Lam Research Corporation (LRCX) Financial Ratios
30 years of historical data (1996–2025) · Technology · Semiconductors
EV/EBITDA
↑
54.52
↑+186% vs avg
5yr avg: 19.08
30Y Low4.3·High62.7
P/FCF
↓
63.61
↑+151% vs avg
5yr avg: 25.39
30Y Low7.3·High77.3
P/B Ratio
↓
36.08
↑+180% vs avg
5yr avg: 12.91
30Y Low0.9·High16.5
ROE
↓
58.2%
-6% vs avg
5yr avg: 62.2%
30Y Low-26%·High75%
Debt/EBITDA
↓
0.76
↓-19% vs avg
5yr avg: 0.93
30Y Low0.0·High8.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LRCX Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Lam Research Corporation trades at 66.5x earnings, 187% above its 5-year average of 23.1x, sitting at the 92nd percentile of its historical range. Compared to the Technology sector median P/E of 26.7x, the stock trades at a premium of 149%. On a free-cash-flow basis, the stock trades at 63.6x P/FCF, 151% above the 5-year average of 25.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $344.4B | $125.4B | $140.6B | $82.7B | $63.3B | $91.6B | $45.1B | $30.0B | $31.3B | $26.0B | $14.7B |
| Enterprise Value | $342.8B | $123.8B | $139.7B | $82.4B | $64.8B | $92.2B | $46.0B | $30.9B | $29.2B | $26.3B | $14.0B |
| P/E Ratio → | 66.46 | 23.42 | 36.72 | 18.34 | 13.77 | 23.43 | 20.03 | 13.71 | 13.10 | 15.37 | 16.17 |
| P/S Ratio | 18.68 | 6.80 | 9.43 | 4.75 | 3.68 | 6.26 | 4.49 | 3.11 | 2.82 | 3.24 | 2.50 |
| P/B Ratio | 36.08 | 12.72 | 16.46 | 10.07 | 10.08 | 15.20 | 8.70 | 6.36 | 4.75 | 3.72 | 2.41 |
| P/FCF | 63.61 | 23.16 | 33.03 | 17.68 | 24.79 | 28.28 | 23.45 | 10.45 | 13.12 | 13.88 | 12.54 |
| P/OCF | 55.79 | 20.31 | 30.21 | 15.97 | 20.42 | 25.53 | 21.21 | 9.46 | 11.77 | 12.81 | 10.91 |
P/E links to full P/E history page with 30-year chart
LRCX EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Lam Research Corporation's enterprise value stands at 54.5x EBITDA, 186% above its 5-year average of 19.1x. The Technology sector median is 17.5x, placing the stock at a 212% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.71 | 9.37 | 4.73 | 3.76 | 6.30 | 4.58 | 3.20 | 2.63 | 3.28 | 2.38 |
| EV / EBITDA | 54.52 | 19.69 | 30.21 | 14.93 | 11.34 | 19.25 | 15.63 | 11.13 | 8.24 | 11.91 | 10.27 |
| EV / EBIT | 58.09 | 20.77 | 30.73 | 15.55 | 12.05 | 20.13 | 16.71 | 12.04 | 8.98 | 13.63 | 12.80 |
| EV / FCF | — | 22.86 | 32.83 | 17.61 | 25.37 | 28.46 | 23.92 | 10.74 | 12.24 | 14.05 | 11.93 |
LRCX Profitability
Margins and return-on-capital ratios measuring operating efficiency
Lam Research Corporation earns an operating margin of 32.0%. Operating margins have expanded from 29.7% to 32.0% over the past 3 years, signaling improving operational efficiency. Return on equity of 58.2% is exceptionally high. ROIC of 55.7% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.7% | 48.7% | 47.3% | 44.6% | 45.7% | 46.5% | 45.9% | 45.1% | 46.6% | 45.0% | 44.5% |
