Applied Materials or ASML: which stock is cheaper in 2026?
As of October 5, 2026, Applied Materials (AMAT) trades at 46.6× earnings (P/E) and ASML (ASML) at 60.0×, according to Kaplio. The median across the 250 technology companies above $2bn in Kaplio's universe is 35.1×. Kaplio's verdict: Applied Materials, expensive; ASML, expensive. Value range by multiples: $241–$407 for Applied Materials and $1,092–$1,155 for ASML. Both trade at a similar distance from their value range.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Applied Materials (AMAT) | ASML (ASML) | |
|---|---|---|
| Summary valuation | expensive ($241–$407) | expensive ($1,092–$1,155) |
| The four lights | Valuation: P/E 46.6× (expensive) Business: ROIC 23 % (solid) Balance sheet: Net debt/EBITDA −0.0× (solid) Results: 8 of 8 (on track) | Valuation: P/E 60.0× (expensive) Business: ROIC 37 % (excellent) Balance sheet: Net debt/EBITDA −0.8× (solid) Results: 6 of 8 (on track) |
| Expected return (per year) | -2.5 % a year (to 2028) | +25.2 % a year (to 2028) |
| Buffett method | quality 96 · would wait | quality 96 · would wait |
| Lynch method | stalwart · would wait | outside his circle |
Metrics side by side
| Metric | Applied Materials (AMAT) | ASML (ASML) |
|---|---|---|
| Overview | ||
| Market Cap | $429B | $720B |
| Price | $540.04 | $1,867.31 |
| Valuation | ||
| P/E | 46.6× | 60.0× |
| P/B | 16.8× | 29.2× |
| P/S | 14.0× | 18.0× |
| EV/EBITDA | 37.9× | 45.9× |
| FCF Yield | 1.3 % | 1.6 % |
| Dividend Yield | 0.4 % | 0.5 % |
| Profitability | ||
| ROIC | 23.0 % | 37.0 % |
| ROE | 40.4 % | 52.4 % |
| Gross Margin | 49.4 % | 52.7 % |
| Operating Margin | 30.5 % | 35.4 % |
| Net Margin | 30.1 % | 30.1 % |
| Growth | ||
| Revenue 5Y CAGR | 10.5 % | 18.5 % |
| EPS 5Y CAGR | 17.1 % | 23.8 % |
| FCF 5Y CAGR | 11.0 % | 25.0 % |
| Balance Sheet | ||
| Net Debt / EBITDA | -0.0× | -0.8× |
| Debt / Equity | 0.3× | 0.1× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.