Lam Research Corporation (LRCX) is a publicly traded company in the Technology — Semiconductors industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Lam Research Corporation is a prominent supplier of equipment vital for semiconductor processing, encompassing its design, production, sales, repair, and ongoing maintenance. These sophisticated systems are fundamental for the creation of integrated circuits. The company's extensive product catalog features a variety of deposition technologies. For tungsten metallization, they provide ALTUS systems that deposit conformal films.
Is Lam Research Corporation stock overvalued or undervalued in 2026?
Lam Research Corporation (LRCX) trades at 35.6× earnings (P/E), above the median of the 314 technology companies over $2bn in Kaplio's universe. At the decade median (21.1×) $142 (-41 %); at its sector median (32.0×) $215 (-10 %).
Kaplio overview: Lam Research Corporation
Market cap $299B · 52 weeks $140 – $433 (45 % below the high) · P/E 35.6× · 2027 expected P/E 24.7× · Dividend 0.46 % · 11 years rising · Next earnings January 27, 2027 · expected EPS $2.34 · Closing price, Oct 30 · accounts published Oct 21.
- Valuation: P/E 35.6× (expensive).
- Business: ROIC 44 % (excellent).
- Balance sheet: Net cash/EBITDA 0.2× (solid).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (21.1×) $142 (-41 %); at its sector median (32.0×) $215 (-10 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in technology: 6 of 7 pass
- 3y revenue growth 12.9 %, fails.
- Gross margin 50.5 %, passes.
- FCF / Revenue 21.1 %, passes, near the threshold.
- ROIC 44.1 %, passes.
- SBC / Revenue 1.7 %, passes.
- Net debt / EBITDA −0.2×, passes.
- EV/EBITDA vs own 5y 29.0×, passes.
Against its peers (reference peers) — Lam Research Corporation: P/E 35.6×; EV/EBITDA 29.0×; ROIC 44.1 %; $299B. Applied Materials, Inc. (P/E 33.6×; EV/EBITDA 26.9×; ROIC 23.5 %; $310B), KLA Corporation (P/E 39.5×; EV/EBITDA 32.0×; ROIC 38.4 %; $206B), ASML Holding N.V. (P/E 40.9×; EV/EBITDA 32.8×; ROIC 37.2 %; $604B).
Expensive or cheap against its last ten years?
P/E at each close: today 35.6× · median 21.1× · minimum 9.6× · maximum 93.4× · cheap below 18.0× · expensive above 33.7×. It has been cheaper than today 84% of the time over its last ten years.
Dividend
solid · Yield 0.46 % ($1.01 per share in 2026) · Years raising it ≥ 11 · 5-year growth +15 % a year · Free cash flow coverage 4.2× · With $1,000 invested today you'd collect $4.60 a year ($0.38 a month).
Kaplio's reading: Lam Research Corporation
Updated on October 22, 2026 · accounts published on October 21, 2026
Reading of October 21, 2026: An exceptional business with record margins and returns far above its sector
Lam Research trades at a P/E of 45.3, 114 % above its ten-year median, while its ROIC of 50 % far exceeds the 8 % sector median.
- Is Lam Research expensive or cheap? Lam Research trades at a P/E of 45.3, 114 % above its ten-year median and 41 % above the sector median.
- How is the business doing? Revenue grew 26 % and EPS 39 % over the last 12 months, with a 37 % operating margin against a 27 % average since 2015.
- How strong is the balance sheet? Debt-to-equity is 0.27 and Lam Research held net cash of $1.16 per share in fiscal 2026; the dividend has risen 11 years running.
- Is it growing with real cash or by diluting shareholders? Free cash flow was 21 % of revenue in fiscal 2026, while stock-based pay took just 1.7 %, far below the 10 % healthy limit.
- What to expect from the next earnings? Analysts expect EPS of $2.33 for the quarter due on January 27, 2027, after eight straight beats.
Is Lam Research expensive or cheap?
