Forecast Of The Day: Applied Materials Global Services Revenue

-16.86%
Downside
243
Market
202
Trefis
AMAT: Applied Materials logo
AMAT
Applied Materials

What?

Applied Materials (NASDAQ:AMAT) Global Services Revenue rose steadily from around $3.85 billion in FY’19 to about $5 billion in FY’21. Trefis expects the metric to rise to over $6 billion by FY’23. The Global Services business is focused on solutions to optimize equipment and fab performance and productivity.

Why?

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Semiconductor manufacturers are looking to cut costs and improve efficiencies and this could drive demand for the company’s services.

So What?

We estimate AMAT valuation at $162 per share, about 16% ahead of the current market price. This represents a P/EBITDA multiple of 28x for the company based on our forecast for Applied Materials EBITDA for the current fiscal year.

See Our Complete Analysis For Applied Materials

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

 Returns Jan 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 AMAT Return -11% -11% 332%
 S&P 500 Return -7% -7% 97%
 Trefis MS Portfolio Return -10% -10% 252%

[1] Month-to-date and year-to-date as of 1/25/2022
[2] Cumulative total returns since the end of 2016

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