Lam Research’s estimated fair value is US$70.98 based on 2 Stage Free Cash Flow to Equity Current share price of US$82.75 suggests Lam Research is potentially trading close to its fair value The US$91.16 analyst price target for LRCX is 28% more than our estimate of fair value Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of Lam Research Corporation (NASDAQ:LRCX) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. It…
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Image source: Getty Images An investor with £20k and a long-term approach can turn a Stocks and Shares ISA into a serious passive income stream. In fact, in the example below, that £20k ISA could grow in value while also throwing off over £600 each month in dividends – while being invested in proven blue-chip FTSE 100 shares. Investing long term is an income force multiplier I mentioned a long-term approach and in my example here, I am using a 25-year timeframe. The same approach could still turn an ISA into a passive income generator on a much shorter timeframe,…
U.S. President Donald Trump speaks, as he signs an executive order in the Oval Office, at the White House in Washington, D.C., U.S. Feb. 14, 2025. Nathan Howard | ReutersU.S. President Donald Trump’s hopes of securing access to Ukraine’s rare earth minerals hit a wall Saturday after President Volodymyr Zelenskyy rejected the bid on the grounds that it was too focused on U.S. interests.Prospects of an economic pact in exchange for Washington’s support for the war-torn country have gained traction over recent days amid talk of a wider deal to end the war, but Zelenskyy said the offer tabled thus far…
Image source: Getty Images Investing in dividend stocks remains a popular way to earn passive income in the UK, particularly due to the high yields commonly found on the FTSE 100 and FTSE 250. Consistent monthly contributions to a portfolio of these dividend stocks can lead to exponential growth through compounding returns. For example, putting £5,000 per year into the stock market could snowball over time to become a dividend-paying powerhouse. Especially if investors adopt a dividend reinvestment plan (DRIP); that is, putting dividends back into the pot to maximise growth. After 10 years, it won’t just add up to…
Image source: Getty Images Year after year, people dream of getting into the stock market without actually doing anything about it. It does not take much money to start investing – but it does take some action! Here is how a new investor could start investing with less than £300. Step 1: getting a dealing account ready to use As a first step, I think it would make sense to have a way to buy shares. That may seem like putting the cart before the horse… why set up an account before even finding shares to buy? The answer is…
A Self-Invested Personal Pension (SIPP) can be something that matures over decades, making it ideal for the long-term approach to investing. Some investors see that as an opportunity for dividends to pile up. Others think that a long timeframe can provide the perfect opportunity for small but promising companies to burst forth and show their true potential. So when deciding what to do with a SIPP, ought an investor to consider growth shares, income shares or both? Are growth shares different to income shares? It helps recognise that a lot of shares in fact offer both growth and income opportunities.…
The following is adapted from the “Women and Finance: The 2022 Rich Thinking Quantitative Survey Findings” report by Barbara Stewart, CFA, and Duncan Stewart CFA. Given all the changes in investing behavior I was seeing as I conducted my interviews over the past couple of years, I wanted to ask six questions and measure how women’s behavior was changing since the COVID-19 pandemic went global in March 2020. How many women were investing in assets aside from their own homes?How many were investing using online platforms?How many were talking to their friends, family, or colleagues about investing?How many were interacting…
(Bloomberg) — Wall Street’s capacity to process drama got another workout in a week of rapid-fire headlines on tariffs, inflation and the Federal Reserve. Traders proved equal to the task, once again. Most Read from Bloomberg From bonds to credit and equities, a standard pattern is emerging in a world beset with uncertainty. Jarring day-to-day swings set an emotional tone for investors — only to dissipate as the sessions wear on. Take government bonds. After falling more than 1% after Wednesday’s discouraging inflation report, a popular long-dated Treasury ETF was close to erasing losses for the week, with soft retail…
Pan Gongsheng, governor of the People’s Bank of China (PBOC), during the Asian Financial Forum in Hong Kong, China, on Monday, Jan. 13, 2025. Lam Yik | Bloomberg | Getty ImagesChina’s central bank governor said on Sunday a stable yuan currency has been key to global financial and economic stability and Beijing will continue to let the market play a decisive role in deciding the exchange rate.People’s Bank of China Governor Pan Gongsheng told a conference in Saudi Arabia that while most currencies have fallen against the dollar, the yuan has remained stable.”Recently, a number of factors have pushed up (the)…
Image source: Getty Images When Barclays (LSE:BARC) issued its Q4 trading update earlier this week, its share price fell 5%. But I think the bank’s future plans could make it interesting for passive income investors. Overall, I thought the report was pretty strong. But the thing that really caught my eye was its proposed approach to capital returns over the next couple of years. Capital returns Barclays is in the process of returning £10bn to investors between the start of 2024 and the end of 2026. It completed around 30% of this in 2024, leaving a further £7bn or so…