Over the last 12 months Lam Research trades at a P/E of 45.3, against a ten-year median of 21.1. It has traded at a lower multiple 91 % of the time over the past decade, within a range of 9.6 to 93.4. The sector median P/E is 32.2, so the premium holds against peers too. EV/EBITDA says the same: 32.2× over the last 12 months against a five-year average of 26.6×, above the line that marks expensive in technology. A free cash flow yield of 2.7 % leaves little cushion if growth slows.
How is the business doing?
Lam Research is growing and becoming more profitable at the same time. Revenue rose 26 % over the last 12 months and EPS 39 %, so earnings are outpacing sales. The operating margin of 37 % over the last 12 months compares with a 27 % average across fiscal 2015-2026, and fiscal 2026, at 35 %, was the best of those 12 years. Returns on capital stand out even more: an ROIC of 50 % against a sector median of 8 %, and above 10 % in each of the last ten fiscal years.
How strong is the balance sheet?
The balance sheet carries little risk. Debt-to-equity is 0.27 over the last 12 months and the current ratio of 2.48 covers short-term obligations more than twice. Cash of $4.45 per share exceeded debt of $3.28 in fiscal 2026, leaving net debt to EBITDA at −0.2×, well inside the 2.0× semiconductors tolerate. The Altman Z of 32.7 sits deep in the safe zone and the Piotroski score is 8 of 9. The dividend yields only 0.4 %, but it has grown for 11 consecutive fiscal years and took just 17 % of fiscal 2026 earnings.
Is it growing with real cash or by diluting shareholders?
In technology, reported earnings can flatter a company that pays staff in shares, so the sector is judged on cash conversion, pricing power and dilution. Lam Research passes most of these tests. Free cash flow equalled 21 % of revenue in fiscal 2026, just above the 20 % healthy mark. Stock-based compensation was 1.7 % of revenue, well below the 10 % ceiling. A gross margin of 51 % clears the 45 % bar for semiconductors. The weak spot is growth per share: revenue per share rose 13 % a year over fiscal 2023-2026, short of the 15 % the sector treats as healthy.
What to expect from the next earnings?
Lam Research has beaten EPS estimates in each of the last eight quarters. The latest report, on October 21, 2026, showed $2.20 against $2.18 expected, a narrow 0.9 % beat. For January 27, 2027, analysts expect $2.33 per share. Estimates are edging up: over the last 30 days the 2027 EPS consensus rose 0.5 %, from $9.49 to $9.54 across 22 analysts, and the revenue consensus 0.7 %. Of the 50 analysts covering the stock, 39 rate it a buy, 10 a hold and one a sell.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve Lam Research today?
The Buffett Method would wait for a better price for Lam Research: it yields 1.6% before tax; it asks for 10%. Business quality: 100 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve Lam Research today?
The Lynch Method would wait for a better price for Lam Research: P/E 35.6 with 16% growth; it asks that the P/E not exceed growth. Business quality: 82 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 71.75% |
| Return on Invested Capital | 44.10% |
| Return on Assets | 32.06% |
| Gross Margin | 51.05% |
| Operating Margin | 36.95% |
| Net Margin | 32.34% |
Financial Health
| Debt / Equity | 0.27 |
| Current Ratio | 2.48 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 32.69 |
Price Performance
| 1 month | -29.69% |
| 3 months | -18.40% |
| Year-to-date | +39.68% |
| 1 year | +51.85% |
| 3 years | +294.12% |
| 5 years | +317.44% |
| 10 years | +2393.33% |
Dividend History
Paid in the last 12 months: $1.1100 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-09-23 | $0.3300 |
| 2026-06-17 | $0.2600 |
| 2026-03-04 | $0.2600 |
| 2025-12-03 | $0.2600 |
| 2025-09-24 | $0.2600 |
| 2025-06-18 | $0.2300 |
| 2025-03-05 | $0.2300 |
| 2024-12-11 | $0.2300 |
| 2024-09-17 | $0.2300 |
| 2024-06-18 | $0.2000 |
Amounts adjusted for stock splits.
Related companies: ASML · AMAT · KLAC · NVDA · TSM · 0YXG.L · AVGO · SKHY
Explore sector: Technology · Semiconductors
More sections of LRCX: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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