Lam Research Corporation

BASE:LRCX Stock Report

Market Cap: AR$98.0t

Lam Research Valuation

Is LRCX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LRCX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LRCX (ARS1470) is trading above our estimate of fair value (ARS1099.46)

Significantly Below Fair Value: LRCX is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LRCX?

Key metric: As LRCX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LRCX. This is calculated by dividing LRCX's market cap by their current earnings.
What is LRCX's PE Ratio?
PE Ratio24.3x
EarningsUS$4.06b
Market CapUS$96.77b

Price to Earnings Ratio vs Peers

How does LRCX's PE Ratio compare to its peers?

The above table shows the PE ratio for LRCX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.5x
29.2x13.7%US$86.0b
8035 Tokyo Electron
23.4x11.7%JP¥11.0t
AMAT Applied Materials
19.9x7.7%US$141.8b
6857 Advantest
61.7x16.7%JP¥6.5t
LRCX Lam Research
24.3x12.2%AR$96.8b

Price-To-Earnings vs Peers: LRCX is good value based on its Price-To-Earnings Ratio (24.3x) compared to the peer average (33.5x).


Price to Earnings Ratio vs Industry

How does LRCX's PE Ratio compare vs other companies in the Global Semiconductor Industry?

16 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LRCX 24.3xIndustry Avg. 31.7xNo. of Companies85PE020406080100+
16 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LRCX is good value based on its Price-To-Earnings Ratio (24.3x) compared to the Global Semiconductor industry average (31.8x).


Price to Earnings Ratio vs Fair Ratio

What is LRCX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LRCX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LRCX's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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