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Lam Research (NAS:LRCX) GF Value Rank

: 3 (As of Today)
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Lam Research has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Lam Research's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Semiconductors industry and Technology sector, Lam Research's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Lam Research's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Lam Research GF Value Rank Related Terms

Thank you for viewing the detailed overview of Lam Research's GF Value Rank provided by Please click on the following links to see related term pages.

Lam Research (NAS:LRCX) Business Description

Lam Research logo
4650 Cushing Parkway, Fremont, CA, USA, 94538
Lam Research manufactures equipment used to fabricate semiconductors. The firm is focused on the etch, deposition, and clean markets, which are key steps in the semiconductor manufacturing process, especially for 3D NAND flash storage, advanced DRAM, and leading-edge logic/foundry chipmakers. Lam's flagship Kiyo, Vector, and Sabre products are sold in all major geographies to key customers such as Samsung Electronics, Micron, Intel, SK Hynix, and Taiwan Semiconductor Manufacturing.
Christina Corrreia officer: CVP , Chief Accounting Officer 4650 CUSHING PKWY, FREMONT CA 94538
Neil J Fernandes officer: Senior Vice President 4650 CUSHING PKWY, FREMONT CA 94538
Ho Kyu Kang director 4650 CUSHING PKWY, FREMONT CA 94538
Jyoti Mehra director 4650 CUSHING PARKWAY, FREMONT CA 94538
Ava Hahn officer: Chief Legal Officer & SVP 4650 CUSHING PARKWAY, C/O LAM RESEARCH, FREMONT CA 94538
Sohail U Ahmed director 4650 CUSHING PARKWAY, FREMONT CA 94538
Bethany Mayer director C/O IXIA, 26601 W. AGOURA ROAD, CALABASAS CA 91302
Leslie F Varon director 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Kevin Jennings officer: Senior Vice President
Scott Gerald Meikle officer: Senior Vice President 1007 N. 17TH STREET, BOISE ID 83702
Vahid Vahedi officer: Group Vice President LAM RESEARCH CORPORATION, 4650 CUSHING PARKWAY, FREMONT CA 94538
Seshasayee Varadarajan officer: Group Vice President LAM RESEARCH CORPORATION, 4650 CUSHING PARKWAY, FREMONT CA 94538
Timothy Archer officer: Chief Operating Officer 4650 CUSHING PARKWAY, FREMONT CA 94538