Lam Research Corp. (NASDAQ:LRCX)

Market (fair) value of Lam Research

The market value exhibited an overall upward trend from 2020 through 2025. Starting at approximately 61.7 billion US dollars in 2020, it increased to around 87.96 billion in 2021, marking a substantial rise. However, in 2022, there was a notable decline to roughly 68.22 billion, followed by a rebound in 2023 to about 91.59 billion. The value continued to increase significantly in the subsequent years, reaching approximately 108.17 billion in 2024 and 133.26 billion in 2025, showing strong growth momentum in the latter years.

Invested capital

Invested capital demonstrated a consistent growth pattern over the period. Beginning at around 11.79 billion in 2020, there was a steady increase each year, reaching approximately 12.26 billion in 2021, 13.51 billion in 2022, and 14.99 billion in 2023. Although there was a slight decrease in 2024 to about 14.84 billion, the invested capital rebounded by 2025 to nearly 16.36 billion. This indicates ongoing investment in capital assets with minor fluctuation.

Market value added (MVA)

MVA followed a trend similar to market value, reflecting the differential between market value and invested capital. MVA started at nearly 49.95 billion in 2020 and increased significantly to about 75.69 billion in 2021. A decline was observed in 2022 to approximately 54.7 billion, followed by recovery in 2023 to roughly 76.61 billion. Subsequent growth continued with MVA reaching 93.32 billion in 2024 and peaking at around 116.90 billion in 2025. This trajectory indicates increasing value creation over the invested capital, especially strong in the later years.

Market Value Added (MVA)

The market value added shows an overall upward trend across the periods observed. Starting from approximately 49.9 billion US dollars in mid-2020, the value increased significantly to about 75.7 billion by mid-2021. There was a decline in mid-2022, where MVA dropped to roughly 54.7 billion, but it subsequently rebounded and continued to rise through mid-2023 to mid-2025, reaching nearly 116.9 billion by the end of the latest period. This indicates substantial growth in market valuation, with a short-term fluctuation observed in 2022.

Invested Capital

Invested capital has shown a steady increase throughout the time periods analyzed. It grew modestly from approximately 11.8 billion US dollars in mid-2020 to about 12.3 billion in mid-2021. The growth continued at a consistent pace, reaching around 16.4 billion by mid-2025. This steady increase suggests ongoing capital investment in the company's operations or assets over time without significant volatility.

MVA Spread Ratio

The MVA spread ratio, which reflects the value created relative to invested capital, generally exhibits an increasing trend with some fluctuations. It began at 423.68% in mid-2020 and peaked significantly at 617.13% in mid-2021. There was a drop in mid-2022 to 404.85%, reflecting the dip in MVA during that period. However, it recovered and increased sharply in subsequent years, reaching an elevated 714.6% by mid-2025. This pattern suggests improved efficiency or market perception in generating value over the invested capital, especially towards the later years.

Overall Insights

The data collectively depict a company experiencing strong growth in market value and capital investment over the five-year span. Despite a temporary decrease in market value added and the MVA spread ratio in 2022, the company resumed its growth trajectory with gains surpassing previous peaks by the end of the latest period. The rising MVA spread ratio indicates an increasing return on invested capital from a market value perspective, signaling enhanced value creation and potentially improved market confidence in the company's future prospects.

The financial data reveals several notable trends and fluctuations over the observed periods.

Market Value Added (MVA)

The MVA shows significant variability across the years. Starting at approximately $49.95 billion in 2020, it increased substantially in 2021 to about $75.69 billion. However, a notable decline occurred in 2022, dropping to around $54.70 billion. The MVA rebounded in 2023 to $76.61 billion and continued a strong upward trajectory through 2024 and 2025, reaching approximately $93.32 billion and $116.90 billion respectively. This pattern indicates periods of volatility but an overall growth trend in market value added by the end of the period.

Adjusted Revenue

Adjusted revenue demonstrated a general uptrend but with some inconsistencies. It increased markedly from roughly $10.13 billion in 2020 to $15.21 billion in 2021 and further to about $18.31 billion in 2022. However, the revenue declined in 2023 and 2024 to approximately $17.07 billion and $14.62 billion, respectively, before surging again to $19.57 billion in 2025. The fluctuations in the middle years may suggest impacts from external economic factors or operational challenges, followed by a strong recovery.

MVA Margin

The MVA margin, representing the efficiency or profitability relative to revenue, fluctuated considerably. Starting at about 493% in 2020, it remained relatively stable at nearly 498% in 2021. A sharp decline to approximately 299% was recorded in 2022, followed by a rebound to roughly 449% in 2023. A marked increase occurred in 2024, reaching around 638%, with a slight decrease to 597% in 2025. These significant variations suggest changes in how effectively the company converted its revenue into market value, reflecting operational or market environment changes over time.