Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Lam Research Corp. (NASDAQ:LRCX)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Lam Research Corp., current price multiples

Microsoft Excel LibreOffice Calc
Lam Research Corp. Advanced Micro Devices Inc. Analog Devices Inc. Apple Inc. Applied Materials Inc. Broadcom Inc. Cisco Systems Inc. Intel Corp. Micron Technology Inc. NVIDIA Corp. Qualcomm Inc. Texas Instruments Inc. Technology Hardware & Equipment Technology
Selected Financial Data
Current share price (P) $336.61
No. shares of common stock outstanding 145,625,225
Growth rate (g) 22.09%
 
Earnings per share (EPS) $15.46
Next year expected EPS $18.88
Operating profit per share $18.36
Sales per share $68.98
Book value per share (BVPS) $35.52
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 21.77 273.65 31.71 35.58 20.03 55.13 14.77 10.39 8.75 115.06 30.48 25.91 28.86 32.51
Price to next year expected earnings 17.83 351.07 30.27 26.67 16.86 54.57 13.34 9.22 7.04 94.36 27.87 21.45 24.20 27.88
Price-earnings-growth (PEG) 0.99 6.70 1.06 1.07 53.36 1.37 0.82 0.36 5.25 3.26 1.25 1.50 1.96
Price to operating profit (P/OP) 18.33 147.88 25.26 30.75 16.18 43.14 12.16 9.93 7.49 113.04 17.43 22.72 24.78 28.69
Price to sales (P/S) 4.88 13.86 7.21 7.56 3.71 6.57 3.36 3.04 2.36 29.47 5.51 9.04 6.53 7.45
Price to book value (P/BV) 9.48 33.01 3.69 21.73 6.60 5.96 4.37 2.82 1.54 26.36 27.23 14.60 10.80 9.68

Based on: 10-K (filing date: 2020-08-18).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Lam Research Corp., historical price multiples

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
Price to earnings (P/E) 24.22 13.64 11.70 15.33 15.82 17.38
Price to operating profit (P/OP) 20.40 12.12 8.66 13.68 13.46 14.45
Price to sales (P/S) 5.43 3.10 2.51 3.25 2.46 2.17
Price to book value (P/BV) 10.55 6.39 4.28 3.82 2.45 2.23

Based on: 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), 10-K (filing date: 2015-08-13).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Lam Research Corp.’s P/E ratio increased from 2018 to 2019 and from 2019 to 2020.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Lam Research Corp.’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Lam Research Corp.’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Lam Research Corp.’s P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
No. shares of common stock outstanding1 145,625,225 144,532,998 157,579,984 162,454,686 160,260,009 158,186,976
Selected Financial Data (US$)
Net income (in thousands) 2,251,753  2,191,430  2,380,681  1,697,763  914,049  655,577 
Earnings per share (EPS)2 15.46 15.16 15.11 10.45 5.70 4.14
Share price1, 3 374.57 206.76 176.69 160.21 90.21 72.01
Valuation Ratio
P/E ratio4 24.22 13.64 11.70 15.33 15.82 17.38
Benchmarks
P/E Ratio, Competitors5
Advanced Micro Devices Inc. 169.62 68.76 282.39
Analog Devices Inc. 31.04 22.17 44.94 26.07 27.06
Apple Inc. 20.00 16.07 18.32 13.49 12.46
Applied Materials Inc. 20.25 9.75 16.16 20.68 15.88
Broadcom Inc. 47.09 8.14 63.27 28.48
Cisco Systems Inc. 15.46 17.69 1,964.84 16.37 14.69 14.82
Intel Corp. 13.91 10.41 22.15 16.72 11.85
Micron Technology Inc. 7.98 3.40 9.20 6.25
NVIDIA Corp. 67.57 22.80 48.05 36.34 28.97 19.77
Qualcomm Inc. 22.03 31.96 17.37 17.18
Texas Instruments Inc. 24.47 18.05 27.77 21.45 17.66
P/E Ratio, Sector
Technology Hardware & Equipment 19.47 16.73 20.19 16.96 13.48
P/E Ratio, Industry
Technology 24.18 23.18 27.34 21.75 19.33

Based on: 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), 10-K (filing date: 2015-08-13).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 2,251,753,000 ÷ 145,625,225 = 15.46

