Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

Lam Research Corp., current price multiples

	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)	$563.85
No. shares of common stock outstanding	144,009,220
Growth rate (g)	22.09%

Earnings per share (EPS)	$15.64
Next year expected EPS	$19.09
Operating profit per share	$18.57
Sales per share	$69.75
Book value per share (BVPS)	$35.92
Valuation Ratios (Price Multiples)
Price to earnings (P/E)	36.06	327.27	47.09	41.18	26.86	71.02	16.87	11.03	34.26	121.43	35.34	31.62	34.99	37.56
Price to next year expected earnings	29.54	419.86	44.99	29.47	21.87	71.07	15.23	9.79	28.63	99.59	32.08	26.18	29.33	32.21
Price-earnings-growth (PEG)	1.63	—	10.08	1.04	1.18	—	1.57	0.87	1.74	5.54	3.48	1.52	1.82	2.26
Price to operating profit (P/OP)	30.37	176.86	38.37	35.67	22.27	47.12	13.89	10.54	30.65	119.30	29.37	27.72	30.04	33.14
Price to sales (P/S)	8.08	16.58	10.26	8.61	5.65	7.92	3.84	3.23	4.29	31.10	7.81	11.03	7.92	8.60
Price to book value (P/BV)	15.70	39.48	4.79	36.19	9.19	7.92	4.99	3.00	2.36	27.82	30.23	17.81	13.09	11.18

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.

Lam Research Corp., historical price multiples

	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.

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

	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 price^1, 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.	41.43	31.04	22.17	44.94	26.07	27.06
Apple Inc.	32.24	20.00	16.07	18.32	13.49	12.46
Applied Materials Inc.	22.31	20.25	9.75	16.16	20.68	15.88
Broadcom Inc.	66.37	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.	21.80	7.98	3.40	9.20	—	6.25
NVIDIA Corp.	67.57	22.80	48.05	36.34	28.97	19.77
Qualcomm Inc.	28.06	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.

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

	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 price^1, 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.	33.76	24.74	17.62	30.97	21.85	22.69
Apple Inc.	27.92	17.29	13.49	14.44	10.27	9.34
Applied Materials Inc.	18.50	16.36	6.74	14.35	16.54	12.92
Broadcom Inc.	44.03	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.	19.51	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.	23.32	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.

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

	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 price^1, 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.	9.03	7.06	5.35	6.40	6.57	5.49
Apple Inc.	6.74	4.25	3.60	3.86	2.86	2.85
Applied Materials Inc.	4.69	3.75	1.87	3.82	3.29	2.26
Broadcom Inc.	7.40	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.	2.73	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.	6.20	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.

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

	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 price^1, 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.	4.22	3.61	3.02	3.22	4.35	3.72
Apple Inc.	28.33	12.21	8.93	6.61	4.81	5.57
Applied Materials Inc.	7.63	6.67	4.73	5.94	4.93	2.87
Broadcom Inc.	7.40	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.	1.50	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.	24.00	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.

Lam Research Corp. (NASDAQ:LRCX)

Common Stock Valuation Ratios (Price Multiples)

Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)