Lam Research Corporation (LRCX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-74.2%

$60.28

vs $233.29 price

Levered DCF

$61.96

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

18.98

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	70.97×	23.34×	36.45×	18.63×	13.67×	23.79×	19.78×	13.28×
P/B	41.35×	12.69×	16.32×	10.24×	10.02×	15.42×	8.62×	6.18×
P/S	22.2×	6.79×	9.35×	4.82×	3.65×	6.35×	4.45×	3.02×
EV / EBITDA	59.08×	19.47×	28.24×	14.85×	11.28×	19.13×	15.08×	10.44×
Gross margin	50.5%	48.7%	47.3%	44.6%	45.7%	46.5%	45.9%	45.1%
Operating margin	35.3%	32.0%	28.6%	29.7%	31.2%	30.6%	26.6%	25.5%
Net margin	31.3%	29.1%	25.7%	25.9%	26.7%	26.7%	22.4%	22.7%
Current ratio	2.63×	2.21×	2.97×	3.16×	2.69×	3.3×	3.43×	3.61×
Debt / equity	0.33×	0.48×	0.58×	0.61×	0.8×	0.83×	1.12×	0.95×
Interest coverage	0×	33.11×	23.02×	27.75×	29.13×	21.49×	15.07×	21.02×
Dividend yield	0.2%	0.9%	0.7%	1.1%	1.3%	0.8%	1.5%	2.3%
Payout ratio	17.5%	21.5%	26.6%	20.1%	17.7%	18.6%	29.2%	31.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	58.3%	54.3%	44.8%	54.9%	73.4%	64.8%	43.4%	46.4%
Return on invested capital	40.8%	34.0%	25.1%	31.3%	37.8%	32.4%	19.1%	21.4%
Return on assets	30.9%	25.1%	20.4%	24.0%	26.8%	24.6%	15.5%	18.3%
Free cash flow yield	0.9%	4.3%	3.1%	5.6%	4.1%	3.5%	4.3%	9.8%
Earnings yield	1.4%	4.3%	2.7%	5.4%	7.3%	4.2%	5.0%	7.5%
Enterprise value	$514.3B	$123.6B	$138.5B	$83.7B	$64.4B	$93.5B	$45.6B	$30B
Net debt / EBITDA	-0.17×	-0.26×	-0.18×	-0.06×	0.26×	0.12×	0.3×	0.29×
Cash conversion cycle (days)	178	200	229	223	207	162	164	135