PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Lam Research's PE Ratio without NRI is 33.43. Lam Research's 5-Year EBITDA growth rate is 21.00%. Therefore, Lam Research's PEG Ratio for today is 1.59.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Lam Research's PEG Ratio or its related term are showing as below:
LRCX'
s PEG Ratio Range Over the Past 10 Years
Min: 0.23 Med: 0.69 Max: 16.27
Current: 1.59
During the past 13 years, Lam Research's highest PEG Ratio was 16.27. The lowest was 0.23. And the median was 0.69.
LRCX's PEG Ratio is ranked worse than 50.78% of 386
companies
in the Semiconductors industry
Industry Median: 1.575
vs LRCX: 1.59
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Lam Research PEG Ratio Historical Data
The historical data trend for Lam Research's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Lam Research's PEG Ratio
For the Semiconductor Equipment & Materials subindustry, Lam Research's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lam Research's PEG Ratio Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Lam Research's PEG Ratio falls into.
Lam Research PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Lam Research's PEG Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Lam Research (NAS:LRCX) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Lam Research PEG Ratio Related Terms
Thank you for viewing the detailed overview of Lam Research's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lam Research is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.
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