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Lam ResearchLRCX -3.25%85 EV-to-EBIT is 45.90 as of Aug. 06, 2026, which is 191% above its 10-year median of 15.77. GuruFocus rates LRCX with a GF Score™ of 85/100 and a GF Value™ of $144.11 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 685 Semiconductors companies, Lam Research ranks worse than 62.77% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Lam Research's Enterprise Value for the quarter that ended in Jun. 2026 was $540,372 Mil.
Lam Research's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $8,340 Mil.
* 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.
Lam Research EV-to-EBIT Related Terms
Lam Research EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Lam Research's EV-to-EBIT 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.
For the Semiconductor Equipment & Materials subindustry, Lam Research's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Lam Research's EV-to-EBIT falls into.
Lam Research's current Enterprise Value is $382,823 Mil.
Lam Research's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $8,340 Mil.
* 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.
Lam Research (LRCX) has a EV-to-EBIT of 45.90 as of Aug. 06, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Lam Research and its competitors. This is 191% above median its historical median of 15.77. Over the past decade, Lam Research's EV-to-EBIT has ranged from 6.27 to 63.83. According to the industry distribution chart, Lam Research ranks #430 out of 685 companies in the Semiconductors industry, placing it in the top 62.8%.
Is Lam Research's EV-to-EBIT too high?
Lam Research's current EV-to-EBIT of 45.90 is 191% above median its 10-year median of 15.77. Over the past 10 years, this metric has ranged from a low of 6.27 to a high of 63.83. The Semiconductors industry median EV-to-EBIT is 31.99. Lam Research's value of 45.90 is 43.5% above this industry median. Based on the distribution chart, Lam Research ranks #430 out of 685 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Lam Research has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lam Research's EV-to-EBIT compare to AMAT and KLAC?
According to the Semiconductors industry distribution chart, Lam Research ranks #430 out of 685 companies for EV-to-EBIT. This places Lam Research in the lower half of its industry. The industry median EV-to-EBIT is 31.99. Lam Research's value of 45.90 is 43.5% above this benchmark. Historically, Lam Research's own EV-to-EBIT has ranged from 6.27 to 63.83 over the past decade. While the company's 10-year median is 15.77 vs. the industry median of 31.99, Lam Research has consistently been above 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 EV-to-EBIT for a Semiconductors company?
The median EV-to-EBIT among Semiconductors companies is 31.99, based on 685 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current EV-to-EBIT of 45.90 is 43.5% above 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median EV-to-EBIT is 31.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current EV-to-EBIT is 45.90, which is 191% above median its own 10-year median of 15.77. 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 $144.11, compared to a current price of $307.42 — trading 113.3% above its estimated fair value. The current EV-to-EBIT is 45.90, which is 191% above median its 10-year median of 15.77 and 43.5% above the Semiconductors industry median of 31.99. Lam Research's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Lam Research (LRCX), the current EV-to-EBIT is 45.90 as of Aug. 06, 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 $307.42 is trading 113.3% above its estimated GF Value™ of $144.11.
GuruFocus considers Lam Research to be Significantly Overvalued.
Key valuation signals for LRCX:
EV-to-EBIT: 45.90 (191% above median its 10-year median of 15.77)
GF Value™: $144.11 vs. price of $307.42 (113.3% above fair value)
Industry Position: 43.5% above the Semiconductors median (#430 of 685)
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.
85GF Score
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