LRCX PE Ratio & Valuation,Is LRCX Overvalued

LRCX Relative Valuation

LRCX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LRCX is overvalued; if below, it's undervalued.

Historical Valuation

Lam Research Corp (LRCX) is now in the Overvalued zone, suggesting that its current forward PE ratio of 37.50 is considered Overvalued compared with the five-year average of 20.24. The fair price of Lam Research Corp (LRCX) is between 93.42 to 150.44 according to relative valuation methord. Compared to the current price of 201.94 USD , Lam Research Corp is Overvalued By 34.23%.

Relative Value

Fair Zone

93.42-150.44

Current Price：201.94

34.23%

Overvalued

37.50

29.68

EV/EBITDA

Lam Research Corp. (LRCX) has a current EV/EBITDA of 29.68. The 5-year average EV/EBITDA is 16.94. The thresholds are as follows: Strongly Undervalued below 8.58, Undervalued between 8.58 and 12.76, Fairly Valued between 21.12 and 12.76, Overvalued between 21.12 and 25.30, and Strongly Overvalued above 25.30. The current Forward EV/EBITDA of 29.68 falls within the Strongly Overvalued range.

31.92

EV/EBIT

Lam Research Corp. (LRCX) has a current EV/EBIT of 31.92. The 5-year average EV/EBIT is 18.08. The thresholds are as follows: Strongly Undervalued below 9.04, Undervalued between 9.04 and 13.56, Fairly Valued between 22.61 and 13.56, Overvalued between 22.61 and 27.13, and Strongly Overvalued above 27.13. The current Forward EV/EBIT of 31.92 falls within the Strongly Overvalued range.

10.73

Lam Research Corp. (LRCX) has a current PS of 10.73. The 5-year average PS is 5.54. The thresholds are as follows: Strongly Undervalued below 2.60, Undervalued between 2.60 and 4.07, Fairly Valued between 7.01 and 4.07, Overvalued between 7.01 and 8.48, and Strongly Overvalued above 8.48. The current Forward PS of 10.73 falls within the Strongly Overvalued range.

39.23

P/OCF

Lam Research Corp. (LRCX) has a current P/OCF of 39.23. The 5-year average P/OCF is 18.65. The thresholds are as follows: Strongly Undervalued below 7.71, Undervalued between 7.71 and 13.18, Fairly Valued between 24.12 and 13.18, Overvalued between 24.12 and 29.60, and Strongly Overvalued above 29.60. The current Forward P/OCF of 39.23 falls within the Strongly Overvalued range.

42.00

P/FCF

Lam Research Corp. (LRCX) has a current P/FCF of 42.00. The 5-year average P/FCF is 20.86. The thresholds are as follows: Strongly Undervalued below 8.14, Undervalued between 8.14 and 14.50, Fairly Valued between 27.22 and 14.50, Overvalued between 27.22 and 33.58, and Strongly Overvalued above 33.58. The current Forward P/FCF of 42.00 falls within the Strongly Overvalued range.

Lam Research Corp (LRCX) has a current Price-to-Book (P/B) ratio of 22.86. Compared to its 3-year average P/B ratio of 12.46 , the current P/B ratio is approximately 83.53% higher. Relative to its 5-year average P/B ratio of 12.51, the current P/B ratio is about 82.72% higher. Lam Research Corp (LRCX) has a Forward Free Cash Flow (FCF) yield of approximately 2.39%. Compared to its 3-year average FCF yield of 4.30%, the current FCF yield is approximately -44.53% lower. Relative to its 5-year average FCF yield of 4.26% , the current FCF yield is about -43.89% lower.

22.86

P/B

Median3y

12.46

Median5y

12.51

2.39

FCF Yield

Median3y

4.30

Median5y

4.26

Competitors Valuation Multiple

The average P/S ratio for LRCX's competitors is 5.39, providing a benchmark for relative valuation. Lam Research Corp Corp (LRCX) exhibits a P/S ratio of 10.73, which is 99.11% above the industry average. Given its robust revenue growth of 27.74%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LRCX increased by 151.32% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.12 to 40.84.

The secondary factor is the Revenue Growth, contributed 27.74%to the performance.

Overall, the performance of LRCX in the past 1 year is driven by P/E Change. Which is more unsustainable.

27.74%

4.17B → 5.32B

Revenue Growth

9.97%

26.79 → 29.46

Margin Expansion

113.61%

19.12 → 40.84

P/E Change

151.32%

80.81 → 203.08

Mkt Cap Growth

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Frequently Asked Questions

Is Lam Research Corp (LRCX) currently overvalued or undervalued?

What is Lam Research Corp (LRCX) fair value?

LRCX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Lam Research Corp (LRCX) is between 93.42 to 150.44 according to relative valuation methord.

How does LRCX's valuation metrics compare to the industry average?

What is the current P/B ratio for Lam Research Corp (LRCX) as of Jan 08 2026?

As of Jan 08 2026, Lam Research Corp (LRCX) has a P/B ratio of 22.86. This indicates that the market values LRCX at 22.86 times its book value.

What is the current FCF Yield for Lam Research Corp (LRCX) as of Jan 08 2026?

As of Jan 08 2026, Lam Research Corp (LRCX) has a FCF Yield of 2.39%. This means that for every dollar of Lam Research Corp’s market capitalization, the company generates 2.39 cents in free cash flow.

What is the current Forward P/E ratio for Lam Research Corp (LRCX) as of Jan 08 2026?

As of Jan 08 2026, Lam Research Corp (LRCX) has a Forward P/E ratio of 37.50. This means the market is willing to pay $37.50 for every dollar of Lam Research Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Lam Research Corp (LRCX) as of Jan 08 2026?

As of Jan 08 2026, Lam Research Corp (LRCX) has a Forward P/S ratio of 10.73. This means the market is valuing LRCX at $10.73 for every dollar of expected revenue over the next 12 months.

LRCX Valuation