Lam Research Corp., FCFF calculation

US$ in thousands

12 months ended:	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
Net income	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)	2,380,681)
Net noncash charges	509,269)	290,614)	358,446)	446,573)	493,059)	592,259)
Changes in operating asset and liability accounts	158,738)	(1,796,226)	(678,741)	(571,875)	491,524)	(317,193)
Net cash provided by operating activities	5,178,938)	3,099,674)	3,588,163)	2,126,451)	3,176,013)	2,655,747)
Cash payments for interest, net of tax¹	154,282)	155,658)	182,356)	150,317)	70,917)	60,541)
Capital expenditures and intangible assets	(501,568)	(546,034)	(349,096)	(203,239)	(303,491)	(273,469)
Right-of-use assets obtained in exchange for finance lease obligations	(20,161)	(13,868)	(29,497)	(3,019)	—)	—)
Free cash flow to the firm (FCFF)	4,811,491)	2,695,430)	3,391,926)	2,070,510)	2,943,439)	2,442,819)

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Lam Research Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Lam Research Corp. FCFF decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

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

US$ in thousands

12 months ended:	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
Effective Income Tax Rate (EITR)
EITR¹	11.71%	11.32%	10.58%	12.55%	7.82%	28.27%
Interest Paid, Net of Tax
Cash payments for interest, before tax	174,745)	175,528)	203,932)	171,889)	76,933)	84,401)
Less: Cash payments for interest, tax²	20,463)	19,870)	21,576)	21,572)	6,016)	23,860)
Cash payments for interest, net of tax	154,282)	155,658)	182,356)	150,317)	70,917)	60,541)

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

¹ See details »

² 2023 Calculation
Cash payments for interest, tax = Cash payments for interest × EITR
= 174,745 × 11.71% = 20,463

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	120,955,626)
Free cash flow to the firm (FCFF)	4,811,491)
Valuation Ratio
EV/FCFF	25.14
Benchmarks
EV/FCFF, Competitors¹
Advanced Micro Devices Inc.	211.41
Analog Devices Inc.	28.34
Applied Materials Inc.	21.88
Broadcom Inc.	34.04
Intel Corp.	—
KLA Corp.	27.70
Micron Technology Inc.	—
NVIDIA Corp.	79.91
ON Semiconductor Corp.	59.31
Qualcomm Inc.	17.20
Texas Instruments Inc.	100.71
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	109.92
EV/FCFF, Industry
Information Technology	42.64

Based on: 10-K (reporting date: 2023-06-25).

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.

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

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	86,541,993)	64,774,816)	81,462,309)	53,647,314)	28,942,339)	25,309,804)
Free cash flow to the firm (FCFF)²	4,811,491)	2,695,430)	3,391,926)	2,070,510)	2,943,439)	2,442,819)
Valuation Ratio
EV/FCFF³	17.99	24.03	24.02	25.91	9.83	10.36
Benchmarks
EV/FCFF, Competitors⁴
Advanced Micro Devices Inc.	225.41	38.82	43.41	126.98	169.58	—
Analog Devices Inc.	25.61	23.12	39.16	27.12	21.68	16.04
Applied Materials Inc.	17.40	19.06	26.22	22.52	18.91	9.96
Broadcom Inc.	28.53	14.74	19.47	16.54	15.04	13.02
Intel Corp.	—	—	16.94	11.08	17.39	—
KLA Corp.	19.99	19.05	26.29	18.70	20.92	14.15
Micron Technology Inc.	—	18.28	33.81	292.39	14.33	5.37
NVIDIA Corp.	142.90	78.07	69.47	41.65	27.92	—
ON Semiconductor Corp.	67.36	20.67	19.86	33.03	46.88	—
Qualcomm Inc.	11.61	18.18	17.47	30.89	14.91	22.53
Texas Instruments Inc.	90.39	27.05	24.23	27.67	20.75	—
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	61.21	34.74	26.16	22.06	18.29	—
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69	—

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 86,541,993 ÷ 4,811,491 = 17.99

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Lam Research Corp. EV/FCFF ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Lam Research Corp. (NASDAQ:LRCX)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical