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Lam ResearchLRCX +17.98%81 Debt-to-EBITDA is 0.36 as of Jun. 2026, which is 65% below its 10-year median of 1.02. GuruFocus rates LRCX with a GF Score™ of 81/100 and a GF Value™ of $134.71 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 722 Semiconductors companies, Lam Research ranks better than 69.94% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Lam Research's Debt-to-EBITDA or its related term are showing as below:
LRCX'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.46 Med: 1.02 Max: 3.12
Current: 0.46
During the past 13 years, the highest Debt-to-EBITDA Ratio of Lam Research was 3.12. The lowest was 0.46. And the median was 1.02.
LRCX's Debt-to-EBITDA is ranked better than 69.94% of 722
companies
in the Semiconductors industry
Industry Median: 1.415
vs LRCX: 0.46
Lam Research (NAS:LRCX) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Lam Research Debt-to-EBITDA Related Terms
Lam Research Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Lam Research's Debt-to-EBITDA 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.
LRCX vs AMAT, KLAC, TER: Debt-to-EBITDA Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Lam Research's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Lam Research (LRCX) has a Debt-to-EBITDA of 0.36 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Lam Research. This is 65% below median its historical median of 1.02. Over the past decade, Lam Research's Debt-to-EBITDA has ranged from 0.46 to 3.12. According to the industry distribution chart, Lam Research ranks #217 out of 722 companies in the Semiconductors industry, placing it in the top 30.1%.
Is Lam Research's Debt-to-EBITDA too high?
Lam Research's current Debt-to-EBITDA of 0.36 is 65% below median its 10-year median of 1.02. Over the past 10 years, this metric has ranged from a low of 0.46 to a high of 3.12. The Semiconductors industry median Debt-to-EBITDA is 1.42. Lam Research's value of 0.36 is 74.6% below this industry median. Based on the distribution chart, Lam Research ranks #217 out of 722 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Lam Research has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lam Research's Debt-to-EBITDA compare to AMAT and KLAC?
According to the Semiconductors industry distribution chart, Lam Research ranks #217 out of 722 companies for Debt-to-EBITDA. This puts Lam Research in the upper half of its industry. The industry median Debt-to-EBITDA is 1.42. Lam Research's value of 0.36 is 74.6% below this benchmark. Historically, Lam Research's own Debt-to-EBITDA has ranged from 0.46 to 3.12 over the past decade. While the company's 10-year median is 1.02 vs. the industry median of 1.42, Lam Research has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Semiconductors company?
The median Debt-to-EBITDA among Semiconductors companies is 1.42, based on 722 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Debt-to-EBITDA of 0.36 is 74.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Lam Research. For the Semiconductors industry, the median Debt-to-EBITDA is 1.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Debt-to-EBITDA is 0.36, which is 65% below median its own 10-year median of 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Research stock overvalued right now?
Based on GuruFocus' analysis, Lam Research (LRCX) is currently considered Significantly Overvalued. The stock's GF Value™ is $134.71, compared to a current price of $297.72 — trading 121% above its estimated fair value. The current Debt-to-EBITDA is 0.36, which is 65% below median its 10-year median of 1.02 and 74.6% below the Semiconductors industry median of 1.42. Lam Research's overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Lam Research (LRCX), the current Debt-to-EBITDA is 0.36 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lam Research (LRCX) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Research stock appears to be overvalued.
The current stock price of $297.72 is trading 121% above its estimated GF Value™ of $134.71.
GuruFocus considers Lam Research to be Significantly Overvalued.
Key valuation signals for LRCX:
Debt-to-EBITDA: 0.36 (65% below median its 10-year median of 1.02)
GF Value™: $134.71 vs. price of $297.72 (121% above fair value)
Industry Position: 74.6% below the Semiconductors median (#217 of 722)
No single metric tells the full story. See the LRCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in 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 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.
81GF Score
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