Using the industry peer median P/E multiple (trailing + forward), Lam Research Corporation (LRCX) has a fair value of $139.03 based on 8 comparable companies in the Semiconductors industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Lam Research CorporationLRCX | 275,220 | 51.4x | 53.2x |
| Micron Technology, Inc.MU | 430,894 | 50.3x | 6.9x |
| Applied Materials, Inc.AMAT | 270,054 | 39.3x | 36.3x |
| KLA CorporationKLAC | 192,316 | 48.2x | 40.0x |
| Texas Instruments IncorporatedTXN | 177,859 | 35.8x | 30.4x |
| Arista Networks, Inc.ANET | 156,032 | 45.1x | 43.0x |
| Uber Technologies, Inc.UBER | 146,581 | 14.9x | 21.3x |
| QUALCOMM IncorporatedQCOM | 140,314 | 26.2x | 11.0x |
| Intuit Inc.INTU | 120,829 | 31.8x | 18.7x |
| Industry Median | 37.6x | 25.9x | |
| (*) Profit after tax | 5,358 | 5,178 | |
| Equity Value | 201,303 | 157,433 | |
| (/) Outstanding shares | 1,290 | 1,290 | |
| Fair Price | $156 | $122 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.