---
title: Lam Research (LRCX) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/lrcx
ticker: LRCX
as_of: 2026-10-18
sector: Technology
industry: Semiconductors
---
# Lam Research (LRCX)

Lam Research (LRCX) closed at $263.94 on Oct 16, 2026, overvalued by 147% vs its model value of $106.98 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $263.94 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $106.98 |
| Price vs model | overvalued by 147% vs model |
| Range of that model | $81.36 – $158.03 |
| Market value | $330.3B |
| P/E (fiscal 2026) | 45.8 |
| Net margin (fiscal 2026) | 31.3% |
| Free cash flow (fiscal 2026) | $4.9B |
| Dividend yield (trailing twelve months) | 0.42% |
| Beta | 1.85 |
| Cost of capital (WACC) | 11.52% |
| Business classification | Cyclical (High revenue growth (~25% recent), High profitability (31% net margin), Moderately volatile earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Largest companies | #34 | $330.3B | https://sweetvaluelab.com/lists/largest-companies |
| Best performing this year | #38 | +54.2% | https://sweetvaluelab.com/lists/best-performing-this-year |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.42% |
| Dividends per share, last 12 months | $1.11 |
| Dividends / free cash flow (fiscal 2026) | 26.0% |
| Raised | 11+ years in a row |
| Growth over 5 years | 15.5% a year |
| Latest payment | $0.33, ex-date Sep 23, 2026, paid Oct 14, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 27, 2021 | $0.54 |
| To Sep 13, 2022 | $0.62 |
| To Sep 12, 2023 | $0.72 |
| To Sep 17, 2024 | $0.83 |
| To Sep 24, 2025 | $0.95 |
| Trailing twelve months (to Sep 23, 2026) | $1.11 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 18, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $106.98 | $81.36 | $158.03 |
| DCF · Perpetuity growth · 10y | cross check | $136.36 | $103.65 | $200.87 |
| DCF · EBITDA exit · 5y | cross check | $281.21 | $224.81 | $346.76 |
| DCF · EBITDA exit · 10y | cross check | $299.86 | $226.85 | $394.59 |
| P/E · peers | cross check | $258.18 | $229.44 | $288.27 |
| P/E · own history | cross check | $192.01 | $143.41 | $235.77 |
| PEG | sanity check | $238.04 | $238.04 | $238.04 |
| EV/EBITDA · peers | cross check | $255.93 | $206.88 | $291.23 |
| EV/Revenue · peers | cross check | $234.07 | $160.20 | $241.05 |
| Earnings power value | cross check | $39.37 | $35.01 | $45.05 |
| Dividend discount | cross check | $18.75 | $14.05 | $24.40 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 7 open-market sales ($40.5M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 9, 2026 | ARCHER TIMOTHY | President and CEO | Option/RSU exercise (10b5-1 plan) | 30,000 | $900,990 |
| Sep 9, 2026 | ARCHER TIMOTHY | President and CEO | Open-market sell (10b5-1 plan) | 30,000 | $9.6M |
| Sep 9, 2026 | ARCHER TIMOTHY | President and CEO | Option/RSU exercise (10b5-1 plan) | 30,000 | $0 |
| Sep 9, 2026 | Mayer Bethany | Director | Open-market sell | 9,557 | $3.0M |
| Sep 2, 2026 | Varadarajan Seshasayee | Senior Vice President | Open-market sell (10b5-1 plan) | 20,000 | $5.8M |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 24, 2026 | ARS | Annual report to shareholders | https://www.sec.gov/Archives/edgar/data/707549/000114036126037568/ef20082688_ars.pdf |
| Sep 24, 2026 | DEFA14A | Additional proxy materials | https://www.sec.gov/Archives/edgar/data/707549/000114036126037565/ef20082050_defa14a.htm |
| Sep 24, 2026 | DEF 14A | Proxy statement | https://www.sec.gov/Archives/edgar/data/707549/000070754926000047/lrcx-20260924.htm |
| Aug 27, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/707549/000070754926000043/lrcx-20260824.htm |
| Aug 7, 2026 | 10-K | Annual report | https://www.sec.gov/Archives/edgar/data/707549/000070754926000037/lrcx-20260628.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Chase Coleman | 2026-06-30 | 3,163,495 | $1.4B |
| Bridgewater | 2026-06-30 | 938,224 | $406.6M |
| Polen Capital | 2026-06-30 | 859,036 | $372.2M |
| Tepper | 2026-06-30 | 382,500 | $165.7M |

9 tracked managers in all.

## About

Lam Research Corporation is a prominent supplier of equipment vital for semiconductor processing, encompassing its design, production, sales, repair, and ongoing maintenance. These sophisticated systems are fundamental for the creation of integrated circuits. The company's extensive product catalog features a variety of deposition technologies. For tungsten metallization, they provide ALTUS systems that deposit conformal films. SABRE products excel in electrochemical deposition, crucial for copper interconnect transitions and enabling copper damascene manufacturing. SOLA utilizes ultraviolet thermal processing for film treatments, while VECTOR delivers plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition (ALD) solutions. Furthermore, SPEED addresses gapfill applications with its high-density plasma CVD products, and Striker is engineered for single-wafer atomic lay…

---

Source: https://sweetvaluelab.com/stocks/lrcx (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.