Lam Research Corporation

NasdaqGS:LRCX Stock Report

Market Cap: US$140.1b

Lam Research Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 ($1089.58) is trading above our estimate of fair value ($681.96)

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?

Other financial metrics that can be useful for relative valuation.

LRCX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.8x
Enterprise Value/EBITDA31.5x
PEG Ratio2.3x

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 Average48.5x
44.5x18.3%US$114.3b
AMAT Applied Materials
28.1x7.9%US$201.1b
TER Teradyne
55.2x23.8%US$22.6b
ENTG Entegris
66.1x34.4%US$20.4b
LRCX Lam Research
39.5x16.9%US$140.1b

Price-To-Earnings vs Peers: LRCX is good value based on its Price-To-Earnings Ratio (39.5x) compared to the peer average (48.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LRCX is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the US Semiconductor industry average (30.2x).


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 Ratio39.5x
Fair PE Ratio33.4x

Price-To-Earnings vs Fair Ratio: LRCX is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the estimated Fair Price-To-Earnings Ratio (33.4x).


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$1,089.58
US$1,000.13
-8.2%
10.7%US$1,200.00US$680.00n/a29
Jun ’25US$932.44
US$985.13
+5.7%
10.4%US$1,200.00US$680.00n/a29
May ’25US$868.10
US$977.61
+12.6%
10.4%US$1,200.00US$680.00n/a29
Apr ’25US$981.79
US$912.75
-7.0%
10.1%US$1,130.00US$660.00n/a29
Mar ’25US$981.53
US$887.23
-9.6%
9.4%US$980.00US$660.00n/a29
Feb ’25US$832.21
US$871.68
+4.7%
10.7%US$980.00US$660.00n/a29
Jan ’25US$783.26
US$724.60
-7.5%
11.4%US$885.00US$550.00n/a29
Dec ’24US$722.08
US$702.80
-2.7%
9.4%US$825.00US$550.00n/a28
Nov ’24US$606.66
US$695.32
+14.6%
9.0%US$825.00US$550.00n/a27
Oct ’24US$626.77
US$696.57
+11.1%
9.9%US$825.00US$545.00n/a25
Sep ’24US$701.96
US$690.54
-1.6%
9.4%US$800.00US$545.00n/a24
Aug ’24US$715.90
US$689.50
-3.7%
9.4%US$800.00US$545.00n/a24
Jul ’24US$642.86
US$579.35
-9.9%
11.1%US$725.00US$500.00n/a23
Jun ’24US$619.86
US$555.05
-10.5%
10.5%US$725.00US$475.00US$932.4422
May ’24US$523.83
US$541.86
+3.4%
6.9%US$620.00US$475.00US$868.1022
Apr ’24US$530.12
US$527.27
-0.5%
8.2%US$620.00US$450.00US$981.7922
Mar ’24US$490.92
US$514.05
+4.7%
11.7%US$620.00US$309.00US$981.5322
Feb ’24US$530.26
US$514.46
-3.0%
11.4%US$620.00US$309.00US$832.2123
Jan ’24US$420.30
US$451.76
+7.5%
19.7%US$620.00US$300.00US$783.2623
Dec ’23US$463.14
US$443.28
-4.3%
19.6%US$620.00US$300.00US$722.0823
Nov ’23US$412.71
US$430.67
+4.4%
18.8%US$620.00US$300.00US$606.6623
Oct ’23US$366.00
US$561.28
+53.4%
13.6%US$720.00US$405.00US$626.7723
Sep ’23US$432.04
US$573.40
+32.7%
14.9%US$800.00US$450.00US$701.9624
Aug ’23US$502.80
US$573.32
+14.0%
15.2%US$800.00US$450.00US$715.9023
Jul ’23US$394.83
US$631.01
+59.8%
15.4%US$840.00US$510.00US$642.8624
Jun ’23US$505.79
US$645.60
+27.6%
13.7%US$840.00US$520.00US$619.8624

Analyst Forecast: Target price is lower than the current share price.


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