) |
The market value of Applied Materials is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Materials' value that differs from its market value or its book value, called intrinsic value, which is Applied Materials' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Applied Materials' market value can be influenced by many factors that don't directly affect Applied Materials' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Applied Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Materials' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.