Lam Research (XSWX:LRCX) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Lam Research Forward PE Ratio Related Terms
Lam Research Forward PE Ratio Historical Data
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The historical data trend for Lam Research's Forward PE 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.
Lam Research Forward PE Ratio Chart
Lam Research Annual Data
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Forward PE Ratio
Lam Research Quarterly Data
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XSWX:LRCX vs : Forward PE Ratio Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Forward PE Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Lam Research's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Lam Research (XSWX:LRCX) has a Forward PE Ratio of 45.94 as of Jul. 03, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Lam Research and its competitors. According to the industry distribution chart, Lam Research ranks #314 out of 545 companies in the Semiconductors industry, placing it in the top 57.6%.
Is Lam Research's Forward PE Ratio too high?
Lam Research's current Forward PE Ratio is 45.94. The Semiconductors industry median Forward PE Ratio is 36.50. Lam Research's value of 45.94 is 25.9% above this industry median. Based on the distribution chart, Lam Research ranks #314 out of 545 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Lam Research has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Lam Research's Forward PE Ratio compare to ?
According to the Semiconductors industry distribution chart, Lam Research ranks #314 out of 545 companies for Forward PE Ratio. This places Lam Research in the lower half of its industry. The industry median Forward PE Ratio is 36.50. Lam Research's value of 45.94 is 25.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Semiconductors company?
The median Forward PE Ratio among Semiconductors companies is 36.50, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Forward PE Ratio of 45.94 is 25.9% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median Forward PE Ratio is 36.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Forward PE Ratio is 45.94. 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?
Lam Research (XSWX:LRCX) has a current Forward PE Ratio of 45.94. The stock's GF Value™ is CHF109.03, compared to a current price of CHF292.25 — trading 168% above its estimated fair value. The current Forward PE Ratio is 45.94 and 25.9% above the Semiconductors industry median of 36.50. Lam Research's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Lam Research (XSWX:LRCX), the current Forward PE Ratio is 45.94 as of Jul. 03, 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 (XSWX:LRCX) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Research stock appears to be overvalued.
The current stock price of CHF292.25 is trading 168% above its estimated GF Value™ of CHF109.03.
Key valuation signals for XSWX:LRCX:
Forward PE Ratio: 45.94
GF Value™: CHF109.03 vs. price of CHF292.25 (168% above fair value)
Industry Position: 25.9% above the Semiconductors median (#314 of 545)
No single metric tells the full story. See the XSWX: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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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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