StocksLRCX

LRCX

Lam Research CorporationTechnology / Semiconductor Equipment & MaterialsINTACT

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company offers ALTUS systems to deposit conformal or selective films for tungsten or molybdenum metallization applications; SABRE electrochemical deposition products for copper interconnect transition, which support copper damascene manufacturing; Striker single-wafer atomic layer deposition products for dielectric film solutions; and VECTOR plasma-enhanced chemical vapor deposition (CVD) products. It also provides Akara, a conductor etch system designed to enhance etch precision, selectivity, and defect control; Argos, Prevos, and Selis, which are selective etch systems used in the fabrication of advanced logic and memory devices that require precise control at nanoscale dimensions; Flex for dielectric etch applications; Vantex, a dielectric etch system that provides RF technology and repeatable wafer-to-wafer performance enabled by Equipment Intelligence solutions; Kiyo for conductor etch applications; Syndion for deep silicon etch; and Versys metal products for metal etch processes. In addition, the company offers Coronus bevel clean products to enhance die yield and Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications. Further, it provides Reliant deposition, etch, and clean products; Sense.i platform products; and customer service, spares, and upgrades. Lam Research Corporation was incorporated in 1980 and is headquartered in Fremont, California.

Share Price
$301.82
52W: $115.88 - $438.5
DCF Fair Value
$80.03
-277.1% Premium
P/E (TTM)
52.5x
ROIC
28.1%
Operating Margin
37.4%
FCF Yield
0.8%
Debt / Equity
0.33x
Piotroski Score
7/9
Altman Z-Score
2.9
Market Cap
$377.7B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($80.03)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$80.03
MOS Buy Target (-25%)
$60.02
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$301.82
DCF Fair Value
$80.08
-276.9% Premium
$3,090M
$100M$3,090M (Reported)$50,000M
18.0%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
-$1,500M (Net Cash)
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$40.0B
PV of Terminal Value
$58.7B
Implied Enterprise Value
$98.7B
Implied Equity Value
$100.2B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$3,646$4,303$5,077$5,991$7,069$7,387$7,720$8,067$8,430$8,809
Present Value (PV)$3,345$3,621$3,920$4,244$4,594$4,405$4,223$4,049$3,881$3,721

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-740.5% Premium
$35.91

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $5.75BVPS: $9.97
Revised Graham Formula-56.5% Premium
$192.91

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings0.8% Yield
$2.35 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.9BYield: 0.8%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER
30.1% CAGR (Next 10 Yrs)

At the current price of $301.82, the market is assuming the business will compound Free Cash Flow at 30.1% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
⚠ High expectations: Leaves minimal margin of safety for operational hiccups.
Autonomous Thesis Underwriting

Surveil LRCX with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Lam Research Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 37.4% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Lam Research Corporation (LRCX) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Lam Research Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Lam Research Corporation has an estimated DCF intrinsic fair value of $80.03 per share compared to its current market price of $301.82. This represents an estimated 277.1% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $35.91.

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