Skip to content

Lam Research Corp (LRCX) — WACC Analysis

WACC Breakdown

Lam Research Corp (LRCX) has a weighted average cost of capital (WACC) of 11.6%. The cost of equity is 11.7%, derived from a beta of 1.96 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.3%. The capital structure is 99.0% equity and 1.0% debt.

Interpretation

A WACC of 11.6% is moderate, reflecting the market's balanced risk assessment of Lam Research Corp.

Investors can compare LRCX's WACC of 11.6% against industry peers to gauge its relative financing costs. A beta of 1.96 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

LRCX WACC: 11.59% for Lam Research Corp

Current inputs imply a 11.67% cost of equity and a 4.21% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Lam Research Corp Common Stock (LRCX) WACC Results
Weighted Average Cost of Capital
11.59%
Cost of Equity
11.67%
Risk-Free Rate4.73%
Beta1.96
Market Risk Premium4.23%
Cost of Debt
3.32%
Pre-Tax Cost of Debt4.21%
Tax Rate21.00%
Tax Shield0.88%
Capital Structure
Equity: 99.02%($377.77B)
Debt: 0.98%($3730.49M)
Equity Component
11.55%
99.02% × 11.67%
Debt Component
0.03%
0.98% × 3.32%

Lam Research Corp (LRCX) WACC in context

Lam Research Corp (LRCX) currently screens with an estimated WACC of 11.59%. That blends a 11.67% cost of equity, a 4.21% pre-tax cost of debt, and a 99.02% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What LRCX WACC implies

A 11.59% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates LRCX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.96 and equity accounts for 99.02% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.