What Is LRCX Fair Value?
Lam Research Corporation (LRCX) fair value estimate using multiple valuation models, updated daily.
As of September 16, 2026, Lam Research Corporation (LRCX) has a composite fair value estimate of $116.47 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $269.23, suggesting the stock is overvalued by 56.7%.
Data as of September 16, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$116.47
vs. current price of $269.23(-56.7%)
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 →
$116.91
-56.6%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 →
$21.20
-92.1%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 →
$46.18
-82.8%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.
$214.41
-20.4%Overvalued
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 $269.23 is 56.6% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $6.68B | $5.83B |
| Year 2 | $8.18B | $6.23B |
| Year 3 | $10.03B | $6.66B |
| Year 4 | $12.29B | $7.13B |
| Year 5 | $15.06B | $7.62B |
| Year 6 | $18.46B | $8.15B |
| Year 7 | $22.62B | $8.72B |
| Year 8 | $27.72B | $9.32B |
| Year 9 | $33.97B | $9.97B |
| Year 10 | $41.63B | $10.66B |
| Terminal Value | $352.86B | $90.36B |
What Are LRCX's Key Financial Metrics?
Earnings & Growth
Current Price
$269.23
EPS (TTM)
$5.77
Forward P/E
23.1
Profit Margin
31.3%
Cash & Balance Sheet
Free Cash Flow
3.1B
EBITDA
8.6B
Book Value
$9.97
Total Debt
4.1B
What Do Analysts Say About LRCX?
Low
$290.00
Average
$373.13
High
$500.00
Upside
+38.6%
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 $116.47. The stock is currently trading at $269.23, 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 $269.23 is 56.7% above our estimated fair value of $116.47.
What do Wall Street analysts say about LRCX?
31 analysts cover Lam Research Corporation with a consensus rating of "Strong Buy." The average price target is $373.13, ranging from $290.00 to $500.00. This implies 38.6% upside from the current price.