LRCX · Intrinsic value
Is Lam Research Corporation (LRCX) overvalued or undervalued?
As of Oct 19, 2026, TickerWorth publishes a fair-value range of $199.44 – $199.44 for Lam Research Corporation (LRCX), against the delayed market price of $278.91: priced above our range. It is a range, not a single number, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
What is LRCX worth?
- Fair-value range
- $199.44 – $199.44
- Market price
- $278.91
- Gap to fair value
- —
- Verdict
- Priced above our range
Reverse DCF, on our cash-flow model rather than the range above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is LRCX's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Technology companies in US
Its strongest point: a profitable, high-quality business. Its weakest: looks expensive on the numbers.
- Value · 22 of 100
Cheaper than 22% of Technology companies in US
- Price vs worth · 27 of 100
- Quality · 78 of 100
More profitable than 78% of Technology companies in US
- Financial health · 65 of 100
Financially stronger than 65% of Technology companies in US
- Growth · 69 of 100
Growing faster than 69% of Technology companies in US
- Momentum · 62 of 100
Outperformed 62% of Technology companies in US over the past year
Confidence: Medium confidence · Scored
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Why LRCX gets a range, not one number
At a recent price of $278.90, Lam Research Corporation (LRCX) sits above every lens we ran: our valuation lenses put the business somewhere between $199.44 and $199.44 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts Lam Research Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 13.9%, with a long-run terminal growth rate of 2.5%. About 61% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — LRCX would need sustained revenue growth of more than 25%/yr to justify today's price, against about 12.7% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, LRCX's modeled DCF value ranges from about $55.34 to $81.56 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Lam Research Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of LRCX's intrinsic value. Figures update as new filings and prices come in.
Every input behind LRCX's DCF
| Input | Value |
|---|---|
| Base-year revenueLAM RESEARCH CORPORATION FY2026 10-K (accession 0000707549-26-000037): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2026 full year. | $23,232,690,000 |
| Base EBIT marginLAM RESEARCH CORPORATION FY2026 10-K (accession 0000707549-26-000037): us-gaap:OperatingIncomeLoss 8,199,795,000 / revenue 23,232,690,000 = 35.29%, FY2026. | 35.3% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 22% → 17% → 13% → 8% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.86 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLAM RESEARCH CORPORATION FY2026 10-K (accession 0000707549-26-000037): WeightedAverageNumberOfDilutedSharesOutstanding = 1,261,102,000 shares, FY2026. | 1,261M |
| Market priceBackup price feed · as of 2026-10-19 15:22 UTC | $278.90 |
Change LRCX's assumptions
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What does Lam Research Corporation do?
What does it do?
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. It operates in the Semiconductor Equipment & Materials industry (Technology sector), headquartered in United States. The company employs roughly 23,300 people.
How does it make money?
The business turns $23.2B in annual revenue into profit. Out of every $100 of sales, about $37 is left as operating profit (operating margin of 37.4%), after a 50% gross margin on the products/services it sells. After all costs, taxes and interest, 31.3% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (0.3× equity), comfortably covers its short-term bills (2.6× current ratio), and is currently profitable.
LRCX insider trading
We have no recent SEC Form 4 insider filings on file for Lam Research Corporation. Form 4 covers US-listed companies only.
Common questions
What is LRCX's intrinsic value?
TickerWorth's valuation lenses put Lam Research Corporation (LRCX) between $199.44 and $199.44 per share, versus a market price of $278.90. They disagree too widely for us to state a single fair value, so we publish the range.
Is LRCX overvalued or undervalued?
At $278.90 the price sits above every lens we ran. We don't call LRCX overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for LRCX?
A WACC of 13.9% and a terminal growth rate of 2.5%.
Is Lam Research stock undervalued?
TickerWorth's fair-value range for Lam Research Corporation (LRCX) is $199.44 – $199.44 against a market price of $278.91. Priced above our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Lam Research (LRCX) DCF valuation and fair value
Our fair-value range for Lam Research Corporation (LRCX) is $199.44 – $199.44, built on a 13.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Lam Research stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $278.91. A model estimate, not investment advice.
Lam Research (LRCX) insider trading
We have no recent SEC Form 4 insider filings on file for Lam Research Corporation (LRCX). Form 4 covers US-listed companies only.
Other ways into the coverage
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.