Lam Research Corporation

NasdaqGS:LRCX Stock Report

Market Cap: US$91.6b

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 ($71.79) is trading below our estimate of fair value ($76.5)

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 Ratio22.8x
EarningsUS$4.06b
Market CapUS$91.62b

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 Average38.2x
KLAC KLA
28.4x13.6%US$83.2b
AMAT Applied Materials
18.5x7.6%US$131.4b
TER Teradyne
40x21.7%US$20.4b
ENTG Entegris
65.7x50.4%US$14.8b
LRCX Lam Research
22.8x12.2%US$91.6b

Price-To-Earnings vs Peers: LRCX is good value based on its Price-To-Earnings Ratio (22.8x) compared to the peer average (38.2x).

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
SQNS Sequans Communications
1.7x-156.5%US$71.23m
MMAT.Q Meta Materials
n/an/aUS$6.00
No more companies available in this PE range
LRCX 22.8xIndustry Avg. 29.1xNo. of Companies11PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LRCX is good value based on its Price-To-Earnings Ratio (22.8x) compared to the US Semiconductor industry average (29.1x).

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 Ratio22.8x
Fair PE Ratio30.5x

Price-To-Earnings vs Fair Ratio: LRCX is good value based on its Price-To-Earnings Ratio (22.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.5x).

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$71.79
US$92.82
+29.3%
11.7%US$114.00US$75.00n/a31
Dec ’25US$73.88
US$93.51
+26.6%
11.8%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$55.00US$73.8828
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

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 Analysis2024/12/20 04:35
End of Day Share Price 2024/12/20 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