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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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