| Operating Margin | 32.0% | 32.0% | 28.6% | 29.7% | 31.2% | 30.6% | 26.6% | 25.5% | 29.0% | 23.7% | 18.3% |
| Net Profit Margin | 29.1% | 29.1% | 25.7% | 25.9% | 26.7% | 26.7% | 22.4% | 22.7% | 21.5% | 21.2% | 15.5% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 58.2% | 58.2% | 45.7% | 62.3% | 74.8% | 69.7% | 45.5% | 38.8% | 35.1% | 25.9% | 16.0% |
| ROA | 26.7% | 26.7% | 20.4% | 25.1% | 27.8% | 25.7% | 17.0% | 17.9% | 19.4% | 13.9% | 8.4% |
| ROIC | 55.7% | 55.7% | 41.1% | 49.6% | 56.2% | 53.0% | 34.5% | 36.8% | 40.9% | 22.5% | 13.9% |
| ROCE | 40.4% | 40.4% | 29.4% | 38.0% | 43.1% | 37.7% | 25.4% | 26.0% | 34.7% | 20.0% | 13.0% |
LRCX Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Lam Research Corporation carries a Debt/EBITDA ratio of 0.8x, which is very conservative (74% below the sector average of 2.9x). The company holds a net cash position — cash of $6.4B exceeds total debt of $4.8B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 33.4x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.48 | 0.48 | 0.58 | 0.61 | 0.80 | 0.83 | 1.12 | 0.95 | 0.37 | 0.39 | 0.71 |
| Debt / EBITDA | 0.76 | 0.76 | 1.08 | 0.91 | 0.88 | 1.04 | 1.97 | 1.62 | 0.68 | 1.22 | 3.17 |
| Net Debt / Equity | — | -0.17 | -0.10 | -0.04 | 0.24 | 0.10 | 0.17 | 0.18 | -0.32 | 0.05 | -0.12 |
| Net Debt / EBITDA | -0.26 | -0.26 | -0.19 | -0.06 | 0.26 | 0.12 | 0.30 | 0.30 | -0.59 | 0.14 | -0.52 |
| Debt / FCF | — | -0.30 | -0.20 | -0.07 | 0.58 | 0.18 | 0.47 | 0.29 | -0.88 | 0.17 | -0.61 |
| Interest Coverage | 33.43 | 33.43 | 24.54 | 28.40 | 29.11 | 21.95 | 15.51 | 21.86 | 33.36 | 16.39 | 8.12 |
Net cash position: cash ($6.4B) exceeds total debt ($4.8B)
LRCX Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Lam Research Corporation's current ratio of 2.21x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.55x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 3.16x to 2.21x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.21 | 2.21 | 2.97 | 3.16 | 2.69 | 3.30 | 3.43 | 3.61 | 2.90 | 3.10 | 3.81 |
| Quick Ratio | 1.55 | 1.55 | 2.00 | 2.01 | 1.82 | 2.54 | 2.83 | 2.96 | 2.31 | 2.68 | 3.41 |
| Cash Ratio | 0.97 | 0.97 | 1.35 | 1.28 | 0.80 | 1.62 | 2.12 | 2.29 | 1.57 | 2.05 | 2.82 |
| Asset Turnover | — | 0.86 | 0.80 | 0.93 | 1.00 | 0.92 | 0.69 | 0.80 | 0.89 | 0.66 | 0.48 |
| Inventory Turnover | 2.20 | 2.20 | 1.86 | 2.00 | 2.36 | 2.91 | 2.86 | 3.44 | 3.15 | 3.58 | 3.36 |
| Days Sales Outstanding | — | 66.88 | 61.69 | 59.14 | 91.40 | 75.53 | 76.20 | 55.03 | 71.73 | 76.22 | 78.27 |
LRCX Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Lam Research Corporation returns 1.3% to shareholders annually — split between a 0.3% dividend yield and 1.0% buyback yield. The payout ratio of 21.5% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 1.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.3% | 0.9% | 0.7% | 1.1% | 1.3% | 0.8% | 1.5% | 2.3% | 1.0% | 0.9% | 1.3% |
