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Shares of Lam Research (LRCX) currently trade at 26.4 times the company’s adjusted earnings of the last twelve months, which adds back stock-based pay after tax. That valuation is steep for a chip equipment maker whose sales shrank in each of the two years to September 2024. But a share bought today also buys the profit expected over the next two years. So what are you really paying for each share of Lam Research today?

Lam Research’s Price On Two Years Of Expected Profit

Based on the consensus forecast, Lam Research stock trades at 19.2 times its fiscal 2027 earnings, compared with 26.4 times its adjusted earnings of the last twelve…