LRCX — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($231.00)
DCF	$409.72	+77.4%
Graham Number	$29.59	-87.2%
Reverse DCF	—	implied g: 26.4%
DDM	$21.42	-90.7%
EV/EBITDA	$231.00	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $4.82B

Near-term growth (yrs 1–5)(%)Rev: 22.1% / EPS: 37.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 13.90%

Computed WACC: 13.90%

Cost of equity (Re)14.07%(Rf 4.30% + β 1.78 × ERP 5.50%)

Cost of debt (Rd)3.76%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)98.48%

Debt weight (D/V)1.52%

Results

Intrinsic Value / share$197.27

Current Price$231.00

Upside / Downside-14.6%

Net Debt (used)-$1.70B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	29.0%	33.0%	37.0%	41.0%	45.0%
7.0%	$476.60	$553.04	$639.13	$735.75	$843.83
8.0%	$375.69	$435.53	$502.89	$578.47	$662.99
9.0%	$306.66	$355.15	$409.72	$470.91	$539.33
10.0%	$256.70	$296.98	$342.30	$393.10	$449.89
11.0%	$219.02	$253.13	$291.48	$334.46	$382.48

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $4.80

Book Value / share($)Yahoo: $8.11

Results

Graham Number$29.59

Current Price$231.00

Margin of Safety-87.2%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 13.90%

Terminal growth rate(%)

Computed WACC: 13.90%

Cost of equity (Re)14.07%(Rf 4.30% + β 1.78 × ERP 5.50%)

Cost of debt (Rd)3.76%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)98.48%

Debt weight (D/V)1.52%

Results

Current Price$231.00

Implied Near-term FCF Growth40.2%

Historical Revenue Growth22.1%

Historical Earnings Growth37.0%

Base FCF (TTM)$4.82B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.04

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$21.42

Current Price$231.00

Upside / Downside-90.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $7.34B

Target EV/EBITDA multipleCurrent: 39.1×

Net Debt($B)Default: -$1.70B

Results

Implied Equity Value / share$231.00

Current Price$231.00

Upside / Downside+0.0%

Implied EV$286.77B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$1.70B	-$1.70B	-$1.70B	-$1.70B	-$1.70B
35.1x	$207.48	$207.48	$207.48	$207.48	$207.48
37.1x	$219.24	$219.24	$219.24	$219.24	$219.24
39.1x	$231.00	$231.00	$231.00	$231.00	$231.00
41.1x	$242.76	$242.76	$242.76	$242.76	$242.76
43.1x	$254.52	$254.52	$254.52	$254.52	$254.52

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