DCF Tool

LRCX

Lam Research Corp. – Semiconductor and Related Device Manufacturing
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. As a trusted, collaborative partner to the world's leading semiconductor companies, the company combines superior systems engineering capability, technology leadership, and unwavering commitment to customer success to accelerate innovation through enhanced device performance. In fact, today, nearly every advanced chip is built with Lam technology. Lam Research is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe..
Analysis Results
Intrinsic Value $695.54
Latest Price $474.12
Relative Value 32% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 27.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 12.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 27.5%, 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)
2022 5.44 4.82
2023 6.93 5.44
2024 8.83 6.15
2025 11.3 6.94
2026 14.4 7.84
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 135 billion. This corresponds to a present value of 65.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 31.2 billion. Adding in the terminal value gives a total present value of 96.5 billion.

There are presently 139.0 million outstanding shares, so the intrinsic value per share is 695.54.

Financial Statements

The following data was to determine the past cash flows.

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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.