Lam Research Corp (LRCX) is overvalued and Onto Innovation Inc (ONTO) is overvalued.
Both trade above our estimate of their intrinsic value. ONTO is the closer of the two: -36%, against -57% for LRCX.
Values as of the 22 Sept 2026 close.
A 10.6x revenue multiple, adjusted for growth and margin, values the shares at $197.54; the price of $310.96 is 57% above that value.
Leak Score 65/100 on 10 of 12 signals
A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $209.23; the price of $283.81 is 36% above that value.
Leak Score 27/100 on 3 of 12 signals
| Metric | LRCX | ONTO |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $310.96 | $283.81 |
| Intrinsic value | $197.54 | $209.23 |
| Margin of safety | -57% | -36% |
| Leak Score | 65/100 (10/12) | 27/100 (3/12) |
| Market cap | $389.1B | $13.9B |
| Revenue growth, 5 years | 9.7% | 12.6% |
| Operating margin | 35.3% | 19.8% |
| Net margin | 31.3% | 11.8% |
| Return on equity | 65.1% | 6.8% |
| Debt to equity | 0.33 | 0.77 |
| P/E | 54.0x | 106.2x |
| Forward P/E | 26.2x | 24.1x |
| P/B | 31.2x | 7.2x |
| Dividend yield | 0.4% | — |