Generate enterprise value for Lam Research (ticker: LRCX) using the following benchmarks:

KLAC, AMAT, XLNX.

1. Summarize benchmark multiples and use these to value firm. Produce a main estimate along
with a high and low value. Justify.
2. Examine financial data for firms and evaluate whether the benchmarks are appropriate.
Identify any weaknesses in the report (e.g.the effect of temporary market conditions)

Writing style requirements: formal, edited, addressed to supervisor in organization. The report
should have an introduction, narrative with analysis, and conclusion.

Here are the EV/EBITDA multiples for the past year, 2021, and 2022

LRCX KLAC AMAT XLNX

EV / EBITDA Current 21.9794105 20.03262287 22.28935348 33.06410168
EV / EBITDA 2021E 19.74761732 16.94529237 17.23790761 29.55598525
EV / EBITDA 2022E 16.76994053 14.74677195 15.68244747 29.39344088

LRCX KLAC AMAT XLNX

enterprise value = $94,867,553,584 $50,920,603,560 $126,871,000,000 $32,068,244,000
+ equity value $92,723,872,584 $48,830,506,560 $127,473,000,000 $32,003,623,000
+ total debt $5,817,047,000 $3,544,239,000 $5,703,000,000 $1,503,149,000
+ preferred stock $0 $0 $0 $0
+ non-controlling interest $0 -$1,992,000 $0 $0
- cash $3,673,366,000 $1,452,150,000 $6,305,000,000 $1,438,528,000

LRCX
Implied Valuation
Range
Last twelve months Ending 3/31/21 through 2022
Multiple Range Enterprise Value
Period EBITDA Low Avg High Low Average High
LTM $4,316,201,000 20.0 25.1 33.1 $86,464,826,879 $108,460,488,460 $142,711,308,729
2021E $4,804,000,000 16.9 21.2 29.6 $81,405,184,527 $102,067,681,945 $141,986,953,158
2022E $5,657,000,000 14.7 19.9 29.4 $83,422,488,948 $112,805,596,440 $166,278,695,058