Discounted Cash Flow

Applied Materials Inc. /de

AMAT · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $10.8b $1.7b $1.1b 15.9% $1.56
2017 $14.5b (34.3%) $3.4b (99.5%) $-1.2b (-215.9%) 23.6% (48.6%) $3.20 (105.1%)
2018 $17.3b (18.7%) $3.3b (-3.5%) $1.7b (237.1%) 19.2% (-18.7%) $3.27 (2.2%)
2019 $14.6b (-15.3%) $2.7b (-18.3%) $1.3b (-22.0%) 18.5% (-3.5%) $2.89 (-11.6%)
2020 $17.2b (17.8%) $3.6b (33.7%) $2.4b (83.7%) 21.0% (13.6%) $3.95 (36.7%)
2021 $23.1b (34.1%) $5.9b (62.7%) $3.4b (40.3%) 25.5% (21.4%) $6.47 (63.8%)
2022 $25.8b (11.8%) $6.5b (10.8%) $3.9b (13.7%) 25.3% (-0.9%) $7.49 (15.8%)
2023 $26.5b (2.8%) $6.9b (5.1%) $7.0b (79.9%) 25.9% (2.2%) $8.16 (8.9%)
2024 $27.2b (2.5%) $7.2b (4.7%) $5.1b (-27.6%) 26.4% (2.1%) $8.68 (6.4%)
2025 $28.4b (4.4%) $7.0b (-2.5%) $1.9b (-62.6%) 24.7% (-6.6%) $8.71 (0.3%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model