LRCXNEUTRAL

LRCX EV/EBITDA Analysis

48.5x

Higher than 75% of TECHNOLOGY sector peers

Updated 53h ago·SEC filings & market data

Key Takeaway

The current EV/EBITDA of 48.5x means that for every dollar of LRCX’s earnings before interest, taxes, depreciation, and amortization, investors are paying $48.50 for the company’s total enterprise value (market cap plus debt minus cash).

Sector Performance

75th percentile

LRCX

48.5x

Sector Median

35.5x

Sector Avg

37.4x

Prior Period

49.8x(Jul 2026)

↑ Improving

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Deep Analysis

Compared to the technology sector median of 35.5x, LRCX trades at a premium and ranks in the 75th percentile among its peers. The metric has been decreasing over the last eight quarters, with a year-over-year decline of -17.8% and a quarter-over-quarter decline of -2.6%. This combination of a high valuation level alongside a sustained downward trend suggests that while the stock remains expensive relative to peers, the compression in EV/EBITDA is reducing some of the premium risk as earnings grow or price adjusts. The decreasing trend partly offsets the elevated level, which aligns with a NEUTRAL overall verdict: the metric shows that valuation risk is present but easing, neither clearly bullish nor bearish on its own.

Frequently Asked Questions

What does the EV/EBITDA tell investors about LRCX?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does LRCX's EV/EBITDA compare to its sector?

LRCX's EV/EBITDA of 48.5x compares to a TECHNOLOGY sector median of 35.5x, placing it in the 75th percentile.

Who are LRCX's closest peers by EV/EBITDA?

The closest TECHNOLOGY peers by EV/EBITDA include: NOW (35.5x), INTC (36.2x), TXN (32.7x), CSCO (27.0x), KLAC (51.6x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.