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 that offers copper damascene manufacturing; SPEED gapfill high-density plasma chemical vapor deposition (CVD) products; Striker single-wafer atomic layer deposition products for dielectric film solutions; and VECTOR plasma-enhanced 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 (34 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $326.25 Implied EV: $406.98B |
What growth rate is the market pricing in at $389?
The market implies +28.5% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +31.5%, reflecting heavy growth investment.
Wide moat driven primarily by margin stability. Revenue Predictability is the area most vulnerable to competitive pressure.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price significantly exceeds estimated intrinsic value while market sentiment is euphoric — elevated risk
