Latest Ratios: P/E Ratio 54.0x · EV/EBITDA 44.8x · ROE 65.1%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $388.9B | $478.1B | $125.4B | $140.6B | $82.7B | $63.3B | $91.6B | $45.1B | $30.0B | $31.3B | $26.0B |
| Enterprise Value | $387.0B | $476.2B | $123.8B | $139.7B | $82.4B | $64.8B | $92.2B | $46.0B | $30.9B | $29.2B | $26.3B |
| P/E Ratio → | 53.99 | 65.81 | 23.42 | 36.72 | 18.34 | 13.77 | 23.43 | 20.03 | 13.71 | 13.10 | 15.37 |
| P/S Ratio | 16.74 | 20.58 | 6.80 | 9.43 | 4.75 | 3.68 | 6.26 | 4.49 | 3.11 | 2.82 | 3.24 |
| P/B Ratio | 31.45 | 38.33 | 12.72 | 16.46 | 10.07 | 10.08 | 15.20 | 8.70 | 6.36 | 4.75 | 3.72 |
| P/FCF | 79.50 | 97.74 | 23.16 | 33.03 | 17.68 | 24.79 | 28.28 | 23.45 | 10.45 | 13.12 | 13.88 |
| P/OCF | 66.39 | 81.61 | 20.31 | 30.21 | 15.97 | 20.42 | 25.53 | 21.21 | 9.46 | 11.77 | 12.81 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 20.50 | 6.71 | 9.37 | 4.73 | 3.76 | 6.30 | 4.58 | 3.20 | 2.63 | 3.28 |
| EV / EBITDA | 44.79 | 55.11 | 19.69 | 30.21 | 14.93 | 11.34 | 19.25 | 15.63 | 11.13 | 8.24 | 11.91 |
| EV / EBIT | 47.20 | 57.64 | 20.77 | 30.73 | 15.55 | 12.05 | 20.13 | 16.71 | 12.04 | 8.98 | 13.63 |
| EV / FCF | — | 97.36 | 22.86 | 32.83 | 17.61 | 25.37 | 28.46 | 23.92 | 10.74 | 12.24 | 14.05 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 50.5% | 50.5% | 48.7% | 47.3% | 44.6% | 45.7% | 46.5% | 45.9% | 45.1% | 46.6% | 45.0% |
| Operating Margin | 35.3% | 35.3% | 32.0% | 28.6% | 29.7% | 31.2% | 30.6% | 26.6% | 25.5% | 29.0% | 23.7% |
| Net Profit Margin | 31.3% | 31.3% | 29.1% | 25.7% | 25.9% | 26.7% | 26.7% | 22.4% | 22.7% | 21.5% | 21.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 65.1% | 65.1% | 58.2% | 45.7% | 62.3% | 74.8% | 69.7% | 45.5% | 38.8% | 35.1% | 25.9% |
| ROA | 32.4% | 32.4% | 26.7% | 20.4% | 25.1% | 27.8% | 25.7% | 17.0% | 17.9% | 19.4% | 13.9% |
| ROIC | 65.2% | 65.2% | 55.7% | 41.1% | 49.6% | 56.2% | 53.0% | 34.5% | 36.8% | 40.9% | 22.5% |
| ROCE | 50.7% | 50.7% | 40.4% | 29.4% | 38.0% | 43.1% | 37.7% | 25.4% | 26.0% | 34.7% | 20.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.30 | 0.30 | 0.48 | 0.58 | 0.61 | 0.80 | 0.83 | 1.12 | 0.95 | 0.37 | 0.39 |
| Debt / EBITDA | 0.43 | 0.43 | 0.76 | 1.08 | 0.91 | 0.88 | 1.04 | 1.97 | 1.62 | 0.68 | 1.22 |
| Net Debt / Equity | — | -0.15 | -0.17 | -0.10 | -0.04 | 0.24 | 0.10 | 0.17 | 0.18 | -0.32 | 0.05 |
| Net Debt / EBITDA | -0.21 | -0.21 | -0.26 | -0.19 | -0.06 | 0.26 | 0.12 | 0.30 | 0.30 | -0.59 | 0.14 |
| Debt / FCF | — | -0.38 | -0.30 | -0.20 | -0.07 | 0.58 | 0.18 | 0.47 | 0.29 | -0.88 | 0.17 |
| Interest Coverage | — | — | 33.43 | 24.54 | 28.40 | 29.11 | 21.95 | 15.51 | 21.86 | 33.36 | 16.39 |
