LRCX Valuation

Lam Research Corp

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100.150

-3.94(-3.785%)1D

Overview
Forecast
Valuation
Earnings

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 Fair zone, suggesting that its current forward PE ratio of 22.63 is considered Fairly compared with the five-year average of 19.28. The fair price of Lam Research Corp (LRCX) is between 71.12 to 114.02 according to relative valuation methord.

Relative Value

Fair Zone

71.12-114.02

Current Price：100.15

Fair

22.63

Trailing

Forward

18.25

EV/EBITDA

Lam Research Corp. (LRCX) has a current EV/EBITDA of 18.25. The 5-year average EV/EBITDA is 16.17. The thresholds are as follows: Strongly Undervalued below 8.55, Undervalued between 8.55 and 12.36, Fairly Valued between 19.99 and 12.36, Overvalued between 19.99 and 23.80, and Strongly Overvalued above 23.80. The current Forward EV/EBITDA of 18.25 falls within the Historic Trend Line -Fairly Valued range.

19.46

EV/EBIT

Lam Research Corp. (LRCX) has a current EV/EBIT of 19.46. The 5-year average EV/EBIT is 17.11. The thresholds are as follows: Strongly Undervalued below 8.69, Undervalued between 8.69 and 12.90, Fairly Valued between 21.33 and 12.90, Overvalued between 21.33 and 25.54, and Strongly Overvalued above 25.54. The current Forward EV/EBIT of 19.46 falls within the Historic Trend Line -Fairly Valued range.

6.34

Lam Research Corp. (LRCX) has a current PS of 6.34. The 5-year average PS is 5.20. The thresholds are as follows: Strongly Undervalued below 2.71, Undervalued between 2.71 and 3.95, Fairly Valued between 6.44 and 3.95, Overvalued between 6.44 and 7.68, and Strongly Overvalued above 7.68. The current Forward PS of 6.34 falls within the Historic Trend Line -Fairly Valued range.

20.28

P/OCF

Lam Research Corp. (LRCX) has a current P/OCF of 20.28. The 5-year average P/OCF is 17.63. The thresholds are as follows: Strongly Undervalued below 9.16, Undervalued between 9.16 and 13.40, Fairly Valued between 21.87 and 13.40, Overvalued between 21.87 and 26.10, and Strongly Overvalued above 26.10. The current Forward P/OCF of 20.28 falls within the Historic Trend Line -Fairly Valued range.

22.31

P/FCF

Lam Research Corp. (LRCX) has a current P/FCF of 22.31. The 5-year average P/FCF is 19.80. The thresholds are as follows: Strongly Undervalued below 9.18, Undervalued between 9.18 and 14.49, Fairly Valued between 25.11 and 14.49, Overvalued between 25.11 and 30.42, and Strongly Overvalued above 30.42. The current Forward P/FCF of 22.31 falls within the Historic Trend Line -Fairly Valued range.

Lam Research Corp (LRCX) has a current Price-to-Book (P/B) ratio of 12.88. Compared to its 3-year average P/B ratio of 11.24 , the current P/B ratio is approximately 14.61% higher. Relative to its 5-year average P/B ratio of 11.99, the current P/B ratio is about 7.46% higher. Lam Research Corp (LRCX) has a Forward Free Cash Flow (FCF) yield of approximately 4.27%. Compared to its 3-year average FCF yield of 4.60%, the current FCF yield is approximately -7.11% lower. Relative to its 5-year average FCF yield of 4.29% , the current FCF yield is about -0.53% lower.

12.88

P/B

Median3y

11.24

Median5y

11.99

4.27

FCF Yield

Median3y

4.60

Median5y

4.29

Competitors Valuation Multiple

The average P/S ratio for LRCX's competitors is 4.00, providing a benchmark for relative valuation. Lam Research Corp Corp (LRCX) exhibits a P/S ratio of 6.34, which is 58.46% above the industry average. Given its robust revenue growth of 33.58%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Applied Materials Inc

Trane Technologies PLC

Johnson Controls International PLC

Performance Decomposition

Market capitalization of LRCX increased by 23.47% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.87B to 5.17B.

The secondary factor is the Margin Expansion, contributed 26.22%to the performance.

Overall, the performance of LRCX in the past 1 year is driven by Revenue Growth. Which is more sustainable.

33.58%

3.87B → 5.17B

Revenue Growth

26.22%

26.35 → 33.26

Margin Expansion

-36.33%

37.90 → 24.13

P/E Change

23.47%