Lam Research Corp. (NASDAQ:LRCX)

Price to Earnings (P/E) Ratio

The P/E ratio exhibited an initial increase from 18.97 to a peak of 26.3 in early 2021, indicating rising investor expectations relative to earnings during that period. Following this, a gradual decline occurred through 2022, reaching a low around 10.51 to 12.6. The ratio then experienced a marked increase peaking at 33.64 by December 2023, before trending downward again but remaining elevated relative to earlier periods, ending near 32.79 by late 2025. This pattern suggests fluctuating investor sentiment with periods of optimism and correction over the timeline.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio followed a trajectory similar to the P/E ratio, starting at 15.98 and increasing steadily to above 23 through early 2021. A decline ensued during 2022, with values dropping below 9 at the lowest point, followed by a substantial rebound reaching a high of approximately 30.42 in late 2023. Afterwards, the ratio decreased again but maintained relatively high levels compared to the earlier years, culminating near 29.46 in 2025. This indicates a cyclic valuation pattern relative to operating profitability, reflecting shifts in market perception of operating earnings.

Price to Sales (P/S) Ratio

The P/S ratio showed an upward trend from 4.48 in late 2020 to a general peak above 8 in early 2024. The ratio declined following this peak but stabilized around 5 to 7 towards 2025. The lower troughs in 2022 align with broader market valuation dips, while the later peaks parallel the increases seen in other multiples. This suggests sales growth expectations have been largely in step with earnings-based valuations, with sensitivity to market cycles.

Price to Book Value (P/BV) Ratio

The P/BV ratio demonstrated considerable volatility, ascending from 9.14 in 2020 to a peak exceeding 16.9 around early 2021. A decline followed, with a low near 6.88 in late 2022, indicating a potential correction in the company's market valuation relative to its book value. Subsequent recovery raised the ratio back over 15 by early 2024. Although fluctuations persisted, the ratio stabilized somewhat above 10 in later years, finishing near 18.69. This reflects shifts in investor confidence regarding the company’s asset base and growth prospects.

Share Price

The share price shows a general upward trend over the analyzed period, beginning at $34.38 and reaching a peak of $151.68 in the latest quarter. There are noticeable fluctuations, with periods of decline such as the drop from $58.95 to $45.72 between December 2021 and March 2022, and another dip around September 2022 at $37.40. Following these declines, the share price generally recovered, with significant increases seen especially from December 2023 onwards, indicating strong market confidence or potentially positive developments impacting the company's valuation.

Earnings Per Share (EPS)

EPS follows a generally upward trajectory, rising from $1.81 in September 2020 to $4.63 by September 2025. This growth is mostly steady, with minor short-term declines or stagnation observed around late 2022 and throughout 2023. The increase in EPS suggests consistent improvements in profitability or operational performance, supporting the overall growth story of the company during this period.

Price-to-Earnings (P/E) Ratio

The P/E ratio exhibits moderate variability, with some notable fluctuations. It decreases from an initial 18.97 to a low near 10.51 in September 2022, indicating a period where share prices were lower relative to earnings. Subsequently, the ratio climbs significantly, peaking above 32 in late 2023 and again in mid to late 2025. These higher ratios may reflect heightened investor expectations for future growth or a premium valuation during these times. The P/E's behavior suggests that market sentiment and valuation multiples were influenced by factors beyond current earnings, possibly expectations of strong future performance or industry dynamics.

Summary

Overall, the company's financial indicators depict an improving profitability profile as reflected in the rising EPS. Share prices generally rise in tandem, albeit with periods of volatility, pointing to a dynamic market perception of the company's value. The P/E ratio's fluctuations highlight changing investor sentiment and valuation levels over time, with periods of undervaluation followed by optimistic pricing. The data collectively suggest a positive growth trend with intermittent market adjustments, typical of a company experiencing growth in a competitive or rapidly evolving sector.

Share Price Trend

The share price demonstrates notable volatility over the observed periods. Initially, there is a strong upward trajectory, increasing from $34.38 to a peak around $63.81 within the first few quarters. This is followed by fluctuations, including a decline to levels near $37.40, then a recovery surpassing previous highs, reaching $84.58, and peaking further at $151.68 by the end of the timeline. The latter stages show significant growth, particularly from mid-2024 onward, despite intermittent pullbacks.