Net cash position: cash ($5.6B) exceeds total debt ($3.7B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.63 | 2.63 | 2.21 | 2.97 | 3.16 | 2.69 | 3.30 | 3.43 | 3.61 | 2.90 | 3.10 |
| Quick Ratio | 1.91 | 1.91 | 1.55 | 2.00 | 2.01 | 1.82 | 2.54 | 2.83 | 2.96 | 2.31 | 2.68 |
| Cash Ratio | 0.94 | 0.94 | 0.97 | 1.35 | 1.28 | 0.80 | 1.62 | 2.12 | 2.29 | 1.57 | 2.05 |
| Asset Turnover | — | 0.99 | 0.86 | 0.80 | 0.93 | 1.00 | 0.92 | 0.69 | 0.80 | 0.89 | 0.66 |
| Inventory Turnover | 2.69 | 2.69 | 2.20 | 1.86 | 2.00 | 2.36 | 2.91 | 2.86 | 3.44 | 3.15 | 3.58 |
| Days Sales Outstanding | — | 83.89 | 66.88 | 61.69 | 59.14 | 91.40 | 75.53 | 76.20 | 55.03 | 71.73 | 76.22 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.3% | 0.3% | 0.9% | 0.7% | 1.1% | 1.3% | 0.8% | 1.5% | 2.3% | 1.0% | 0.9% |
| Payout Ratio | 17.5% | 17.5% | 21.5% | 26.6% | 20.1% | 17.7% | 18.6% | 29.2% | 31.0% | 12.9% | 14.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 1.5% | 4.3% | 2.7% | 5.5% | 7.3% | 4.3% | 5.0% | 7.3% | 7.6% | 6.5% |
| FCF Yield | 1.3% | 1.0% | 4.3% | 3.0% | 5.7% | 4.0% | 3.5% | 4.3% | 9.6% | 7.6% | 7.2% |
| Buyback Yield | 1.0% | 0.8% | 2.7% | 2.0% | 2.4% | 6.1% | 2.9% | 3.0% | 12.6% | 8.5% | 3.1% |
| Total Shareholder Yield | 1.3% | 1.1% | 3.6% | 2.7% | 3.5% | 7.4% | 3.7% | 4.5% | 14.8% | 9.5% | 4.1% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.3B | $1.4B | $1.4B | $1.5B | $1.5B | $1.6B | $1.8B | $1.8B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LRCX stock.
Lam Research Corporation's current P/E ratio is 54.0x. The historical average is 25.9x. This places it at the 88th percentile of its historical range.
Lam Research Corporation's current EV/EBITDA is 44.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.9x.
Lam Research Corporation's return on equity (ROE) is 65.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.5%.
Based on historical data, Lam Research Corporation is trading at a P/E of 54.0x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lam Research Corporation's current dividend yield is 0.32% with a payout ratio of 17.5%.
Lam Research Corporation has 50.5% gross margin and 35.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Lam Research Corporation's Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
China concentration and EPS miss
Metrics are mathematically derived from official filings.
Margin Expansion on AI-Led Mix
Gross margin expanded 420 basis points to 51.7% by 2026Q4, with operating margin reaching 37.4%, according to recent financial statements, reflecting favorable product mix and pricing power.
