DCF Tool

LRCX

Lam Research Corp. – Semiconductor Machinery Manufacturing
Lam Research Corporation is an American supplier of wafer-fabrication equipment and related services to the semiconductor industry. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices and their wiring.
Analysis Results
Intrinsic Value $811.43
Latest Price $928.37
Relative Value 14% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 6.25 5.61
2025 7.46 6.03
2026 8.91 6.47
2027 10.6 6.95
2028 12.7 7.46
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 140 billion. This corresponds to a present value of 73.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 32.5 billion. Adding in the terminal value gives a total present value of 106 billion.

There are presently 131.0 million outstanding shares, so the intrinsic value per share is 811.43.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 13,228,412,000
Current Cash 5,374,697,000
Current Liabilities 4,184,918,000
Current Debt 8,358,000
Non-Cash Working Capital (NCWC) 3,677,155,000
Change in NCWC -392,970,000
EBIT 5,295,176,000
Tax Provision 598,279,000
Depreciation and Amortization 342,432,000
Capital Expenditure -501,568,000
Unlevered Free Cash Flow 4,123,014,726
Current Assets 12,285,235,000
Current Cash 3,657,732,000
Current Liabilities 4,564,759,000
Current Debt 7,381,000
Non-Cash Working Capital (NCWC) 4,070,125,000
Change in NCWC 1,663,391,000
EBIT 5,381,822,000
Tax Provision 587,828,000
Depreciation and Amortization 333,739,000
Capital Expenditure -546,034,000
Unlevered Free Cash Flow 6,223,729,435
Current Assets 11,652,387,000
Current Cash 5,729,135,000
Current Liabilities 3,527,867,000
Current Debt 11,349,000
Non-Cash Working Capital (NCWC) 2,406,734,000
Change in NCWC 586,016,000
EBIT 4,482,023,000
Tax Provision 462,346,000
Depreciation and Amortization 307,151,000
Capital Expenditure -349,096,000
Unlevered Free Cash Flow 4,551,983,194
Current Assets 10,853,535,000
Current Cash 6,710,252,000
Current Liabilities 3,162,442,000
Current Debt 839,877,000
Non-Cash Working Capital (NCWC) 1,820,718,000
Change in NCWC 396,031,000
EBIT 2,673,802,000
Tax Provision 323,225,000
Depreciation and Amortization 268,525,000
Capital Expenditure -203,239,000
Unlevered Free Cash Flow 2,799,489,083
Current Assets 8,560,409,000
Current Cash 5,431,203,000
Current Liabilities 2,371,650,000
Current Debt 667,131,000
Non-Cash Working Capital (NCWC) 1,424,687,000
Change in NCWC -235,351,000
EBIT 2,464,732,000
Tax Provision 255,141,000
Depreciation and Amortization 309,281,000
Capital Expenditure -303,491,000
Unlevered Free Cash Flow 1,978,136,077
Current Assets 9,149,911,000
Current Cash 4,949,595,000
Current Liabilities 3,150,308,000
Current Debt 610,030,000
Non-Cash Working Capital (NCWC) 1,660,038,000
Change in NCWC 600,378,000
EBIT 3,213,299,000
Tax Provision 771,108,000
Depreciation and Amortization 326,395,000
Capital Expenditure -273,469,000
Unlevered Free Cash Flow 3,080,446,133
Current Assets 9,142,498,000
Current Cash 6,041,162,000
Current Liabilities 2,950,115,000
Current Debt 908,439,000
Non-Cash Working Capital (NCWC) 1,059,660,000
Change in NCWC 142,991,000
EBIT 1,902,132,000
Tax Provision 113,910,000
Depreciation and Amortization 306,905,000
Capital Expenditure -157,419,000
Unlevered Free Cash Flow 2,075,011,337
Current Assets 9,214,911,000
Current Cash 6,827,934,000
Current Liabilities 2,419,802,000
Current Debt 949,494,000
Non-Cash Working Capital (NCWC) 916,669,000
Change in NCWC -5,983,000
EBIT 1,074,256,000
Tax Provision 46,068,000
Depreciation and Amortization 291,028,000
Capital Expenditure -175,330,000
Unlevered Free Cash Flow 1,132,426,422
Current Assets 6,270,849,000
Current Cash 4,076,486,000
Current Liabilities 2,631,361,000
Current Debt 1,359,650,000
Non-Cash Working Capital (NCWC) 922,652,000
Change in NCWC 268,368,000
EBIT 867,483,000
Tax Provision 85,273,000
Depreciation and Amortization 277,920,000
Capital Expenditure -198,265,000
Unlevered Free Cash Flow 1,115,657,342
Current Assets 4,783,662,000
Current Cash 3,065,644,000
Current Liabilities 1,582,001,000
Current Debt 518,267,000
Non-Cash Working Capital (NCWC) 654,284,000
Change in NCWC 247,493,000
EBIT 677,669,000
Tax Provision 91,074,000
Depreciation and Amortization 292,254,000
Capital Expenditure -145,503,000
Unlevered Free Cash Flow 986,592,038
Current Assets 3,793,829,000
Current Cash 2,497,218,000
Current Liabilities 1,404,475,000
Current Debt 514,655,000
Non-Cash Working Capital (NCWC) 406,791,000
Change in NCWC -229,846,000
EBIT 119,884,000
Tax Provision -47,221,000
Depreciation and Amortization 304,116,000
Capital Expenditure -160,795,000
Unlevered Free Cash Flow 33,359,000
Current Assets 4,415,109,000
Current Cash 2,862,683,000
Current Liabilities 1,426,928,000
Current Debt 511,139,000
Non-Cash Working Capital (NCWC) 636,637,000
Change in NCWC 161,596,000
EBIT 238,599,000
Tax Provision 35,695,000
Depreciation and Amortization 100,825,000
Capital Expenditure -107,272,000
Unlevered Free Cash Flow 352,084,392

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