Operating Profit per Share (OPPS)

Operating profit per share exhibits steady growth throughout most of the timeline. Starting at $2.15, OPPS increases almost consistently, with minor fluctuations, reaching $5.15 by the end of the data period. There are occasional slight declines, such as around mid-2023, but the overall slope remains positive, reflecting improving operational profitability on a per-share basis.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio shows significant variability, reflecting changes in the share price relative to earnings. Early periods reveal ratios ranging broadly, beginning near 16 and peaking above 23, indicating elevated market expectations relative to operating profit. In mid timelines, the ratio dips to single-digit lows close to 8.94, suggesting potential undervaluation or heightened operating profit growth. Subsequently, it climbs again, reaching levels above 28 and 30, corresponding with sharp increases in share price. Toward the end, the ratio decreases slightly before spiking once more, indicating fluctuating investor sentiment or market valuation dynamics relative to core profitability.

Overall Insights

The period reflects strong improvement in core operating profit per share, an indicator of advancing operational efficiency or revenue growth. The share price movements suggest market responses potentially driven by broader economic factors, company performance, or industry trends, with periods of both significant growth and correction. The variability in the valuation ratio underscores changing market perceptions regarding the company's future earnings potential relative to its current profitability. The relationship between rising operating profit and the oscillating price to operating profit ratio highlights shifts in investor optimism over the observed timeframe.

The financial data reveals several noteworthy trends in key metrics over the reported periods.

Share Price

The share price exhibits considerable volatility throughout the quarters. Starting at $34.38, it increased significantly to peak levels above $60 in early 2021 before experiencing a decline towards the end of the same year. Following this, there was a period of relative stability around the mid-$40 range, then a resurgence is observed beginning in late 2022, culminating in a substantial rise that reaches a high of $151.68 in the most recent quarter. This suggests a recovery phase with strong upward momentum in later periods.

Sales per Share

Sales per share display a generally upward trajectory over the entire timeframe. Beginning at $7.68, sales per share steadily climbed to a peak near $14.57 in mid-2025, with minor fluctuations. A slight dip in sales per share is observed around 2023, but overall the trend is positive, reflecting incremental growth in revenue generated per share on average across quarters.

Price-to-Sales (P/S) Ratio

The P/S ratio shows marked variability and mirrors some of the share price movements, albeit influenced by sales per share changes. Starting from a moderate 4.48, the ratio rose to nearly 6.9 by early 2021, declined to lows near 2.8 in late 2022, and then surged again to reach nearly 9.72 in mid-2025. This pattern indicates that market valuations relative to sales experienced cycles of contraction and expansion, with investor confidence and price appreciation outpacing sales growth in the most recent quarters.

In summary, the company’s share price experienced significant fluctuations but has shown strong recovery and appreciation in the latest periods, supported by consistent sales per share growth. The P/S ratio’s volatility suggests changing market sentiment, with heightened valuations in the most recent quarter implying increased investor expectations or optimism relative to the underlying sales figures.

Share Price Trend

The share price exhibited notable volatility over the observed periods. Starting at $34.38, the price rose significantly to a peak around $63.81, followed by fluctuations with some downturns, such as declines observed around the middle periods near $37.40 and $45.72. In the later periods, the share price increased markedly, reaching highs of $102 and $151.68 near the end of the timeline. This indicates strengthened market confidence or positive developments influencing the valuation in the latter stages.

Book Value Per Share (BVPS) Trend

BVPS showed a steady and gradual upward trend throughout the periods, rising from $3.76 initially to $8.12 in the most recent period. This consistent increase in book value per share reflects ongoing accumulation of equity or retained earnings, suggesting improving underlying fundamentals and a stronger asset base relative to shares outstanding.

Price-to-Book Value Ratio (P/BV) Trend

The P/BV ratio experienced significant fluctuations, starting at 9.14 and peaking at nearly 17 in the early part of the period. Following this high, the ratio decreased to a low near 6.88, indicating a lower market premium relative to the book value. In subsequent periods, the ratio climbed again, reaching as high as 18.69 by the end. This oscillation suggests varying market sentiment, with phases of higher optimism and stronger valuation multiples alternating with periods of more conservative pricing. High P/BV ratios towards the end denote strong market expectations relative to the company's book value.

Relationship Between Share Price and BVPS

While BVPS increased steadily, the share price lacked the same steady trajectory and was more volatile. The substantial rise in share price towards the latest periods, contrasted with the moderate growth in BVPS, resulted in increasing P/BV ratios. This divergence implies that factors other than tangible book value, possibly including growth prospects or market dynamics, are influencing the share price appreciably.

Overall Insights

The data reflects a company with improving equity strength as demonstrated by rising BVPS. Share price movements suggest fluctuating market perceptions, with pronounced volatility but culminating in robust market valuations. The elevated P/BV ratios in recent quarters indicate optimistic investor sentiment that surpasses the actual book value growth, highlighting expectations for future profitability or strategic advantages.