3 Closing price as at the filing date of Lam Research Corp.’s Annual Report.

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 374.57 ÷ 15.46 = 24.22

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Lam Research Corp.’s P/E ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
No. shares of common stock outstanding1 145,625,225 144,532,998 157,579,984 162,454,686 160,260,009 158,186,976
Selected Financial Data (US$)
Operating income (in thousands) 2,673,802  2,464,732  3,213,299  1,902,132  1,074,256  788,039 
Operating profit per share2 18.36 17.05 20.39 11.71 6.70 4.98
Share price1, 3 374.57 206.76 176.69 160.21 90.21 72.01
Valuation Ratio
P/OP ratio4 20.40 12.12 8.66 13.68 13.46 14.45
Benchmarks
P/OP Ratio, Competitors5
Advanced Micro Devices Inc. 91.66 51.38 59.52
Analog Devices Inc. 24.74 17.62 30.97 21.85 22.69
Apple Inc. 17.29 13.49 14.44 10.27 9.34
Applied Materials Inc. 16.36 6.74 14.35 16.54 12.92
Broadcom Inc. 36.85 19.42 44.93 23.80
Cisco Systems Inc. 12.73 14.46 17.56 13.14 12.46 12.36
Intel Corp. 13.29 9.40 11.86 13.40 9.66
Micron Technology Inc. 6.83 3.20 7.98 106.63 6.04
NVIDIA Corp. 66.38 24.82 45.61 31.30 23.81 16.42
Qualcomm Inc. 12.60 103.26 30.15 15.26 15.68
Texas Instruments Inc. 21.46 15.00 16.81 16.07 12.34
P/OP Ratio, Sector
Technology Hardware & Equipment 16.72 13.41 15.17 13.01 10.50
P/OP Ratio, Industry
Technology 21.34 17.83 19.87 17.13 14.77

Based on: 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), 10-K (filing date: 2015-08-13).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,673,802,000 ÷ 145,625,225 = 18.36

3 Closing price as at the filing date of Lam Research Corp.’s Annual Report.

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 374.57 ÷ 18.36 = 20.40

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Lam Research Corp.’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
No. shares of common stock outstanding1 145,625,225 144,532,998 157,579,984 162,454,686 160,260,009 158,186,976
Selected Financial Data (US$)
Revenue (in thousands) 10,044,736  9,653,559  11,076,998  8,013,620  5,885,893  5,259,312 
Sales per share2 68.98 66.79 70.29 49.33 36.73 33.25
Share price1, 3 374.57 206.76 176.69 160.21 90.21 72.01
Valuation Ratio
P/S ratio4 5.43 3.10 2.51 3.25 2.46 2.17
Benchmarks
P/S Ratio, Competitors5
Advanced Micro Devices Inc. 8.59 3.58 2.28 3.08 0.38
Analog Devices Inc. 7.06 5.35 6.40 6.57 5.49
Apple Inc. 4.25 3.60 3.86 2.86 2.85
Applied Materials Inc. 3.75 1.87 3.82 3.29 2.26
Broadcom Inc. 5.62 4.78 6.07 5.48 5.69
Cisco Systems Inc. 3.52 3.96 4.38 3.28 3.20 2.71
Intel Corp. 4.07 3.09 3.39 2.90 2.44
Micron Technology Inc. 2.15 1.58 2.30 1.44 1.12
NVIDIA Corp. 17.30 8.06 15.07 8.76 3.55 2.66
Qualcomm Inc. 3.98 3.37 3.54 4.21 3.58
Texas Instruments Inc. 8.54 6.38 6.83 5.77 4.06
P/S Ratio, Sector
Technology Hardware & Equipment 4.41 3.76 3.91 3.16 2.81
P/S Ratio, Industry
Technology 5.54 4.82 5.06 4.20 3.72

Based on: 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), 10-K (filing date: 2015-08-13).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 10,044,736,000 ÷ 145,625,225 = 68.98

3 Closing price as at the filing date of Lam Research Corp.’s Annual Report.

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 374.57 ÷ 68.98 = 5.43

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Lam Research Corp.’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
No. shares of common stock outstanding1 145,625,225 144,532,998 157,579,984 162,454,686 160,260,009 158,186,976
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 5,172,494  4,673,865  6,501,851  6,817,451  5,894,517  5,103,144 
Book value per share (BVPS)2 35.52 32.34 41.26 41.97 36.78 32.26
Share price1, 3 374.57 206.76 176.69 160.21 90.21 72.01
Valuation Ratio
P/BV ratio4 10.55 6.39 4.28 3.82 2.45 2.23
Benchmarks
P/BV Ratio, Competitors5
Advanced Micro Devices Inc. 20.46 18.30 19.87 31.66
Analog Devices Inc. 3.61 3.02 3.22 4.35 3.72
Apple Inc. 12.21 8.93 6.61 4.81 5.57
Applied Materials Inc. 6.67 4.73 5.94 4.93 2.87
Broadcom Inc. 5.09 3.74 5.28 3.84 8.24
Cisco Systems Inc. 4.57 6.12 5.00 2.38 2.48 2.23
Intel Corp. 3.78 2.94 3.08 2.60 2.21
Micron Technology Inc. 1.40 1.49 2.51 1.48 1.47
NVIDIA Corp. 15.48 10.10 19.60 10.51 3.98 2.82
Qualcomm Inc. 19.69 82.57 2.56 3.12 2.88
Texas Instruments Inc. 13.79 11.20 9.89 7.36 5.30
P/BV Ratio, Sector
Technology Hardware & Equipment 7.28 6.06 4.65 3.72 3.75
P/BV Ratio, Industry
Technology 7.20 6.25 5.50 4.51 4.34

Based on: 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), 10-K (filing date: 2015-08-13).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 5,172,494,000 ÷ 145,625,225 = 35.52

3 Closing price as at the filing date of Lam Research Corp.’s Annual Report.

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 374.57 ÷ 35.52 = 10.55

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Lam Research Corp.’s P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.