Forecast Of The Day: Applied Materials Global Services Revenue
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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- What’s Happening With Applied Materials Stock?
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
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| 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