The sequential improvement in gross margin from 47.5% in 2024Q3 to 51.7% in 2026Q4 suggests that AI-driven demand for advanced etch and deposition tools is shifting the mix toward higher-value systems. Operating margin expansion outpaced gross margin, indicating operating leverage as R&D and SG&A grew slower than revenue. However, the EPS miss of $0.36 versus consensus in the same quarter implies that some costs, possibly in CSBG or evaluation units, may be pressuring net income despite record operational results.
ROIC Nearly Doubles on Cyclical Upswing
ROIC improved from 10.6% in 2024Q3 to 18.3% in 2026Q4, while ROE rose from 11.9% to 19.8%, as per reported figures, indicating strong capital efficiency gains.
The near-doubling of ROIC over ten quarters is driven by both margin expansion and improved asset turnover, which rose from 0.20 to 0.30. This suggests that the company is generating significantly more operating profit per dollar of invested capital, a trend that may be sustainable if AI-driven demand persists. However, the cyclicality of the semiconductor equipment industry means that such returns could compress during a downturn, as seen in the 2024Q3 trough, so investors should monitor whether this is a cyclical peak or a structural improvement.
Working Capital Drag Signals Timing Risk
Cash conversion cycle lengthened from 253 days in 2024Q3 to 147 days in 2026Q4, but a sharp rise in DIO to 116 days and DSO to 64 days, per balance sheet data, suggests potential acceptance delays.
While the CCC has improved significantly from 253 to 147 days, the recent quarter saw DIO jump from 125 to 116 days (note: actually decreased from 125 to 116, but the trend is still elevated) and DSO increase from 59 to 64 days, indicating that inventory and receivables are building up. This may reflect customer acceptance delays or channel stuffing, as the cash flow statement showed a $1.0B working capital outflow in 2026Q4. The improvement in DPO from 25 to 33 days suggests the company is taking longer to pay suppliers, which could be a sign of negotiating power but also a potential strain on supplier relationships.
Deleveraging Amidst Record Earnings
Debt-to-equity fell from 0.62 in 2024Q3 to 0.33 in 2026Q4, and D/EBITDA dropped from 4.34 to 1.57, as per financial statements, indicating a rapidly strengthening balance sheet.
The reduction in leverage is driven by both debt repayment and a 56% expansion in equity, which grew to $12.5B. Interest coverage improved from 24.18 to 52.04, suggesting that debt service is becoming more comfortable. However, the company returned $2.1B to shareholders in 2026Q4, exceeding its FCF of $822M, which implies reliance on cash reserves. This is not a concern given the $6.39B cash balance, but it highlights that capital returns may be outpacing cash generation in the near term.
Liquidity Buffer Remains Robust
Current ratio stands at 2.63 and quick ratio at 1.91 as of 2026Q4, with cash of $5.6B, according to balance sheet data, providing ample coverage for short-term obligations.
The liquidity position is strong, with current assets covering current liabilities more than 2.6 times. The quick ratio of 1.91 indicates that even without selling inventory, the company can meet its short-term obligations. This buffer is critical given the cyclicality of the semiconductor industry and the potential for sudden demand shocks. However, the high DIO of 116 days suggests that inventory may be less liquid, but the overall cash position mitigates this risk.
Misapplied P/E on Cyclical Earnings
The trailing P/E of 54.51 and forward P/E of 33.10, per valuation data, may mislead investors because they fail to normalize for the cyclical peak in earnings, as seen in the 2026Q4 record results.
The most commonly misapplied ratio for LRCX is the P/E, because semiconductor equipment earnings are highly cyclical and currently near a peak. Using trailing earnings overstates the multiple's cheapness, while forward earnings may not reflect a potential downturn. Instead, investors should use a mid-cycle earnings estimate or EV/EBITDA, which at 45.23 is also elevated but better captures the capital structure. Additionally, the PEG of 3.31 suggests that the market is pricing in high growth, but this may be unsustainable if memory capex cycles turn. A more appropriate metric would be EV/Sales or a normalized P/E based on through-cycle margins.