Latest Ratios: P/E Ratio 78.6x · EV/EBITDA 64.5x · ROE 58.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $407.3B | $125.4B | $140.6B | $82.7B | $63.3B | $91.6B | $45.1B | $30.0B | $31.3B | $26.0B | $14.7B |
| Enterprise Value | $405.6B | $123.8B | $139.7B | $82.4B | $64.8B | $92.2B | $46.0B | $30.9B | $29.2B | $26.3B | $14.0B |
| P/E Ratio → | 78.59 | 23.42 | 36.72 | 18.34 | 13.77 | 23.43 | 20.03 | 13.71 | 13.10 | 15.37 | 16.17 |
| P/S Ratio | 22.09 | 6.80 | 9.43 | 4.75 | 3.68 | 6.26 | 4.49 | 3.11 | 2.82 | 3.24 | 2.50 |
| P/B Ratio | 42.67 | 12.72 | 16.46 | 10.07 | 10.08 | 15.20 | 8.70 | 6.36 | 4.75 | 3.72 | 2.41 |
| P/FCF | 75.22 | 23.16 | 33.03 | 17.68 | 24.79 | 28.28 | 23.45 | 10.45 | 13.12 | 13.88 | 12.54 |
| P/OCF | 65.97 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 64.52 | 19.69 | 30.21 | 14.93 | 11.34 | 19.25 | 15.63 | 11.13 | 8.24 | 11.91 | 10.27 |
| EV / EBIT | 68.74 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
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 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.3% | 4.3% | 2.7% | 5.5% | 7.3% | 4.3% | 5.0% | 7.3% | 7.6% | 6.5% | 6.2% |
| FCF Yield | 1.3% | 4.3% | 3.0% | 5.7% | 4.0% | 3.5% | 4.3% | 9.6% | 7.6% | 7.2% | 8.0% |
| Buyback Yield | 0.8% | 2.7% | 2.0% | 2.4% | 6.1% | 2.9% | 3.0% | 12.6% | 8.5% | 3.1% | 1.1% |
| Total Shareholder Yield | 1.1% | 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 |
Geopolitical export control exposure
Based on current market data, LRCX trades at a forward P/E of 66.66, which suggests that investors are pricing in significant long-term earnings expansion driven by the increasing complexity of semiconductor manufacturing processes and the company's critical role in next-generation memory and logic architectures.
The current valuation multiples appear elevated relative to historical averages, implying that the market is discounting the cyclical nature of the WFE industry in favor of the company's structural growth potential. Investors should monitor whether the PEG ratio of 4.08 remains sustainable, as this level of premium pricing requires consistent execution in capturing market share within the logic and foundry segments.
According to reported financial figures, LRCX has improved its ROIC from 10.2% in 2024Q2 to 17.0% in 2026Q3, indicating that the company is successfully compounding capital by leveraging its proprietary etch and deposition technologies to command higher margins in an increasingly complex semiconductor landscape.
The upward trend in ROIC suggests that the company's R&D investments are yielding tangible competitive advantages, particularly in high-aspect-ratio processes where technical barriers to entry remain high. This improvement in capital efficiency warrants further investigation into whether the company can maintain these returns as it expands its footprint beyond the memory sector into logic and advanced packaging.
As reported in recent financial statements, the company's inventory days have fluctuated significantly, reaching 125 days in 2026Q3, which highlights the inherent difficulty in managing a complex global supply chain while balancing customer acceptance timelines for high-value semiconductor manufacturing equipment.
The elevated inventory levels appear to be a structural feature of the business model, necessitated by the need to maintain critical components for specialized tool builds. While asset turnover remains relatively low at 0.28, this is typical for the capital-intensive nature of the WFE industry and should be interpreted as a reflection of the long lead times required for tool delivery.
The P/E ratio is frequently misapplied to LRCX, as it obscures the underlying cash flow volatility caused by customer acceptance accounting and the cyclical nature of semiconductor capital expenditure, which can lead to distorted perceptions of the company's true earning power during different phases of the cycle.
Investors should prioritize EV/EBITDA or free cash flow yield over P/E, as these metrics better account for the company's capital structure and the significant non-cash charges associated with its manufacturing operations. Relying solely on P/E may lead to an incomplete assessment of the company's valuation, particularly when comparing it to peers with different revenue recognition policies or capital intensities.
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 78.6x. The historical average is 23.4x. This places it at the 100th percentile of its historical range.
Lam Research Corporation's current EV/EBITDA is 64.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.9x.
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%.
Based on historical data, Lam Research Corporation is trading at a P/E of 78.6x. This is at the 100th 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 0.27% with a payout ratio of 21.5%.
Lam Research Corporation has 48.7% gross margin and 32.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Lam Research Corporation's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.