Stock Analysis on Net
Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel LibreOffice Calc

Free Cash Flow to The Firm (FCFF)

Lam Research Corp., FCFF calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Net income 3,908,458  2,251,753  2,191,430  2,380,681  1,697,763  914,049 
Net noncash charges 358,446  446,573  493,059  592,259  642,351  488,457 
Changes in operating asset and liability accounts (678,741) (571,875) 491,524  (317,193) (310,832) (52,229)
Net cash provided by operating activities 3,588,163  2,126,451  3,176,013  2,655,747  2,029,282  1,350,277 
Cash payments for interest, net of tax1 182,356  150,317  70,917  60,541  98,038  55,987 
Capital expenditures and intangible assets (349,096) (203,239) (303,491) (273,469) (157,419) (175,330)
Free cash flow to the firm (FCFF) 3,421,423  2,073,529  2,943,439  2,442,819  1,969,901  1,230,934 

Based on: 10-K (filing date: 2021-08-17), 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Lam Research Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Lam Research Corp.’s FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Interest Paid, Net of Tax

Lam Research Corp., interest paid, net of tax calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Effective Income Tax Rate (EITR)
EITR1 10.58% 12.55% 7.82% 28.27% 6.29% 4.80%
Interest Paid, Net of Tax
Cash payments for interest, before tax 203,932  171,889  76,933  84,401  104,619  58,810 
Less: Cash payments for interest, tax2 21,576  21,572  6,016  23,860  6,581  2,823 
Cash payments for interest, net of tax 182,356  150,317  70,917  60,541  98,038  55,987 

Based on: 10-K (filing date: 2021-08-17), 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17).

1 See details »

2 2021 Calculation
Cash payments for interest, tax = Cash payments for interest × EITR
= 203,932 × 10.58% = 21,576


Enterprise Value to FCFF Ratio, Current

Lam Research Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 78,116,458 
Free cash flow to the firm (FCFF) 3,421,423 
Valuation Ratio
EV/FCFF 22.83
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 178.15
Applied Materials Inc. 33.62
Broadcom Inc. 19.26
Intel Corp. 10.94
Micron Technology Inc. 37.92
NVIDIA Corp. 116.51
Qualcomm Inc. 31.75
Texas Instruments Inc. 32.88
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment 32.02
EV/FCFF, Industry
Information Technology 35.36

Based on: 10-K (filing date: 2021-08-17).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Lam Research Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 81,462,309  53,647,314  28,942,339  25,309,804  22,679,116  11,962,196 
Free cash flow to the firm (FCFF)2 3,421,423  2,073,529  2,943,439  2,442,819  1,969,901  1,230,934 
Valuation Ratio
EV/FCFF3 23.81 25.87 9.83 10.36 11.51 9.72
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. 126.98 169.58 770.71 121.45
Applied Materials Inc. 22.52 18.91 9.96 15.58 15.02
Broadcom Inc. 16.52 14.91 12.67 18.68 28.10
Intel Corp. 11.08 17.39 15.50 20.45 14.08
Micron Technology Inc. 38.75 2,354.03 14.33 5.37 17.38
NVIDIA Corp. 69.47 41.65 27.83 47.75 37.51 12.86
Qualcomm Inc. 30.89 14.91 22.53 14.89 12.58
Texas Instruments Inc. 27.67 20.75 16.49 21.57 18.62
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment 21.93 17.94 15.50 19.71 18.66
EV/FCFF, Industry
Information Technology 25.92 21.80 18.35 18.39 15.24

Based on: 10-K (filing date: 2021-08-17), 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 81,462,309 ÷ 3,421,423 = 23.81

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Lam Research Corp.’s EV/FCFF ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.