Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Lam Research Corp., current price multiples

Microsoft Excel
Lam Research Corp. Advanced Micro Devices Inc. Analog Devices Inc. Applied Materials Inc. Broadcom Inc. First Solar Inc. Intel Corp. KLA Corp. Micron Technology Inc. NVIDIA Corp. ON Semiconductor Corp. Qualcomm Inc. Texas Instruments Inc. Semiconductors & Semiconductor Equipment Information Technology
Selected Financial Data
Current share price (P) $530.12
No. shares of common stock outstanding 134,936,209
Growth rate (g) 36.77%
 
Earnings per share (EPS) $34.13
Next year expected EPS $46.68
Operating profit per share $39.88
Sales per share $127.67
Book value per share (BVPS) $46.53
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 15.53 119.65 36.30 15.91 23.83 16.86 16.64 7.60 157.07 18.69 11.00 19.27 25.24 30.39
Price to next year expected earnings 11.36 94.88 35.16 11.84 24.13 14.86 12.00 6.57 122.15 15.87 8.77 15.04 21.54 24.56
Price-earnings-growth (PEG) 0.42 4.58 11.24 0.46 1.25 0.43 0.48 5.49 1.05 0.43 0.69 1.47 1.28
Price to operating profit (P/OP) 13.29 124.95 30.43 13.33 18.80 57.91 15.13 6.81 162.43 15.07 8.97 16.62 23.40 25.23
Price to sales (P/S) 4.15 6.69 8.30 4.03 8.06 8.85 2.14 6.00 2.15 25.44 4.27 3.22 8.42 6.35 7.07
Price to book value (P/BV) 11.39 2.88 2.74 8.51 11.78 3.97 1.33 39.45 1.32 31.04 5.75 7.90 11.56 5.65 10.88

Based on: 10-K (reporting date: 2022-06-26).

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
Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017
Price to earnings (P/E) 13.77 21.03 24.22 13.64 11.70 15.33
Price to operating profit (P/OP) 11.79 18.34 20.40 12.12 8.66 13.68
Price to sales (P/S) 3.68 5.62 5.43 3.10 2.51 3.25
Price to book value (P/BV) 10.10 13.64 10.55 6.39 4.28 3.82

Based on: 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), 10-K (reporting date: 2017-06-25).

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. P/E ratio decreased from 2020 to 2021 and from 2021 to 2022.
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. P/OP ratio decreased from 2020 to 2021 and from 2021 to 2022.
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. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Lam Research Corp. P/BV ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Earnings (P/E)

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

Microsoft Excel
Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017
No. shares of common stock outstanding1 136,987,792 141,953,681 145,625,225 144,532,998 157,579,984 162,454,686
Selected Financial Data (US$)
Net income (in thousands) 4,605,286 3,908,458 2,251,753 2,191,430 2,380,681 1,697,763
Earnings per share (EPS)2 33.62 27.53 15.46 15.16 15.11 10.45
Share price1, 3 463.01 578.99 374.57 206.76 176.69 160.21
Valuation Ratio
P/E ratio4 13.77 21.03 24.22 13.64 11.70 15.33
Benchmarks
P/E Ratio, Competitors5
Advanced Micro Devices Inc. 96.16 45.54 41.66 169.62 68.76
Analog Devices Inc. 31.21 68.31 41.43 31.04 22.17 44.94
Applied Materials Inc. 13.55 22.05 22.31 20.25 9.75 16.16
Broadcom Inc. 20.70 40.73 66.37 47.09 8.14 63.27
First Solar Inc. 17.16 21.56 39.05
Intel Corp. 14.54 9.85 11.02 13.91 10.41
KLA Corp. 16.89 25.97 25.92 18.44 23.02 15.04
Micron Technology Inc. 6.62 13.38 21.80 7.98 3.40 9.20
NVIDIA Corp. 68.09 78.52 67.57 22.79 48.05
ON Semiconductor Corp. 18.26 25.13 73.60 40.58 14.75
Qualcomm Inc. 9.75 17.15 28.06 22.03 31.96
Texas Instruments Inc. 18.88 20.38 27.95 24.47 18.05
P/E Ratio, Sector
Semiconductors & Semiconductor Equipment 23.01 24.27 25.43 19.51 13.94
P/E Ratio, Industry
Information Technology 28.52 29.46 33.09 24.52 24.02

Based on: 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), 10-K (reporting date: 2017-06-25).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 4,605,286,000 ÷ 136,987,792 = 33.62

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

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 463.01 ÷ 33.62 = 13.77

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. P/E ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Operating Profit (P/OP)

