Lam Research Corporation

BIT:1LRCX Stock Report

Market Cap: €85.6b

Lam Research Valuation

Is 1LRCX 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 1LRCX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1LRCX (€66.81) is trading below our estimate of fair value (€71.11)

Significantly Below Fair Value: 1LRCX 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 1LRCX?

Key metric: As 1LRCX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1LRCX. This is calculated by dividing 1LRCX's market cap by their current earnings.
What is 1LRCX's PE Ratio?
PE Ratio22.4x
EarningsUS$4.06b
Market CapUS$90.13b

Price to Earnings Ratio vs Peers

How does 1LRCX's PE Ratio compare to its peers?

The above table shows the PE ratio for 1LRCX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.5x
TPRO Technoprobe
40.9x25.2%€3.8b
KLAC KLA
28x13.6%US$82.2b
8035 Tokyo Electron
21.5x13.2%JP¥10.1t
AMAT Applied Materials
19.6x7.8%US$139.2b
1LRCX Lam Research
22.4x12.3%€90.1b

Price-To-Earnings vs Peers: 1LRCX is good value based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (27.5x).

Price to Earnings Ratio vs Industry

How does 1LRCX's PE Ratio compare vs other companies in the European Semiconductor Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1LRCX 22.4xIndustry Avg. 14.4xNo. of Companies7PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1LRCX is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the European Semiconductor industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is 1LRCX'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.

1LRCX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1LRCX'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 1LRCX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€69.40
€86.35
+24.4%
11.4%€104.81€68.96n/a30
Oct ’25n/a
€90.76
0%
13.7%€119.00€69.51n/a30
Sep ’25n/a
€93.51
0%
12.5%€118.47€74.21n/a29
Aug ’25n/a
€97.52
0%
11.7%€122.79€76.92n/a28
Jul ’25n/a
€94.43
0%
12.0%€123.76€63.51n/a29
Jun ’25n/a
€91.44
0%
10.4%€111.38€63.12n/a29
May ’25n/a
€91.58
0%
10.4%€112.42€63.70n/a29
Apr ’25n/a
€83.54
0%
10.1%€103.43€60.41n/a29
Mar ’25n/a
€81.87
0%
9.4%€90.43€60.90n/a29
Feb ’25n/a
€80.48
0%
10.7%€90.48€60.94n/a29
Jan ’25n/a
€66.26
0%
11.4%€80.92€50.29n/a29
Dec ’24n/a
€64.57
0%
9.4%€75.80€50.53n/a28
Nov ’24n/a
€65.86
0%
9.0%€78.14€52.10€69.4027
Oct ’24n/a
€65.95
0%
9.9%€78.11€51.60n/a25
Sep ’24n/a
€63.83
0%
9.4%€73.95€50.38n/a24
Aug ’24n/a
€62.78
0%
9.4%€72.84€49.62n/a24
Jul ’24n/a
€53.08
0%
11.1%€66.42€45.81n/a23
Jun ’24n/a
€51.94
0%
10.5%€67.84€44.45n/a22
May ’24n/a
€49.43
0%
6.9%€56.56€43.33n/a22
Apr ’24n/a
€49.10
0%
8.2%€57.73€41.90n/a22
Mar ’24n/a
€48.48
0%
11.7%€58.48€29.14n/a22
Feb ’24n/a
€46.83
0%
11.4%€56.44€28.13n/a23
Jan ’24n/a
€42.52
0%
19.7%€58.35€28.23n/a23
Dec ’23n/a
€42.55
0%
19.6%€59.51€28.79n/a23
Nov ’23n/a
€43.22
0%
18.8%€62.22€30.11n/a23

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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