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DCF Valuation
Base-case fair value
$121.46
Intrinsic $161.95 · 25% MOS
Current price: $374.18
Base-case summary
Our base-case DCF for Lam Research Corp (LRCX) projects 10 years of free cash flow growth at 13.1% for years 1–5 and 6.6% for years 6–10, anchored to 13.1% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $6.0B in trailing free cash flow, this produces an intrinsic value of $161.95 per share. A 25% safety margin gives a fair value of $121.46, suggesting the stock is currently 68% overvalued against the $374.18 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$6.0B
Cash & equivalents
$4.8B
Total debt
$3.7B
Shares outstanding
1.3B