Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

Lam Research Corp., FCFE calculation

US$ in thousands

12 months ended:	Jun 28, 2026	Jun 29, 2025	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021
Net income	7,265,396)	5,358,217)	3,827,772)	4,510,931)	4,605,286)	3,908,458)
Net noncash charges	506,140)	373,246)	464,019)	509,269)	290,614)	358,446)
Changes in operating asset and liability accounts	(1,913,879)	441,801)	360,478)	158,738)	(1,796,226)	(678,741)
Net cash provided by operating activities	5,857,657)	6,173,264)	4,652,269)	5,178,938)	3,099,674)	3,588,163)
Capital expenditures and intangible assets	(966,405)	(759,186)	(396,670)	(501,568)	(546,034)	(349,096)
Principal payments on long-term debt and finance lease obligations and payments for debt issuance costs	(755,428)	(507,488)	(256,104)	(23,206)	(11,889)	(862,060)
Free cash flow to equity (FCFE)	4,135,824)	4,906,590)	3,999,495)	4,654,164)	2,541,751)	2,377,007)

Based on: 10-K (reporting date: 2026-06-28), 10-K (reporting date: 2025-06-29), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27).

The financial trajectory from 2021 through 2026 exhibits a general upward trend in cash generation, characterized by cyclical fluctuations in both operating cash flows and free cash flow to equity (FCFE).

Net Cash Provided by Operating Activities: Operating cash flows demonstrate a non-linear growth pattern. Following a decline in 2022 to 3,099,674 thousand USD, there was a significant surge in 2023 to 5,178,938 thousand USD. This metric peaked in 2025 at 6,173,264 thousand USD, before experiencing a moderate contraction to 5,857,657 thousand USD in 2026.
Free Cash Flow to Equity (FCFE) Performance: FCFE follows a similarly volatile but expanding trajectory. Starting at 2,377,007 thousand USD in 2021, the value reached a peak of 4,906,590 thousand USD in 2025. A pattern of alternating growth and contraction is evident between 2023 and 2026, with FCFE fluctuating between approximately 3.9 billion and 4.9 billion USD.
Analysis of Cash Flow Conversion and Divergence: A notable divergence occurred in 2022, where FCFE increased to 2,541,751 thousand USD despite a simultaneous decrease in net cash provided by operating activities. This indicates that the reduction in operating cash was offset by lower capital expenditures or net debt issuance. In subsequent years, FCFE closely mirrored the movement of operating cash flows, though it consistently remained at a lower absolute value, reflecting the continuous allocation of funds toward capital investments.

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Price to FCFE Ratio, Current

Lam Research Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,251,321,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	4,135,824)
FCFE per share	3.31
Current share price (P)	332.36
Valuation Ratio
P/FCFE	100.56
Benchmarks
P/FCFE, Competitors¹
Advanced Micro Devices Inc.	119.79
Analog Devices Inc.	35.60
Applied Materials Inc.	67.23
Broadcom Inc.	77.57
Intel Corp.	—
KLA Corp.	70.69
Micron Technology Inc.	741.98
NVIDIA Corp.	56.36
Qualcomm Inc.	13.49
Texas Instruments Inc.	83.66
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	96.67
P/FCFE, Industry
Information Technology	60.29

Based on: 10-K (reporting date: 2026-06-28).

¹ Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

Lam Research Corp., historical P/FCFE calculation, comparison to benchmarks

	Jun 28, 2026	Jun 29, 2025	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021
No. shares of common stock outstanding¹	1,251,321,000	1,265,621,000	1,298,760,000	1,325,117,010	1,369,877,920	1,419,536,810
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	4,135,824)	4,906,590)	3,999,495)	4,654,164)	2,541,751)	2,377,007)
FCFE per share³	3.31	3.88	3.08	3.51	1.86	1.67
Share price^1, 4	311.35	102.00	79.73	65.58	46.30	57.90
Valuation Ratio
P/FCFE⁵	94.20	26.31	25.89	18.67	24.95	34.58
Benchmarks
P/FCFE, Competitors⁶
Advanced Micro Devices Inc.	—	46.56	109.67	241.70	33.46	44.72
Analog Devices Inc.	—	23.16	29.30	22.28	24.14	34.67
Applied Materials Inc.	—	34.31	17.05	17.53	19.17	27.20
Broadcom Inc.	—	64.89	26.03	30.06	14.62	22.35
Intel Corp.	—	—	—	—	—	14.25
KLA Corp.	67.04	40.28	25.11	26.78	9.01	28.06
Micron Technology Inc.	—	142.55	—	—	18.66	37.24
NVIDIA Corp.	49.15	53.74	65.45	151.07	54.83	35.22
Qualcomm Inc.	—	14.86	18.57	11.97	19.13	17.93
Texas Instruments Inc.	—	65.85	42.96	37.61	23.88	21.87
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	—	54.76	45.81	47.55	29.02	24.87
P/FCFE, Industry
Information Technology	—	45.13	36.69	33.14	26.97	27.38

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 4,135,824,000 ÷ 1,251,321,000 = 3.31

⁴ Closing price as at the filing date of Lam Research Corp. Annual Report.

⁵ 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 311.35 ÷ 3.31 = 94.20

⁶ Click competitor name to see calculations.

The analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio reveals a volatile valuation trajectory characterized by an initial period of contraction, a phase of stabilization, and a final, significant expansion.

FCFE Performance and Share Price Correlation: FCFE per share exhibited a general upward trend from 2021 to 2025, rising from US$ 1.67 to a peak of US$ 3.88. This growth suggests an improvement in the company's ability to generate cash available to shareholders. However, a reversal is noted in 2026, where FCFE per share declines to US$ 3.31. In contrast, the share price shows an aggressive upward trajectory, particularly in the final period, escalating from US$ 102.00 in 2025 to US$ 311.35 in 2026.
P/FCFE Ratio Trends: The P/FCFE ratio underwent a notable decline between June 2021 and June 2023, dropping from 34.58 to 18.67. This compression indicates that during this interval, cash flow growth outpaced the increase in share price, or the market applied a lower valuation multiple to the equity. Following this low, the ratio stabilized between 25.89 and 26.31 during the 2024 and 2025 periods.
Valuation Divergence in 2026: A stark divergence is observed in 2026, as the P/FCFE ratio spikes to 94.20. This exponential increase is the result of a disproportionate surge in the share price occurring simultaneously with a decline in FCFE per share. This pattern indicates an extreme premium in valuation, suggesting that the market price is no longer aligned with current free cash flow generation, potentially reflecting high expectations for future growth or a significant shift in market sentiment.