Stock fact sheet · data as of
Lam Research Corporation (LRCX): fair value, margin of safety and Wheel Score
Ticker symbol LRCX · Technology · Semiconductors · United States · Growth Quality
Is LRCX undervalued?
At 221.43 (close of 5 Nov 2026), LRCX trades 79% over the GLS average fair value of 123.45, with 1 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between DDM (16.33) and Graham Growth (292.87). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, LRCX is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 10, growth score 72, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for LRCX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 56.57 | -74% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 41.11 | -81% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 292.87 | +32% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 121.05 | -45% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 211.24 | -5% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 129.74 | -41% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 167.04 | -25% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 16.33 | -93% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 75.06 | -66% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 3.64 | -98% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 380.41 | +72% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Lam Research Corporation scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 8.9/10 puts LRCX among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are high - ROIC 43.8%, ROE 58.3%, ROA 30.9% - with debt at 0.33 times equity and a free-cash-flow yield of 2.4%.
The dividend yield is 0.50% with a payout ratio of 15% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from System 70%, Customer Support and Other 30% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded Congressional buy was on 15 Oct 2026.
| Piotroski F-score | 7 / 9 | ROIC | 43.8% |
|---|---|---|---|
| GLS Moat | 8.9 / 10 | ROE | 58.3% |
| Debt / equity | 0.33 | ROA | 30.9% |
| Free-cash-flow yield | 2.4% | Payout ratio | 15% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 49: Weak
With a Wheel Score of 49 Lam Research Corporation sits in the Weak band. It fails filter 3, below fair value - trades 79% above our fair value; Value (weak) is its weakest part.
Implied volatility is 61% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. The option chain is deep: 256,630 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 14.5M shares a day on a market cap of $277.1B, with a beta of 1.98 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 79% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 79% above fair value | |
| Premium | Strong | implied volatility 61% | |
| Moat | Strong | moat 8.9/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 95/100 | |
| Option trading | Strong | 67,629 contracts a day, 256,630 open interest | |
| Stability | Good | beta 1.98, $277.1B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 27 Jan 2027, 83 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Lam Research Corporation by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TXN Texas Instruments Incorporated | 311.49 | 135.32 | -130% | 51Fair | $284.6B |
| AMAT Applied Materials, Inc. | 369.40 | 244.93 | -51% | 47Weak | $293.2B |
| INTC Intel Corp. | 58.27 | 19.05 | -206% | 38Weak | $309.7B |
| ARM Arm Holdings plc American Depositary Shares | 191.80 | 32.79 | -485% | 36Weak | $204.8B |
| ADI Analog Devices, Inc. | 406.24 | 138.81 | -193% | 48Weak | $196.8B |
| KLAC KLA Corporation | 149.79 | 72.63 | -106% | 52Fair | $195.2B |
| QCOM QUALCOMM Incorporated | 173.19 | 265.30 | +35% | 49Weak | $184.9B |
| MRVL Marvell Technology, Inc. | 159.80 | 71.58 | -123% | 36Weak | $139.9B |
| ASML ASML Holding N.V. | 1,496.30 | 1,187.25 | -26% | 53Fair | $576.7B |
| AMD Advanced Micro Devices, Inc. | 488.78 | 137.76 | -255% | 43Weak | $797.9B |
| MU Micron Technology, Inc. | 795.23 | 1,637.28 | +51% | 89Prime | $899.7B |
| ASX ASE Technology Holding Co., Ltd. | 37.51 | 18.48 | -103% | 43Weak | $82.8B |
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Start free See the Sunday ScanQuestions about LRCX
Is LRCX undervalued right now?
No: at 221.43 the stock trades 79% above the GLS average fair value of 123.45 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of LRCX and what does it mean?
LRCX scores 49 out of 100 (Weak) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for LRCX?
123.45 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Lam Research Corporation report earnings next?
The next earnings report is due on 27 Jan 2027, 83 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does LRCX have listed options, and how liquid are they?
Yes. The nightly snapshot found 694 listed contracts with 256,630 open interest across all expiries and implied volatility of 61% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.