Growth & Assumptions

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Market & Balance Sheet Data

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Cash Flow Projection

Year2027202820292030203120322033203420352036
Free Cash Flow7,589.269,266.4911,314.3813,814.8616,867.9418,662.6920,648.422,845.3925,276.1427,965.52
Terminal Value---------360,056.08
Cumulated PVRunning Sum6,837.1714,358.0622,631.0431,731.3141,741.6151,719.4561,664.9271,578.1481,459.21218,114.4
* Scroll horizontally for more yearsAll figures in USD Millions

Valuation Breakdown

Enterprise Value (EV)$218,114.4
(+) Cash & Investments$6,180.44
(-) Total Debt$4,483.75
Equity Value$219,811.09
Shares Outstanding1,248.77
Fair Value Per Share$176.02
All figures in USD Millions

Calculated Fair Value

$176.02
Current Price$231
Margin of Safety-23.80%
Sell

LRCX (LRCX) DCF Valuation Analysis

Independent intrinsic value calculation based on latest financial reports.

Potentially Overvalued

Our LRCX DCF calculator utilizes a two-stage Discounted Cash Flow model to estimate the true value of LRCX stock. As of the most recent quarterly report (12/28/2025), LRCX generated $6,215,611,000 in Trailing Twelve Month (TTM) Free Cash Flow.

Key Valuation Metrics for LRCX

Forward P/E
33.52
Price to Book
28.49
Margin of Safety
-23.8%
Intrinsic Value
$176.02

By discounting LRCX's future cash flows using an expected return of 11%, we can determine if the stock is currently trading at a margin of safety. A negative margin of safety suggests that market expectations may be too high relative to the company's historical cash flow productivity.

Final Verdict

For LRCX to be considered a fair investment at current levels, it would need to sustain a cash flow growth rate of approximately 22.10% for the next five years. This valuation model accounts for LRCX's current cash position of $6,180,440,064 and total debt of $4,483,747,840. Currently trading at a premium to its intrinsic value, investors should carefully consider the growth assumptions required to justify the current price.

Why use DCF for LRCX?

Discounted Cash Flow is widely considered the most accurate method for valuing mature companies like LRCX. Using our Free DCF Calculator, you can customize every assumption in this model to see how it affects the intrinsic value.

Based on Owner Earnings (FCF)
Includes Balance Sheet adjustments
Customizable growth assumptions

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