Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Lam Research Corporation (0JT5.L)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$151.18 - $848.45$275.91
Multi-Stage$89.25 - $97.62$93.36
Blended Fair Value$184.63
Current Price$131.09
Upside40.85%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS11.84%25.77%0.900.800.710.640.570.510.530.240.190.15
YoY Growth--12.82%12.23%11.36%12.15%10.68%-3.17%120.52%26.33%27.88%64.06%
Dividend Yield--0.68%0.97%1.14%1.71%0.92%1.52%2.29%1.55%1.12%1.63%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,810.43
(-) Cash Dividends Paid (M)1,180.54
(=) Cash Retained (M)4,629.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,162.09726.30435.78
Cash Retained (M)4,629.904,629.904,629.90
(-) Cash Required (M)-1,162.09-726.30-435.78
(=) Excess Retained (M)3,467.813,903.594,194.11
(/) Shares Outstanding (M)1,281.451,281.451,281.45
(=) Excess Retained per Share2.713.053.27
LTM Dividend per Share0.920.920.92
(+) Excess Retained per Share2.713.053.27
(=) Adjusted Dividend3.633.974.19
WACC / Discount Rate8.03%8.03%8.03%
Growth Rate5.50%6.50%7.50%
Fair Value$151.18$275.91$848.45
Upside / Downside15.32%110.48%547.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,810.436,188.116,590.347,018.717,474.937,960.808,199.62
Payout Ratio20.32%34.25%48.19%62.13%76.06%90.00%92.50%
Projected Dividends (M)1,180.542,119.683,175.924,360.525,685.697,164.727,584.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.03%8.03%8.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,943.671,962.091,980.52
Year 2 PV (M)2,670.392,721.262,772.60
Year 3 PV (M)3,361.993,458.503,556.84
Year 4 PV (M)4,019.714,174.294,333.30
Year 5 PV (M)4,644.764,869.105,102.03
PV of Terminal Value (M)97,725.88102,446.07107,346.92
Equity Value (M)114,366.39119,631.32125,092.21
Shares Outstanding (M)1,281.451,281.451,281.45
Fair Value$89.25$93.36$97.62
Upside / Downside-31.92%-28.78%-25.53%

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