Lam Research Corp (LRCX) is overvalued and Teradyne Inc (TER) is overvalued.
Both trade above our estimate of their intrinsic value. LRCX is the closer of the two: -57%, against -58% for TER.
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 $251.80; the price of $398.69 is 58% above that value.
Leak Score 67/100 on 9 of 12 signals
| Metric | LRCX | TER |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $310.96 | $398.69 |
| Intrinsic value | $197.54 | $251.80 |
| Margin of safety | -57% | -58% |
| Leak Score | 65/100 (10/12) | 67/100 (9/12) |
| Market cap | $389.1B | $62.3B |
| Revenue growth, 5 years | 9.7% | 0.4% |
| Operating margin | 35.3% | 30.9% |
| Net margin | 31.3% | 25.8% |
| Return on equity | 65.1% | 36.7% |
| Debt to equity | 0.33 | 0.03 |
| P/E | 54.0x | 54.7x |
| Forward P/E | 26.2x | 34.0x |
| P/B | 31.2x | 18.1x |
| Dividend yield | 0.4% | 0.1% |