Lam Research Corporation

NasdaqGS:LRCX Stock Report

Market Cap: US$90.3b

Lam Research Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($70.17) is trading below our estimate of fair value ($74.65)

Significantly Below Fair Value: LRCX 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 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 Ratio22.3x
EarningsUS$4.06b
Market CapUS$90.29b

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 Average36.4x
KLAC KLA
27.8x13.6%US$82.4b
AMAT Applied Materials
19.4x7.8%US$139.6b
TER Teradyne
32.6x21.7%US$16.7b
ENTG Entegris
65.7x50.4%US$15.0b
LRCX Lam Research
22.3x12.3%US$90.3b

Price-To-Earnings vs Peers: LRCX is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (36.4x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.7xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
LRCX 22.3xIndustry Avg. 30.1xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LRCX is good value based on its Price-To-Earnings Ratio (22.3x) compared to the US Semiconductor industry average (30.1x).

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 Ratio22.3x
Fair PE Ratio30.2x

Price-To-Earnings vs Fair Ratio: LRCX is good value based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (30.2x).

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 LRCX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$70.17
US$93.85
+33.7%
11.6%US$114.00US$75.00n/a30
Nov ’25US$74.80
US$93.92
+25.6%
11.4%US$114.00US$75.00n/a30
Oct ’25US$79.74
US$101.06
+26.7%
13.7%US$132.50US$77.40n/a30
Sep ’25US$82.10
US$104.58
+27.4%
12.5%US$132.50US$83.00n/a29
Aug ’25US$83.03
US$105.23
+26.7%
11.7%US$132.50US$83.00n/a28
Jul ’25US$106.06
US$101.10
-4.7%
12.0%US$132.50US$68.00n/a29
Jun ’25US$93.24
US$98.51
+5.7%
10.4%US$120.00US$68.00n/a29
May ’25US$86.81
US$97.76
+12.6%
10.4%US$120.00US$68.00n/a29
Apr ’25US$98.18
US$91.27
-7.0%
10.1%US$113.00US$66.00n/a29
Mar ’25US$98.15
US$88.72
-9.6%
9.4%US$98.00US$66.00n/a29
Feb ’25US$83.22
US$87.17
+4.7%
10.7%US$98.00US$66.00n/a29
Jan ’25US$78.33
US$72.46
-7.5%
11.4%US$88.50US$55.00n/a29
Dec ’24US$72.21
US$70.28
-2.7%
9.4%US$82.50US$55.00n/a28
Nov ’24US$60.67
US$69.53
+14.6%
9.0%US$82.50US$55.00US$74.8027
Oct ’24US$62.68
US$69.66
+11.1%
9.9%US$82.50US$54.50US$79.7425
Sep ’24US$70.20
US$69.05
-1.6%
9.4%US$80.00US$54.50US$82.1024
Aug ’24US$71.59
US$68.95
-3.7%
9.4%US$80.00US$54.50US$83.0324
Jul ’24US$64.29
US$57.93
-9.9%
11.1%US$72.50US$50.00US$106.0623
Jun ’24US$61.99
US$55.50
-10.5%
10.5%US$72.50US$47.50US$93.2422
May ’24US$52.38
US$54.19
+3.4%
6.9%US$62.00US$47.50US$86.8122
Apr ’24US$53.01
US$52.73
-0.5%
8.2%US$62.00US$45.00US$98.1822
Mar ’24US$49.09
US$51.40
+4.7%
11.7%US$62.00US$30.90US$98.1522
Feb ’24US$53.03
US$51.45
-3.0%
11.4%US$62.00US$30.90US$83.2223
Jan ’24US$42.03
US$45.18
+7.5%
19.7%US$62.00US$30.00US$78.3323
Dec ’23US$46.31
US$44.33
-4.3%
19.6%US$62.00US$30.00US$72.2123
Nov ’23US$41.27
US$43.07
+4.4%
18.8%US$62.00US$30.00US$60.6723

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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