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

Microsoft Excel
Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017
No. shares of common stock outstanding1 136,987,792 141,953,681 145,625,225 144,532,998 157,579,984 162,454,686
Selected Financial Data (US$)
Operating income (in thousands) 5,381,822 4,482,023 2,673,802 2,464,732 3,213,299 1,902,132
Operating profit per share2 39.29 31.57 18.36 17.05 20.39 11.71
Share price1, 3 463.01 578.99 374.57 206.76 176.69 160.21
Valuation Ratio
P/OP ratio4 11.79 18.34 20.40 12.12 8.66 13.68
Benchmarks
P/OP Ratio, Competitors5
Advanced Micro Devices Inc. 100.42 39.48 75.77 91.66 51.38
Analog Devices Inc. 26.16 56.12 33.76 24.74 17.62 30.97
Applied Materials Inc. 11.35 18.85 18.50 16.36 6.74 14.35
Broadcom Inc. 16.33 30.77 44.03 36.85 19.42 44.93
First Solar Inc. 13.70 27.05 140.50
Intel Corp. 49.91 10.06 9.72 13.29 9.40
KLA Corp. 15.36 21.69 20.99 15.60 12.01 10.92
Micron Technology Inc. 5.93 12.48 19.51 6.83 3.20 7.98
NVIDIA Corp. 66.13 75.05 66.39 24.81 45.61
ON Semiconductor Corp. 14.72 19.70 49.43 19.86 10.92
Qualcomm Inc. 7.95 15.84 23.32 12.60 103.26 30.15
Texas Instruments Inc. 16.29 17.67 26.53 21.46 15.00
P/OP Ratio, Sector
Semiconductors & Semiconductor Equipment 21.34 21.98 22.57 16.78 12.57
P/OP Ratio, Industry
Information Technology 23.67 25.97 28.23 21.20 17.17

Based on: 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), 10-K (reporting date: 2017-06-25).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 5,381,822,000 ÷ 136,987,792 = 39.29

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

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 463.01 ÷ 39.29 = 11.79

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. P/OP ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Sales (P/S)

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

Microsoft Excel
Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017
No. shares of common stock outstanding1 136,987,792 141,953,681 145,625,225 144,532,998 157,579,984 162,454,686
Selected Financial Data (US$)
Revenue (in thousands) 17,227,039 14,626,150 10,044,736 9,653,559 11,076,998 8,013,620
Sales per share2 125.76 103.03 68.98 66.79 70.29 49.33
Share price1, 3 463.01 578.99 374.57 206.76 176.69 160.21
Valuation Ratio
P/S ratio4 3.68 5.62 5.43 3.10 2.51 3.25
Benchmarks
P/S Ratio, Competitors5
Advanced Micro Devices Inc. 5.38 8.76 10.63 8.59 3.58
Analog Devices Inc. 7.14 12.98 9.03 7.06 5.35 6.40
Applied Materials Inc. 3.43 5.63 4.69 3.75 1.87 3.82
Broadcom Inc. 7.00 9.55 7.40 5.62 4.78 6.07
First Solar Inc. 6.88 2.75 3.17 1.74 2.51
Intel Corp. 1.85 2.48 2.96 4.07 3.09
KLA Corp. 6.09 7.80 5.43 4.74 4.57 4.00
Micron Technology Inc. 1.87 2.83 2.73 2.15 1.58 2.30
NVIDIA Corp. 24.67 20.40 17.31 8.06 15.07
ON Semiconductor Corp. 4.17 3.76 3.28 1.56 1.57
Qualcomm Inc. 2.85 4.62 6.20 3.98 3.37 3.54
Texas Instruments Inc. 8.25 8.63 10.81 8.54 6.38
P/S Ratio, Sector
Semiconductors & Semiconductor Equipment 5.79 6.15 5.71 4.60 3.76
P/S Ratio, Industry
Information Technology 6.63 7.69 7.33 5.66 4.71

Based on: 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), 10-K (reporting date: 2017-06-25).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 17,227,039,000 ÷ 136,987,792 = 125.76

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

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 463.01 ÷ 125.76 = 3.68

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. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Book Value (P/BV)

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

Microsoft Excel
Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017
No. shares of common stock outstanding1 136,987,792 141,953,681 145,625,225 144,532,998 157,579,984 162,454,686
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 6,278,366 6,027,188 5,172,494 4,673,865 6,501,851 6,817,451
Book value per share (BVPS)2 45.83 42.46 35.52 32.34 41.26 41.97
Share price1, 3 463.01 578.99 374.57 206.76 176.69 160.21
Valuation Ratio
P/BV ratio4 10.10 13.64 10.55 6.39 4.28 3.82
Benchmarks
P/BV Ratio, Competitors5
Advanced Micro Devices Inc. 2.32 19.21 17.77 20.46 18.30
Analog Devices Inc. 2.35 2.50 4.22 3.61 3.02 3.22
Applied Materials Inc. 7.25 10.60 7.63 6.67 4.73 5.94
Broadcom Inc. 10.23 10.50 7.40 5.09 3.74 5.28
First Solar Inc. 3.09 1.35 1.56 1.05 1.08
Intel Corp. 1.15 2.05 2.84 3.78 2.94
KLA Corp. 40.05 15.98 11.83 8.15 11.39 10.50
Micron Technology Inc. 1.15 1.79 1.50 1.40 1.49 2.51
NVIDIA Corp. 24.95 20.13 15.48 10.10 19.60
ON Semiconductor Corp. 5.61 5.53 4.87 2.60 2.92
Qualcomm Inc. 7.00 15.59 24.00 19.69 82.57 2.56
Texas Instruments Inc. 11.33 11.87 17.02 13.79 11.20
P/BV Ratio, Sector
Semiconductors & Semiconductor Equipment 5.15 6.13 6.02 5.02 4.51
P/BV Ratio, Industry
Information Technology 10.21 11.69 10.81 8.36 7.30

Based on: 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), 10-K (reporting date: 2017-06-25).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 6,278,366,000 ÷ 136,987,792 = 45.83

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

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 463.01 ÷ 45.83 = 10.10

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 required rate of return and its actual rate of return. Lam Research Corp. P/BV ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.