Is Lam Research Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Lam Research Corp. has moved from expensive to attractive, indicating a shift towards a more favorable assessment of its stock. The company appears to be undervalued based on its strong performance metrics, including a P/E ratio of 54, an EV to EBITDA ratio of 44.43, and a remarkable ROCE of 61.92%.
In comparison to its peers, Lam Research Corp. has a lower P/E ratio than GE Aerospace, which stands at 136.79, and is more attractive than Applied Materials, Inc., which has a P/E of 45.37. The company's recent stock performance has significantly outpaced the S&P 500, with a year-to-date return of 95.92% compared to the index's 13.30%, reinforcing the notion that it is currently undervalued.