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 32.01 is considered Overvalued compared with the five-year average of 20.02. The fair price of Lam Research Corp (LRCX) is between 106.03 to 156.11 according to relative valuation methord. Compared to the current price of 157.09 USD , Lam Research Corp is Overvalued By 0.62%.
Relative Value
Fair Zone
106.03-156.11
Current Price：157.09
0.62%
Overvalued
32.01
PE
1Y
3Y
5Y
Trailing
Forward
25.60
EV/EBITDA
Lam Research Corp. (LRCX) has a current EV/EBITDA of 25.60. The 5-year average EV/EBITDA is 16.75. The thresholds are as follows: Strongly Undervalued below 8.77, Undervalued between 8.77 and 12.76, Fairly Valued between 20.73 and 12.76, Overvalued between 20.73 and 24.72, and Strongly Overvalued above 24.72. The current Forward EV/EBITDA of 25.60 falls within the Strongly Overvalued range.
27.58
EV/EBIT
Lam Research Corp. (LRCX) has a current EV/EBIT of 27.58. The 5-year average EV/EBIT is 17.84. The thresholds are as follows: Strongly Undervalued below 9.18, Undervalued between 9.18 and 13.51, Fairly Valued between 22.16 and 13.51, Overvalued between 22.16 and 26.49, and Strongly Overvalued above 26.49. The current Forward EV/EBIT of 27.58 falls within the Strongly Overvalued range.
9.27
PS
Lam Research Corp. (LRCX) has a current PS of 9.27. The 5-year average PS is 5.45. The thresholds are as follows: Strongly Undervalued below 2.71, Undervalued between 2.71 and 4.08, Fairly Valued between 6.82 and 4.08, Overvalued between 6.82 and 8.19, and Strongly Overvalued above 8.19. The current Forward PS of 9.27 falls within the Strongly Overvalued range.
33.87
P/OCF
Lam Research Corp. (LRCX) has a current P/OCF of 33.87. The 5-year average P/OCF is 18.38. The thresholds are as follows: Strongly Undervalued below 8.34, Undervalued between 8.34 and 13.36, Fairly Valued between 23.39 and 13.36, Overvalued between 23.39 and 28.41, and Strongly Overvalued above 28.41. The current Forward P/OCF of 33.87 falls within the Strongly Overvalued range.
36.25
P/FCF
Lam Research Corp. (LRCX) has a current P/FCF of 36.25. The 5-year average P/FCF is 20.57. The thresholds are as follows: Strongly Undervalued below 8.65, Undervalued between 8.65 and 14.61, Fairly Valued between 26.52 and 14.61, Overvalued between 26.52 and 32.48, and Strongly Overvalued above 32.48. The current Forward P/FCF of 36.25 falls within the Strongly Overvalued range.
Lam Research Corp (LRCX) has a current Price-to-Book (P/B) ratio of 19.41. Compared to its 3-year average P/B ratio of 12.10 , the current P/B ratio is approximately 60.44% higher. Relative to its 5-year average P/B ratio of 12.39, the current P/B ratio is about 56.61% higher. Lam Research Corp (LRCX) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.38%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.26% , the current FCF yield is about -100.00% lower.
19.41
P/B
Median3y
12.10
Median5y
12.39
2.77
FCF Yield
Median3y
4.38
Median5y
4.26
Competitors Valuation Multiple
The average P/S ratio for LRCX's competitors is , providing a benchmark for relative valuation. Lam Research Corp Corp (LRCX) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 27.74%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LRCX increased by 118.81% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.14 to 34.67.
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.
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FAQ
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