KLA Corporation

NasdaqGS:KLAC Stock Report

Market Cap: US$82.4b

KLA Valuation

Is KLAC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of KLAC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KLAC ($616.83) is trading below our estimate of fair value ($632.37)

Significantly Below Fair Value: KLAC is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KLAC?

Key metric: As KLAC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KLAC. This is calculated by dividing KLAC's market cap by their current earnings.
What is KLAC's PE Ratio?
PE Ratio27.8x
EarningsUS$2.97b
Market CapUS$82.35b

Price to Earnings Ratio vs Peers

How does KLAC's PE Ratio compare to its peers?

The above table shows the PE ratio for KLAC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.2x
LRCX Lam Research
22.2x12.3%US$90.3b
AMAT Applied Materials
19.6x7.8%US$139.6b
ENTG Entegris
66x50.4%US$15.0b
TER Teradyne
32.9x21.7%US$16.7b
KLAC KLA
27.8x13.6%US$82.4b

Price-To-Earnings vs Peers: KLAC is good value based on its Price-To-Earnings Ratio (27.8x) compared to the peer average (35.2x).

Price to Earnings Ratio vs Industry

How does KLAC's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.5xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
KLAC 27.8xIndustry Avg. 30.3xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KLAC is good value based on its Price-To-Earnings Ratio (27.8x) compared to the US Semiconductor industry average (30.3x).

Price to Earnings Ratio vs Fair Ratio

What is KLAC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KLAC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.8x
Fair PE Ratio30.8x

Price-To-Earnings vs Fair Ratio: KLAC is good value based on its Price-To-Earnings Ratio (27.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst KLAC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$616.83
US$809.10
+31.2%
9.9%US$950.00US$670.00n/a27
Nov ’25US$669.38
US$810.60
+21.1%
9.6%US$950.00US$670.00n/a27
Oct ’25US$753.69
US$839.73
+11.4%
10.7%US$975.00US$670.00n/a25
Sep ’25US$819.43
US$861.31
+5.1%
10.1%US$980.00US$670.00n/a24
Aug ’25US$756.14
US$862.56
+14.1%
10.3%US$990.00US$670.00n/a24
Jul ’25US$827.79
US$776.19
-6.2%
10.3%US$950.00US$530.00n/a24
Jun ’25US$759.53
US$751.15
-1.1%
10.4%US$850.00US$530.00n/a23
May ’25US$666.04
US$729.69
+9.6%
12.0%US$850.00US$530.00n/a24
Apr ’25US$710.88
US$663.24
-6.7%
11.9%US$850.00US$510.00n/a24
Mar ’25US$717.57
US$654.70
-8.8%
11.0%US$800.00US$510.00n/a24
Feb ’25US$599.10
US$644.74
+7.6%
11.2%US$750.00US$510.00n/a23
Jan ’25US$581.30
US$561.26
-3.4%
10.6%US$730.00US$425.00n/a23
Dec ’24US$549.00
US$541.55
-1.4%
7.2%US$600.00US$425.00n/a22
Nov ’24US$476.53
US$542.43
+13.8%
7.3%US$600.00US$425.00US$669.3821
Oct ’24US$458.66
US$532.00
+16.0%
9.5%US$600.00US$410.00US$753.6920
Sep ’24US$507.02
US$528.95
+4.3%
9.3%US$600.00US$410.00US$819.4319
Aug ’24US$514.28
US$527.05
+2.5%
9.4%US$600.00US$410.00US$756.1419
Jul ’24US$485.02
US$455.05
-6.2%
8.1%US$560.00US$400.00US$827.7920
Jun ’24US$452.53
US$442.67
-2.2%
8.4%US$495.00US$325.00US$759.5321
May ’24US$384.43
US$433.43
+12.7%
9.3%US$495.00US$325.00US$666.0421
Apr ’24US$399.17
US$437.19
+9.5%
10.2%US$505.00US$325.00US$710.8821
Mar ’24US$378.34
US$437.19
+15.6%
10.2%US$505.00US$325.00US$717.5721
Feb ’24US$409.77
US$425.54
+3.8%
12.1%US$505.00US$310.00US$599.1022
Jan ’24US$377.03
US$379.42
+0.6%
13.1%US$480.00US$260.00US$581.3021
Dec ’23US$390.73
US$369.18
-5.5%
11.7%US$440.00US$260.00US$549.0021
Nov ’23US$321.18
US$366.80
+14.2%
11.2%US$440.00US$260.00US$476.5321

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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