Applied Materials, Inc. (AMAT) DCF Valuation
A discounted-cash-flow model values Applied Materials, Inc. (AMAT) at about $131.94 (TGM base case). Today's price of $499.21 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $499.21, the market is pricing in roughly +23.3%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +9.0%. The price is betting on acceleration above its track record.
Current Price
$499.21
Fair-Value Range
$131.94
Market-Implied Growth
+23.3%/yr
vs +9.0% 5Y actual
AMAT DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $6.3B · 0.79B shares · net cash $686.0M
Estimated Fair Value
$131.94
-73.6% vs $499.21
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $499.21; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $164 | $172 | $182 | $194 | $208 |
| 9.0% | $141 | $146 | $153 | $161 | $170 |
| 10.0% | $123 | $127 | $132 | $137 | $143 |
| 11.0% | $110 | $112 | $116 | $120 | $124 |
| 12.0% | $98.43 | $101 | $103 | $106 | $109 |