Explain this page
Arphra AIPlain-English read on Lam Research Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $139.37B | $125.19B | — | — | — | — |
| Enterprise value | — | — | — | $138.51B | $123.55B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 9.29 | 6.70 | — | — | — | — |
| EV / FCF | — | — | — | 32.55 | 22.82 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +2.75% | +4.28% | — | — | — | — |
| Free cash flow yield | — | — | — | +3.05% | +4.32% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +46.53% | +45.69% | +44.63% | +47.32% | +48.71% | +46.68% | +48.05% | +46.63% | +47.37% |
| Operating margin | +30.64% | +31.24% | +29.69% | +28.61% | +32.01% | +30.71% | +30.30% | +30.88% | +30.34% |
| EBITDA margin | +33.41% | +33.15% | +32.35% | +32.91% | +34.41% | +34.08% | +32.66% | +33.89% | +33.89% |
| EBIT margin | +31.31% | +31.22% | +30.39% | +30.50% | +32.32% | +30.92% | +31.97% | +31.34% | +30.58% |
| Pre-tax margin | +29.88% | +30.15% | +29.32% | +29.25% | +32.32% | +29.83% | +31.15% | +31.15% | +30.25% |
| Net margin | +26.72% | +26.73% | +25.89% | +25.68% | +29.06% | +26.91% | +27.39% | +26.69% | +27.00% |
| Cost structure | |||||||||
| Cost of revenue / sales | +53.47% | +54.31% | +55.38% | +52.68% | +51.29% | +53.06% | +53.80% | +51.67% | +54.58% |
| R&D intensity | +10.21% | +9.31% | +9.91% | +12.76% | +11.37% | +11.27% | +11.25% | +11.59% | +11.20% |
| SG&A intensity | +5.67% | +5.14% | +4.78% | +5.83% | +5.33% | +5.38% | +5.46% | +5.29% | +5.45% |
| Effective tax rate | +10.58% | +11.32% | +11.71% | +12.21% | +10.07% | +11.61% | +11.12% | +11.11% | +11.18% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +64.85% | +73.35% | +54.94% | +44.82% | +54.33% | +50.28% | +52.20% | +51.17% | +51.74% |
| Return on assets (ROA) | +24.59% | +26.78% | +24.02% | +20.42% | +25.10% | +22.88% | +23.30% | +22.57% | +23.51% |
| Return on capital (ROC) | +40.66% | +47.69% | +39.14% | +31.53% | +40.37% | +37.16% | +36.68% | +38.11% | +37.10% |
| Return on invested capital (ROIC) | +35.46% | +40.81% | +34.12% | +28.31% | +36.65% | +32.56% | +33.16% | +32.94% | +33.02% |
| Asset turnover | +92.03% | +100.18% | +92.79% | +79.52% | +86.37% | +85.02% | +85.04% | +84.56% | +87.06% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +26.72% | +26.73% | +25.89% | +25.68% | +29.06% | +26.91% | +27.39% | +26.69% | +27.00% |
| Asset turnover (× revenue / assets) | +92.03% | +100.18% | +92.79% | +79.52% | +86.37% | +85.02% | +85.04% | +84.56% | +87.06% |
| Equity multiplier (× assets / equity) | +263.67% | +273.89% | +228.76% | +219.51% | +216.45% | +219.75% | +224.10% | +226.71% | +220.09% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.92 | 1.00 | 0.93 | 0.80 | 0.86 | 0.85 | 0.85 | 0.85 | 0.87 |
| Fixed-asset turnover | 9.90 | 10.46 | 9.39 | 6.92 | 7.59 | — | — | — | — |
| Inventory turnover | 2.91 | 2.36 | 2.00 | 1.86 | 2.20 | — | — | — | — |
| Receivables turnover | 4.83 | 3.99 | 6.17 | 5.92 | 5.46 | — | — | — | — |
| Payables turnover | 9.43 | 9.25 | 20.50 | 12.79 | 11.07 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 75.53 | 91.40 | 59.14 | 61.69 | 66.88 | — | — | — | — |
| Days inventory outstanding (DIO) | 125.51 | 154.75 | 182.14 | 196.06 | 166.28 | — | — | — | — |
| Days payables outstanding (DPO) | 38.72 | 39.45 | 17.80 | 28.54 | 32.97 | — | — | — | — |
| Cash conversion cycle | 162.31 | 206.69 | 223.47 | 229.21 | 200.19 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 0.92 | 0.67 | 1.15 | 1.22 | 1.15 | 1.17 | 1.13 | 1.20 | 1.19 |
| FCF / Net income | 0.83 | 0.55 | 1.04 | 1.11 | 1.01 | 1.07 | 1.02 | 1.06 | 1.03 |
| FCF margin | +22.15% | +14.82% | +26.84% | +28.55% | +29.37% | +28.70% | +27.81% | +28.20% | +27.69% |
| OCF margin | +24.53% | +17.99% | +29.72% | +31.21% | +33.49% | +31.39% | +31.05% | +32.03% | +32.12% |
| CapEx / Revenue | +2.39% | +3.17% | +2.88% | +2.66% | +4.12% | +3.13% | +3.23% | +3.24% | +3.31% |
