Lam Research Corp (LRCX) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in deposition and etch, which entail the buildup of layers on a semiconductor...
Lam Research Corp (LRCX) currently trades at a P/E ratio of 49.23 (historical range: 8.91–80.83, median: 23.71), placing it at the 90th percentile — expensive relative to its history, P/S ratio of 15.23 (range: 2.40–25.01, 90th percentile — expensive relative to its history), EV/EBITDA of 44.27 (range: 7.70–72.81, 90th percentile).
Over the historical period (2021-09-13 to 2026-10-16), Lam Research Corp's P/E ratio has expanded by 98% over the observed period (from an average of 18.4 to 36.5).
Lam Research Corp trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 49.23 | 23.71 | 90th | expensive relative to its history |
| P/S Ratio | 15.23 | 6.25 | 90th | expensive relative to its history |
| EV/EBITDA | 44.27 | 21.01 | 90th | expensive relative to its history |
| FCF Yield | 1.82% | 4.12% | 9th | expensive relative to its history |
Lam Research Corp (LRCX) Valuation & P/E History
Lam Research Corp (LRCX) is a US-listed stock operating in the Industrials sector, specifically the Special Industry Machinery, Nec industry currently trading at $263.74 with a market capitalization of $330.1 billion. This page provides historical valuation analysis for LRCX based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 49.23 is above the historical median of 23.71, placing LRCX at the 90th percentile of its valuation range. The P/S ratio of 15.23 compares to a median of 6.25.
LRCX Valuation Metrics & Historical Range
The valuation table above shows Lam Research Corp's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether LRCX is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests LRCX is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Lam Research Corp.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is LRCX Overvalued or Undervalued?
Lam Research Corp trades well above its own historical valuation range across most metrics. The overall valuation percentile of 90 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive LRCX is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full LRCX analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.LRCX trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.