Lam Research DCF Stock Analysis

Here’s my assumptions for $LRCX ( ▼ 1.39% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.131%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 2%

Historical Data

Revenue growth in the last 10 years (CAGR): 12.09%

Earnings growth in the last 10 years (CAGR): 19.35%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 17.07%

Future Assumptions

End of Year FCF growth: 8%

Growth until end of 2026: 16%

Growth until end of 2034: 8%

Perpetual growth: 3%

Net Debt: -$1.634B

Outstanding Stock Options Present Value Assumption: $0.053B

Restricted Stock Units Present Value Assumption: $0.892B

Stock Valuation based on these assumptions: $124

Last update 08/16/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Lam Research (LRCX) and I don’t plan to add a position in the coming days.