| CapEx / D&A | 1.14 | 1.64 | 1.46 | 1.10 | 1.97 | — | — | — | — |
| Stock-based comp / Revenue | +1.51% | +1.50% | +1.64% | +1.97% | +1.86% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 2.69 | 3.27 | 3.32 | 2.90 | 4.15 | 5.68 | 7.97 | 9.64 | 10.31 |
| EPS · basic | 2.72 | 3.29 | 3.33 | 2.91 | 4.17 | 5.63 | 7.88 | 9.76 | 10.31 |
| Book value / share | 4.15 | 4.46 | 6.04 | 6.47 | 7.64 | 9.66 | 12.37 | 14.51 | 15.30 |
| Tangible BV / share | 3.03 | 3.31 | 4.73 | 5.13 | 6.24 | 9.66 | 12.37 | 14.51 | 15.30 |
| Sales / share | 10.06 | 12.25 | 12.83 | 11.29 | 14.29 | 18.05 | 23.58 | 27.82 | 29.32 |
| Operating CF / share | 2.47 | 2.20 | 3.81 | 3.52 | 4.78 | 5.66 | 7.32 | 8.91 | 9.42 |
| Free cash flow / share | 2.23 | 1.82 | 3.44 | 3.22 | 4.20 | 5.18 | 6.56 | 7.85 | 8.12 |
| Dividends / share | 0.50 | 0.58 | 0.67 | 0.77 | 0.89 | 1.08 | 1.48 | 1.65 | 1.83 |
| Payout ratio | +18.60% | +17.70% | +20.13% | +26.62% | +21.45% | +22.17% | +22.86% | +22.22% | +23.09% |
| Retention ratio | +81.40% | +82.30% | +79.87% | +73.38% | +78.55% | +77.83% | +77.14% | +77.78% | +76.91% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +17.78% | +1.16% | -14.47% | +23.68% | +25.69% | +32.14% | +16.06% | +6.20% | +12.58% |
| Gross profit · YoY | — | +15.67% | -1.21% | -9.31% | +27.31% | +20.47% | +36.01% | +12.62% | +7.89% | +12.83% |
| Profit | ||||||||||
| Operating income · YoY | — | +20.08% | -3.85% | -17.60% | +38.39% | +20.58% | +30.39% | +18.26% | +4.36% | +12.44% |
| EBITDA · YoY | — | +16.88% | -1.29% | -13.00% | +29.34% | +24.46% | +26.66% | +20.41% | +6.21% | +12.78% |
| Net income · YoY | — | +17.83% | -2.05% | -15.14% | +39.98% | +16.38% | +34.51% | +13.08% | +7.45% | +12.73% |
| Operating | ||||||||||
| EBIT · YoY | — | +17.44% | -1.53% | -14.17% | +31.08% | +20.26% | +36.60% | +13.77% | +3.65% | +12.25% |
| R&D · YoY | — | +7.42% | +7.66% | +10.15% | +10.19% | +24.54% | +31.96% | +19.59% | +2.56% | +13.88% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | +21.56% | +1.53% | -12.65% | +43.10% | +36.83% | +40.27% | +21.03% | +6.95% | +18.29% |
| EPS · basic · YoY | — | +20.96% | +1.22% | -12.61% | +43.30% | +34.93% | +40.13% | +23.76% | +5.67% | +18.12% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $5B | $5.01B | $5.01B | $4.98B | $4.76B | $6.75B | $9.22B | $10.26B | $11.17B |
| Net debt | $576.8M | $1.48B | -$325.52M | -$864.52M | -$1.63B | -$1.56B | -$1.36B | -$2.01B | -$1.87B |
| Net debt / EBITDA | 0.12 | 0.26 | -0.06 | -0.18 | -0.26 | -0.20 | -0.14 | -0.17 | -0.15 |
| Debt / equity | 0.83 | 0.80 | 0.61 | 0.58 | 0.48 | 0.54 | 0.57 | 0.55 | 0.57 |
| Debt / assets | +31.43% | +29.11% | +26.68% | +26.59% | +22.28% | +24.76% | +25.62% | +24.40% | +25.76% |
| Equity / assets | +37.93% | +36.51% | +43.71% | +45.56% | +46.20% | +45.51% | +44.62% | +44.11% | +45.44% |
| Coverage | |||||||||
| EBITDA / interest expense | 23.43 | 30.91 | 30.24 | 26.48 | 35.60 | 30.47 | 29.77 | 30.96 | 30.94 |
| Operating income / interest | 21.49 | 29.13 | 27.75 | 23.02 | 33.11 | 27.46 | 27.62 | 28.21 | 27.70 |
| Interest expense | $208.6M | $184.76M | $186.46M | $185.24M | $178.2M | $259.12M | $335.9M | $388.9M | $413.34M |
| Liquidity | |||||||||
| Current ratio | 3.30 | 2.69 | 3.16 | 2.97 | 2.21 | — | — | — | — |
| Quick ratio | 2.48 | 1.75 | 1.96 | 1.93 | 1.49 | — | — | — | — |
| Cash ratio | 1.25 | 0.77 | 1.28 | 1.35 | 0.97 | — | — | — | — |
| Working capital | $8.12B | $7.72B | $9.04B | $8.54B | $7.95B | — | — | — | — |
| Working capital / revenue | +55.55% | +44.82% | +51.89% | +57.33% | +43.12% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 6.70x | 9.29x |
| Earnings yield | 4.3% | 2.7% |
| FCF yield | 4.3% | 3.1% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 54.3% | 44.8% |
| ROA | 25.1% | 20.4% |
| ROIC | 34.0% | 25.1% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | -0.26 | -0.18 |
| Interest coverage | — | — |
| Current ratio | 2.21x | 2.97x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).