Lam Research - Comparative Multiple Analysis

Lam Research (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Lam Research

WikiWealth compares Lam Research's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Lam Research's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Lam Research.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Lam Research's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Lam Research's Analysis

How does this work? The Comparative Investment Analysis determines the value of Lam Research by comparing Lam Research financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Lam Research.

See the Lam Research cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Lam Research.

Also, see the Lam Research's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Lam Research's valuation conclusion for a quick summary.