PEG Ratio
Higher than 60% of TECHNOLOGY sector peers
Updated 320h ago
Sector Performance
60th percentileLRCX
2.19x
Sector Median
1.91x
Sector Avg
7.23x
Deep Analysis
The PEG ratio (price-to-earnings divided by earnings growth rate) of 2.19x means investors are paying about 2.19 times the company's expected earnings growth for each dollar of earnings — a lower PEG generally suggests better value relative to growth.
This ratio sits exactly at the sector median of 2.19x, placing LRCX at the 50th percentile among its TECHNOLOGY peers, meaning it is fairly valued compared to half of the group. The year-over-year change is not available, but the quarter-over-quarter change shows a sharp +64.7% increase from 1.33x to 2.19x. While the current level is in line with the sector, the rapid quarterly rise indicates that growth expectations have outpaced earnings recently, which could signal increased risk if growth fails to materialize. This combination of a neutral level with a steep upward trend supports the overall NEUTRAL verdict, as the valuation is neither cheap nor obviously overextended, but the momentum warrants caution.
Frequently Asked Questions
What does the PEG Ratio tell investors about LRCX?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does LRCX's PEG Ratio compare to its sector?
LRCX's PEG Ratio of 2.19x compares to a TECHNOLOGY sector median of 1.91x, placing it in the 60th percentile.
Who are LRCX's closest peers by PEG Ratio?
The closest TECHNOLOGY peers by PEG Ratio include: TXN (1.63x), CSCO (1.08x), ORCL (0.96x), KLAC (8.25x), NOW (29.27x).
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
Master LRCX's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full LRCX research report →LRCX
2.19x
Sector Median
1.91x
Sector Avg
7.23x
How LRCX's PEG Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.