Companies · LRCX · Semiconductor Equip
What does Lam Research's price assume?
The margin the price assumes
Revenue grows as its record suggests; the operating margin is solved at today's price.
At $235.88 on November 11, 2026, with growth of 9.4% a year, the price assumes an operating margin of 76.9% by year 5.
The price assumes
76.9%
Operating margin by year 5, solved at the price
Its 10-year median
32.1%
Fiscal 2017–2026, adjusted for R&D and leases
Its industry
26.9%
Semiconductor Equip, Damodaran Online, January 2026
The price assumes a margin above the company's own median and above its industry's.
The numbers behind the chart
| Fiscal year | Adjusted operating margin |
|---|---|
| 2017 | 27.7% |
| 2018 | 32.2% |
| 2019 | 28.2% |
| 2020 | 29.0% |
| 2021 | 33.4% |
| 2022 | 33.6% |
| 2023 | 32.1% |
| 2024 | 31.9% |
| 2025 | 34.7% |
| 2026 | 37.9% |
- Revenue growth, years 1 to 5
- 9.4% a yearIts industry's 5-year revenue growth (9.4%), which is lower than the company's own.Damodaran Online, January 2026 industry data, Semiconductor Equip
- Margin path
- From today's margin to 76.9% by year 5Solved at the price. After that, the margin holds.
The growth the price assumes
The operating margin moves to its own median; revenue growth is solved at today's price.
At $235.88 on November 11, 2026, with an operating margin moving to its 10-year median of 32.1% by year 5, the price assumes revenue growth of 26.9% a year for 5 years, slowing to the riskfree rate by year 10.
The price assumes
26.9%
Revenue growth a year, years 1 to 5, solved at the price
Its 10-year growth
14.7%
Revenue, a year on average, from its SEC filings
Its industry
9.4%
Semiconductor Equip, five years, Damodaran Online, January 2026
The price assumes revenue growth above the company's own record and above its industry's.
The numbers behind the chart
| Fiscal year | Revenue growth |
|---|---|
| 2017 | 36.1% |
| 2018 | 38.2% |
| 2019 | −12.9% |
| 2020 | 4.1% |
| 2021 | 45.6% |
| 2022 | 17.8% |
| 2023 | 1.2% |
| 2024 | −14.5% |
| 2025 | 23.7% |
| 2026 | 26.0% |
- Operating margin
- From today's margin to 32.1% by year 5Its own 10-year median, held. After that, the margin holds.SEC filings, fiscal 2017-2026, the median operating margin adjusted for R&D and leases
- Revenue growth, years 1 to 5
- 26.9% a yearSolved at the price. From year 6, it slows each year to the riskfree rate by year 10.
The assumptions both views share
These are neutral settings, the same for every company. Each view holds them and solves for one driver at today's price.
- Reinvestment
- $1.85 of revenue for each $1 investedThe industry's sales-to-capital ratio: how much new capital growth needs.Damodaran Online, January 2026 industry data, Semiconductor Equip
- Cost of capital
- 9.88%The return investors need for the risk: the industry's beta, the market's risk premium, and debt rated Aaa/AAA from its median margin, with a stated 5-year debt maturity. Built by the engine from the parts listed under Sources, each with its date.
- After year 10
- Growth at the riskfree rate, foreverNew investment earns its cost of capital and no more, so growth after year 10 adds no value, and the cost of capital moves to a mature company's.
Worth knowing
- Revenue grew 9.7% a year over five years and grew 14.7% over ten: the record points two ways.
This is a mechanical starting point with neutral assumptions, not a valuation. The story decides.
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Join the waitlistSources
- Price: Qualuation's records, close of November 11, 2026.
- 10-K for the period ended June 28, 2026, filed August 7, 2026 (SEC EDGAR, accession 0000707549-26-000037).
- 10-Q for the period ended September 27, 2026, filed October 22, 2026 (SEC EDGAR, accession 0000707549-26-000054).
- Margin record: SEC filings, fiscal 2017-2026, operating margin adjusted for R&D and leases.
- Industry margin: Damodaran Online, January 2026 industry data, Semiconductor Equip, adjusted for R&D and leases.
- Revenue growth record: SEC filings, revenue, fiscal 2016-2026, the average yearly growth.
- Industry growth: Damodaran Online, January 2026 industry data, Semiconductor Equip, revenue growth over five years.
- Sales to capital: Damodaran Online, January 2026 industry data, Semiconductor Equip.
- US 10-year Treasury yield (FRED), October 29, 2026.
- Less the US default spread (Damodaran Online, July 2026).
- Industry beta, Semiconductor Equip (Damodaran Online, January 2026).
- Equity risk premium (Damodaran Online, October 2026).
- Debt rated Aaa/AAA at its median margin (rating table, Damodaran Online, January 2026).
- The margin the price assumes: solved by the engine at the price on November 12, 2026, with the assumptions above.
- The growth the price assumes: solved by the engine at the price on November 12, 2026, with the margin at its median and the assumptions above.