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Applied Materials Inc (AMAT) — WACC Analysis

WACC Breakdown

Applied Materials Inc (AMAT) has a weighted average cost of capital (WACC) of 11.6%. The cost of equity is 11.8%, derived from a beta of 1.83 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.3%. The capital structure is 98.1% equity and 1.9% debt.

Interpretation

A WACC of 11.6% is moderate, reflecting the market's balanced risk assessment of Applied Materials Inc.

Investors can compare AMAT's WACC of 11.6% against industry peers to gauge its relative financing costs. A beta of 1.83 reflects the stock's volatility relative to the broader market.

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VALUATION

AMAT WACC: 11.60% for Applied Materials Inc

Current inputs imply a 11.76% cost of equity and a 4.23% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Applied Materials Inc Common Stock (AMAT) WACC Results
Weighted Average Cost of Capital
11.60%
Cost of Equity
11.76%
Risk-Free Rate5.19%
Beta1.83
Market Risk Premium4.23%
Cost of Debt
3.34%
Pre-Tax Cost of Debt4.23%
Tax Rate21.00%
Tax Shield0.89%
Capital Structure
Equity: 98.12%($341.25B)
Debt: 1.88%($6544.00M)
Equity Component
11.54%
98.12% × 11.76%
Debt Component
0.06%
1.88% × 3.34%

Applied Materials Inc (AMAT) WACC in context

Applied Materials Inc (AMAT) currently screens with an estimated WACC of 11.60%. That blends a 11.76% cost of equity, a 4.23% pre-tax cost of debt, and a 98.12% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What AMAT WACC implies

A 11.60% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates AMAT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.83 and equity accounts for 98.12% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.