Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company offers ALTUS systems to deposit conformal or selective films for tungsten or molybdenum metallization applications; SABRE electrochemical deposition products for copper interconnect transition, which support copper damascene manufacturing; Striker single-wafer atomic layer deposition products for dielectric film solutions; and VECTOR plasma-enhanced chemical vapor deposition (CVD) products.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (29 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $293.34 Implied EV: $365.61B |
What growth rate is the market pricing in at $269?
The market implies +19.1% Owner Earnings growth, roughly in line with history — reasonably priced.
Standard FCF implies +24.6%, reflecting ongoing growth investment.
Wide moat driven primarily by roic consistency. Revenue Predictability is the area most vulnerable to competitive pressure.
"Market is pessimistic — investigate whether fears are temporary or structural"
Price above estimated intrinsic value despite market fear — investigate whether assumptions need revision
