What Is LRCX Fair Value?
Lam Research Corporation (LRCX) fair value estimate using multiple valuation models, updated daily.
As of October 31, 2026, Lam Research Corporation (LRCX) has a composite fair value estimate of $137.53 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $239.11, suggesting the stock is overvalued by 42.5%.
Data as of October 31, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$137.53
vs. current price of $239.11(-42.5%)
How Is LRCX Fair Value Calculated?
Four independent models estimate what LRCX is worth. Each uses different inputs and assumptions. The composite blends them by weight.
LRCX Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$139.38
-41.7%Overvalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$21.29
-91.1%Overvalued
Inputs used
LRCX Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$49.17
-79.4%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$258.63
+8.2%Fair Value
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $239.11 is 41.7% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $6.81B | $5.95B |
| Year 2 | $8.51B | $6.49B |
| Year 3 | $10.64B | $7.08B |
| Year 4 | $13.30B | $7.72B |
| Year 5 | $16.63B | $8.43B |
| Year 6 | $20.79B | $9.19B |
| Year 7 | $25.98B | $10.03B |
| Year 8 | $32.48B | $10.94B |
| Year 9 | $40.60B | $11.94B |
| Year 10 | $50.75B | $13.03B |
| Terminal Value | $431.16B | $110.70B |
What Are LRCX's Key Financial Metrics?
Earnings & Growth
Current Price
$239.11
EPS (TTM)
$6.71
Forward P/E
19.5
Profit Margin
32.3%
Cash & Balance Sheet
Free Cash Flow
4.5B
EBITDA
10.1B
Book Value
$11.13
Total Debt
3.7B
What Do Analysts Say About LRCX?
Low
$255.00
Average
$364.03
High
$500.00
Upside
+52.2%
LRCX Fair Value FAQ
What is the fair value of LRCX?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), LRCX's estimated fair value is $137.53. The stock is currently trading at $239.11, which makes it overvalued by our analysis.
How is LRCX's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is LRCX overvalued or undervalued?
Based on our analysis, LRCX is overvalued. The current price of $239.11 is 42.5% above our estimated fair value of $137.53.
What do Wall Street analysts say about LRCX?
30 analysts cover Lam Research Corporation with a consensus rating of "Strong Buy." The average price target is $364.03, ranging from $255.00 to $500.00. This implies 52.2% upside from the current price.