Lam Research Valuation

LRCX Stock  USD 971.57  5.90  0.61%   
At this time, the firm appears to be overvalued. Lam Research Corp secures a last-minute Real Value of $860.6 per share. The latest price of the firm is $971.57. Our model forecasts the value of Lam Research Corp from analyzing the firm fundamentals such as Return On Equity of 0.42, profit margin of 0.24 %, and Current Valuation of 126.15 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Price Book
15.422
Enterprise Value
126.2 B
Enterprise Value Ebitda
28.2644
Price Sales
8.857
Forward PE
26.5252
Overvalued
Today
971.57
Please note that Lam Research's price fluctuation is very steady at this time. Calculation of the real value of Lam Research Corp is based on 3 months time horizon. Increasing Lam Research's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lam Research Corp is useful when determining the fair value of the Lam stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lam Research. Since Lam Research is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lam Stock. However, Lam Research's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  971.57 Real  860.6 Target  643.17 Hype  966.73 Naive  977.72
The real value of Lam Stock, also known as its intrinsic value, is the underlying worth of Lam Research Corp Company, which is reflected in its stock price. It is based on Lam Research's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Lam Research's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Lam Research's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
858.45
Downside
860.60
Real Value
1,062
Upside
Estimating the potential upside or downside of Lam Research Corp helps investors to forecast how Lam stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lam Research more accurately as focusing exclusively on Lam Research's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
5.847.267.04
Details
Hype
Prediction
LowEstimatedHigh
964.58966.73968.88
Details
Potential
Annual Dividend
LowForecastedHigh
4.594.634.68
Details
32 Analysts
Consensus
LowTarget PriceHigh
585.28643.17713.92
Details

Lam Research Investments

(584.01 Million)

Lam Research Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Lam Research's current stock value. Our valuation model uses many indicators to compare Lam Research value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lam Research competition to find correlations between indicators driving Lam Research's intrinsic value. More Info.
Lam Research Corp is currently regarded as number one stock in last dividend paid category among related companies. It is currently regarded as number one stock in beta category among related companies totaling about  0.20  of Beta per Last Dividend Paid. The ratio of Last Dividend Paid to Beta for Lam Research Corp is roughly  4.91 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lam Research by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lam Research's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lam Research's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Lam Research's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Lam Research and how it compares across the competition.

About Lam Research Valuation

The stock valuation mechanism determines the current worth of Lam Research Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lam Research Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lam Research Corp based exclusively on its fundamental and basic technical indicators. By analyzing Lam Research's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Lam Research's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lam Research. We calculate exposure to Lam Research's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lam Research's related companies.
Last ReportedProjected for 2024
Gross Profit8.9 B9.4 B
Pretax Profit Margin 0.25  0.27 
Operating Profit Margin 0.26  0.27 
Net Profit Margin 0.23  0.24 
Gross Profit Margin 0.45  0.50 

Lam Research Quarterly Retained Earnings

23.35 Billion

8 Steps to conduct Lam Research's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Lam Research's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Lam Research's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Lam Research's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Lam Research's revenue streams: Identify Lam Research's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Lam Research's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Lam Research's growth potential: Evaluate Lam Research's management, business model, and growth potential.
  • Determine Lam Research's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Lam Research's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Lam Research's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Lam Research's value is low or high relative to the company's performance and growth projections. Determining the market value of Lam Research can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Lam Research represents a small ownership stake in the entity. As a stockholder of Lam, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Lam Research Dividends Analysis For Valuation

At this time, Lam Research's Dividends Paid is fairly stable compared to the past year. Dividend Yield is likely to rise to 0.03 in 2024, whereas Dividend Payout Ratio is likely to drop 0.30 in 2024. . Retained Earnings is likely to rise to about 26.6 B in 2024. Retained Earnings Total Equity is likely to rise to about 26.6 B in 2024
Last ReportedProjected for 2024
Dividends PaidB1.1 B
Dividend Yield 0.02  0.03 
Dividend Payout Ratio 0.31  0.30 
Dividend Paid And Capex Coverage Ratio 8.47  8.90 
There are various types of dividends Lam Research can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Lam shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Lam Research Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lam pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lam Research by the value of the dividends paid out.

Lam Research Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Lam Research does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding135.8 M
Quarterly Earnings Growth Y O Y-0.33
Forward Price Earnings26.5252

Lam Research Current Valuation Indicators

Valuation refers to the process of determining the present value of Lam Research Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lam we look at many different elements of the entity such as Lam's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Lam Research's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Lam Research's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lam Research, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lam Research's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lam Research's worth.
When determining whether Lam Research Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lam Research's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lam Research Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lam Research Corp Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lam Research Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
Note that the Lam Research Corp information on this page should be used as a complementary analysis to other Lam Research's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Complementary Tools for Lam Stock analysis

When running Lam Research's price analysis, check to measure Lam Research's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lam Research is operating at the current time. Most of Lam Research's value examination focuses on studying past and present price action to predict the probability of Lam Research's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lam Research's price. Additionally, you may evaluate how the addition of Lam Research to your portfolios can decrease your overall portfolio volatility.
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Is Lam Research's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lam Research. If investors know Lam will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lam Research listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.33)
Dividend Share
7.45
Earnings Share
25.92
Revenue Per Share
107.407
Quarterly Revenue Growth
(0.29)
The market value of Lam Research Corp is measured differently than its book value, which is the value of Lam that is recorded on the company's balance sheet. Investors also form their own opinion of Lam Research's value that differs from its market value or its book value, called intrinsic value, which is Lam Research's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lam Research's market value can be influenced by many factors that don't directly affect Lam Research's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lam Research's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lam Research is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lam Research's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.