| Payout Ratio | 21.5% | 21.5% | 26.6% | 20.1% | 17.7% | 18.6% | 29.2% | 31.0% | 12.9% | 14.3% | 20.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 4.3% | 2.7% | 5.5% | 7.3% | 4.3% | 5.0% | 7.3% | 7.6% | 6.5% | 6.2% |
| FCF Yield | 1.6% | 4.3% | 3.0% | 5.7% | 4.0% | 3.5% | 4.3% | 9.6% | 7.6% | 7.2% | 8.0% |
| Buyback Yield | 1.0% | 2.7% | 2.0% | 2.4% | 6.1% | 2.9% | 3.0% | 12.6% | 8.5% | 3.1% | 1.1% |
| Total Shareholder Yield | 1.3% | 3.6% | 2.7% | 3.5% | 7.4% | 3.7% | 4.5% | 14.8% | 9.5% | 4.1% | 2.4% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.4B | $1.4B | $1.5B | $1.5B | $1.6B | $1.8B | $1.8B | $1.8B |
Peer Comparison
Compare LRCX with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LRCXYou | $344B | 66.5 | 54.5 | 63.6 | 48.7% | 32.0% | 58.2% | 55.7% | 0.8 |
 AMAT | $326B | 47.4 | 38.7 | 57.2 | 48.7% | 29.2% | 35.5% | 33.3% | 0.8 |
 KLAC | $228B | 57.1 | 41.1 | 60.9 | 62.3% | 43.1% | 100.8% | 46.5% | 1.1 |
 ASML | $560B | 51.8 | 39.4 | 44.8 | 52.8% | 34.6% | 48.5% | 80.9% | 0.2 |
 TER | $56B | 102.6 | 68.2 | 124.1 | 58.6% | 21.7% | 19.7% | 19.8% | 0.4 |
 ONTO | $15B | 109.7 | 76.8 | 50.6 | 49.7% | 13.2% | 6.8% | 5.7% | 0.1 |
 ACLS | $5B | 36.8 | 32.3 | 42.3 | 44.9% | 14.2% | 11.7% | 9.6% | 0.3 |
 NVMI | $15B | 89.7 | 74.1 | 69.3 | 57.6% | 27.9% | 21.9% | 14.9% | 1.2 |
 CAMT | $7B | 81.5 | — | — | 48.9% | 25.2% | 23.1% | 13.7% | 1.7 |
 MKSI | $19B | 65.8 | 25.7 | 39.0 | 40.4% | 14.4% | 11.7% | 6.5% | 5.2 |
 COHU | $2B | -30.5 | — | 212.1 | 34.5% | -13.3% | -9.0% | -5.7% | — |
| Technology Median | — | 26.7 | 17.5 | 19.5 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonLRCX — Frequently Asked Questions
Quick answers to the most common questions about buying LRCX stock.
What is Lam Research Corporation's P/E ratio?
Lam Research Corporation's current P/E ratio is 66.5x. The historical average is 23.4x. This places it at the 92th percentile of its historical range.
What is Lam Research Corporation's EV/EBITDA?
Lam Research Corporation's current EV/EBITDA is 54.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.9x.
What is Lam Research Corporation's ROE?
Lam Research Corporation's return on equity (ROE) is 58.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 23.3%.
Is LRCX stock overvalued?
Based on historical data, Lam Research Corporation is trading at a P/E of 66.5x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Lam Research Corporation's dividend yield?
Lam Research Corporation's current dividend yield is 0.32% with a payout ratio of 21.5%.
What are Lam Research Corporation's profit margins?
Lam Research Corporation has 48.7% gross margin and 32.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Lam Research Corporation have?
Lam Research Corporation's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.