| Company name | Applied Materials, Inc. |
| Stock ticker | AMAT |
| Live stock price | [stckqut]AMAT[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $67.79 |
| Target stock price (averages with growth) | $75.67 |
| Target stock price (averages with no growth) | $35.26 |
| Target stock price (manual assumptions) | $67.3 |
The following company description is from Google Finance: http://www.google.com/finance?q=amat
Applied Materials, Inc. provides manufacturing equipment, services and software to the global semiconductor, display and related industries. The Company’s segments are Semiconductor Systems, which includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation; Applied Global Services, which provides integrated solutions to optimize equipment and fab performance and productivity; Display and Adjacent Markets, which includes products for manufacturing liquid crystal displays, organic light-emitting diodes, upgrades and roll-to-roll Web coating systems and other display technologies for televisions, personal computers, smart phones and other consumer-oriented devices, and Corporate and Other segment, which includes revenues from products, as well as costs of products sold for fabricating solar photovoltaic cells and modules, and certain operating expenses.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Applied Materials, Inc.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Applied Materials, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $43.96
- Growth: 0.2
- Current EPS (TTM): $2.42
- P/E: 18
- Future EPS Calc: $6.02
- Future Stock Price Calc: $108.39
- Target stock price: $67.3
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I hope that this makes you a Confident Investor.