Lam Research Corporation

WBAG:LRC2 Stock Report

Market Cap: €90.6b

Lam Research Valuation

Is LRC2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 LRC2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LRC2 (€70.26) is trading below our estimate of fair value (€77.91)

Significantly Below Fair Value: LRC2 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LRC2?

Key metric: As LRC2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LRC2. This is calculated by dividing LRC2's market cap by their current earnings.
What is LRC2's PE Ratio?
PE Ratio23.3x
EarningsUS$4.06b
Market CapUS$94.44b

Price to Earnings Ratio vs Peers

How does LRC2's PE Ratio compare to its peers?

The above table shows the PE ratio for LRC2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.5x
KLAC KLA
29.1x13.6%US$86.2b
8035 Tokyo Electron
23.8x10.3%JP¥11.2t
AMAT Applied Materials
18.9x7.6%US$135.7b
6857 Advantest
66.1x17.1%JP¥7.0t
LRC2 Lam Research
23.3x12.2%€94.4b

Price-To-Earnings vs Peers: LRC2 is good value based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (34.5x).

Price to Earnings Ratio vs Industry

How does LRC2's PE Ratio compare vs other companies in the European Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
LRC2 23.3xIndustry Avg. 17.1xNo. of Companies7PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LRC2 is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the European Semiconductor industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is LRC2'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.

LRC2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LRC2'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?

The above table shows the analyst LRC2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€70.26
€89.28
+27.1%
11.7%€109.66€72.14n/a31
Dec ’25€71.23
€88.51
+24.3%
11.8%€107.90€70.99n/a30
Nov ’25€69.41
€86.35
+24.4%
11.4%€104.81€68.96n/a30
Oct ’25€71.67
€90.76
+26.6%
13.7%€119.00€69.51n/a30
Sep ’25€73.08
€93.51
+28.0%
12.5%€118.47€74.21n/a29
Aug ’25€78.88
€97.52
+23.6%
11.7%€122.79€76.92n/a28
Jul ’25€97.81
€94.43
-3.5%
12.0%€123.76€63.51n/a29
Jun ’25€84.11
€91.44
+8.7%
10.4%€111.38€63.12n/a29
May ’25€85.18
€91.58
+7.5%
10.4%€112.42€63.70n/a29
Apr ’25€88.78
€83.54
-5.9%
10.1%€103.43€60.41n/a29
Mar ’25€89.34
€81.87
-8.4%
9.4%€90.43€60.90n/a29
Feb ’25€75.98
€80.48
+5.9%
10.7%€90.48€60.94n/a29
Jan ’25€71.42
€66.26
-7.2%
11.4%€80.92€50.29n/a29
Dec ’24€66.12
€64.57
-2.3%
9.4%€75.80€50.53€71.2328
Nov ’24€56.24
€65.86
+17.1%
9.0%€78.14€52.10€69.4127
Oct ’24€59.68
€65.95
+10.5%
9.9%€78.11€51.60€71.6725
Sep ’24€64.91
€63.83
-1.7%
9.4%€73.95€50.38€73.0824
Aug ’24€65.22
€62.78
-3.7%
9.4%€72.84€49.62€78.8824
Jul ’24€58.97
€53.08
-10.0%
11.1%€66.42€45.81€97.8123
Jun ’24€57.31
€51.94
-9.4%
10.5%€67.84€44.45€84.1122
May ’24€46.05
€49.43
+7.4%
6.9%€56.56€43.33€85.1822
Apr ’24€48.68
€49.10
+0.9%
8.2%€57.73€41.90€88.7822
Mar ’24€46.02
€48.48
+5.4%
11.7%€58.48€29.14€89.3422
Feb ’24€47.08
€46.83
-0.5%
11.4%€56.44€28.13€75.9823
Jan ’24€38.97
€42.52
+9.1%
19.7%€58.35€28.23€71.4223
Dec ’23€44.08
€42.55
-3.5%
19.6%€59.51€28.79€66.1223

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 02:51
End of Day Share Price 2024/12/27 00:00
Earnings2024/09/29
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Lam Research Corporation is covered by 68 analysts. 30 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James KelleherArgus Research Company
Ishan MajumdarBaptista Research
Thomas O'MalleyBarclays