Lam ResearchXSWX:LRCX +1.23%85 Return-on-Tangible-Equity is 85.98% as of Mar. 2026, which is 36% above its 10-year median of 63.38. GuruFocus rates XSWX:LRCX with a GF Score™ of 85/100 and a GF Value™ of CHF109.03. The stock has 6 warning signs investors should review. Among 985 Semiconductors companies, Lam Research ranks better than 97.36% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lam Research's annualized net income for the quarter that ended in Mar. 2026 was CHF7,302 Mil. Lam Research's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF8,492 Mil. Therefore, Lam Research's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 85.98%.
The historical rank and industry rank for Lam Research's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:LRCX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 24.77 Med: 63.38 Max: 101.59
Current: 81.57
During the past 13 years, Lam Research's highest Return-on-Tangible-Equity was 101.59%. The lowest was 24.77%. And the median was 63.38%.
XSWX:LRCX's Return-on-Tangible-Equity is ranked better than 97.36% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs XSWX:LRCX: 81.57
Lam Research (XSWX:LRCX) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lam Research Return-on-Tangible-Equity Related Terms
Lam Research Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lam Research's Return-on-Tangible-Equity 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.
XSWX:LRCX vs : Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lam Research's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 85.98% mean?
Lam Research (XSWX:LRCX) has a Return-on-Tangible-Equity of 85.98% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lam Research and its competitors. This is 36% above median its historical median of 63.38. Over the past decade, Lam Research's Return-on-Tangible-Equity has ranged from 24.77 to 101.59. According to the industry distribution chart, Lam Research ranks #26 out of 985 companies in the Semiconductors industry, placing it in the top 2.6%.
Is Lam Research's Return-on-Tangible-Equity too high?
Lam Research's current Return-on-Tangible-Equity of 85.98% is 36% above median its 10-year median of 63.38. Over the past 10 years, this metric has ranged from a low of 24.77 to a high of 101.59. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. Lam Research's value of 85.98% is 1556.6% above this industry median. Based on the distribution chart, Lam Research ranks #26 out of 985 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to ?
According to the Semiconductors industry distribution chart, Lam Research ranks #26 out of 985 companies for Return-on-Tangible-Equity. This places Lam Research in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.19. Lam Research's value of 85.98% is 1556.6% above this benchmark. Historically, Lam Research's own Return-on-Tangible-Equity has ranged from 24.77 to 101.59 over the past decade. While the company's 10-year median is 63.38 vs. the industry median of 5.19, 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 Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Return-on-Tangible-Equity of 85.98% is 1556.6% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Return-on-Tangible-Equity is 85.98%, which is 36% above median its own 10-year median of 63.38. 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 Return-on-Tangible-Equity of 85.98%. The stock's GF Value™ is CHF109.03, compared to a current price of CHF295.85 — trading 171.3% above its estimated fair value. The current Return-on-Tangible-Equity is 85.98%, which is 36% above median its 10-year median of 63.38 and 1556.6% above the Semiconductors industry median of 5.19. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lam Research (XSWX:LRCX), the current Return-on-Tangible-Equity is 85.98% as of Mar. 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 CHF295.85 is trading 171.3% above its estimated GF Value™ of CHF109.03.
Key valuation signals for XSWX:LRCX:
Return-on-Tangible-Equity: 85.98% (36% above median its 10-year median of 63.38)
GF Value™: CHF109.03 vs. price of CHF295.85 (171.3% above fair value)
Industry Position: 1556.6% above the Semiconductors median (#26 of 985)
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
Get the complete analysis for XSWX:LRCX
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:LRCX has been successfully added to your 
