KLA Corporation (KLAC) fair value: what the stock is really worth
As of Oct 23, 2026: fair value (intrinsic value) of KLA Corporation stock $134, price $146, upside -8.0%, quality 59 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Fair value above price?No
Good quality?Yes
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 24, 2026.
How to read this chart
60‑month range $25.37 – $301.37 · fair‑value band $70.26 – $171.60 · the $145.61 price screens above the $133.91 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Oct 24, 2026.
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KLA Corporation, together with its subsidiaries, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide.
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The company operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.
It offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; wafer inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk.
The company also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry.
In addition, it offers direct imaging, inspection, optical shaping, inkjet and additive printing, and computer-aided manufacturing and engineering solutions for the PCB market and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets.
The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.
Stock analysis
KLA Corporation (KLAC) currently trades at $145.61, while our model-based Fair Value estimate is $133.91, so the stock looks roughly fairly valued today (gap 8.7%).
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $87.69 per share, and 0 of the 26 models we run sit above the $145.61 price.
Bear case: the Economic Profit group reads lowest at $22.61, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $70.26 (bear) to $171.60 (bull), the price of $145.61 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Technology sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
KLA Corporation reported revenue of $13.6B in FY2026 versus $9.2B in FY2022, a compound +10.2%/yr. Reported net income was $4.8B in FY2026, compounding +9.8%/yr from FY2022.
Key figures
Market cap $192B Large · P/E ratio 39.8 · P/S ratio 14.2 · EPS (TTM) $3.66 · Dividend yield 0.5% · Net margin 35.6% · Return on equity 87.5% · Return on assets (EBIT) 29.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 94 out of 100 (medium confidence).
What moves the price
The share trades about 52% below its 52-week high and 33% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −38% fair-value upside, at −8%, KLAC screens cheaper than that median.
Fair Value models
Bear$70.26Fair Value $133.91Bull$171.60
Price $145.61 · Upside -8.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($0.8046 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF$32.73$60.66$106.6377
Growth DCF$32.04$56.36$93.9776
EPV$28.58$33.24$37.1874
All 26 models by family
DCF Models
FCF DCF$32.73$60.66$106.6377
Owner Earnings$34.04$62.99$110.6373
5Y Revenue Exit$32.76$61.42$100.9570
5Y EBITDA Exit$47.02$91.51$148.6573
5Y P/E Exit$56.13$110.74$174.9469
10Y Revenue Exit$31.16$57.67$99.4964
10Y EBITDA Exit$41.33$78.77$138.0666
10Y P/E Exit$47.10$92.27$159.3261
Earnings-Based
Graham-Dodd$25.17$126.54$174.6864
Lynch FV$34.28$48.97$63.6761
PEG = 1.0$34.28$48.97$63.6757
EPV$28.58$33.24$37.1874
Dividend Discount
Gordon GGM$6.68$12.59$18.0567
DDM Multi-Stage$6.68$11.22$13.3867
Multiples
P/E Multiple$77.74$103.65$129.5663
P/S Multiple$42.92$57.23$71.5458
P/B Multiple$14.85$19.79$24.7455
EV/EBIT$74.63$100.66$126.6866
EV/EBITDA$59.19$80.06$100.9467
EV/Revenue$32.97$48.58$64.1953
Asset-Based
NCAV (Graham)$0.3900$0.6000$0.750054
Growth DCF
Growth DCF$32.04$56.36$93.9776
Rev-Margin DCF$32.76$60.54$97.3671
Economic Profit
Residual Income$15.29$22.61$50.2270
ROIC Compounder$31.78$40.71$50.8872
Growth Earnings
Growth-Adj P/E$61.38$87.69$114.0067
The fair value above starts from this blend and is adjusted for dilution from new shares.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+11.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.4%
Start year 2021 (pandemic). Over 10 years: +16.4% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−22.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year−22.8%
Dividend (yield on the price)0.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−22.8% vs −2.0%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.36% → 42%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+29.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+19.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +26.2% a year for the price and +16.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: KLA gains from rising demand for process control tools as AI increases chip complexity but faces limits from export controls and spending cycles.
Main risk: Stricter US export controls and licensing requirements could block or delay sales of process control tools to Chinese advanced logic and memory fabs, cutting revenue from a market that has represented 26-33% of total sales in recent periods.
Bull case: KLA could offset China restrictions by accelerating share gains and capacity in Korea, Taiwan and advanced packaging while embedding more AI analytics into its tools to raise switching costs and capture higher process-control intensity per wafer.
Bear case: If export controls tighten further and rivals take meaningful share in packaging inspection, KLA could see sustained revenue pressure from lost China business and slower growth in its highest-margin advanced-node and packaging segments.
KLA's process control tools see rising demand as AI pushes chip designs toward greater complexity and more layers. At the same time export controls and the industry's spending cycles limit how far that demand can run. Does the company gain more from higher inspection intensity than it gives up to those external pressures?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductor Equipment & Materials · 227 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "KLA Corporation Fair Value". https://www.fairvalue-calculator.com/stock/KLAC
Frequently asked questions
Is KLA Corporation (KLAC) overvalued or undervalued?
As of Oct 24, 2026, our model estimates a fair value of $133.91 versus a price of $145.61, about −8% upside (fairly valued).
What is the fair value of KLAC?
Our model-based fair value for KLA Corporation is $133.91 (as of Oct 24, 2026), built from audited fundamentals. The current price: $145.61.
What is the quality score of KLAC?
KLA Corporation has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for KLA Corporation (KLAC)?
Our model-based price target is the fair value of $133.91 (as of Oct 24, 2026) from 26 valuation models. Cautious scenario $70.26, optimistic scenario $171.60. It is a calculation from audited fundamentals, not an analyst target.
What is the KLA Corporation stock forecast for 2026?
Our models put fair value at $133.91, about −8% upside versus a price of $145.61 (fairly valued). Cautious scenario $70.26, optimistic scenario $171.60. The calculation is refreshed regularly with new filings.
What is the revenue of KLA Corporation (KLAC)?
KLA Corporation reported trailing-twelve-month revenue of about $13.6B (latest available figure, as of Oct 24, 2026).
Does KLA Corporation pay a dividend?
KLA Corporation currently shows a dividend yield of 0.55% relative to its recent price (as of Oct 24, 2026).
What growth is priced into KLA Corporation (KLAC)?
For today's price to be fair in a discounted-cash-flow model, KLA Corporation would have to grow free cash flow by +29.2 % per year for five years (discount rate 10.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.4 % per year. As of Oct 24, 2026.
What discount rate (WACC) does the fair value of KLAC use?
Our models discount KLA Corporation at 10.3 %: a base by market capitalisation (large), damped by beta 1.45, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For KLA Corporation that is +29.2 % per year a year over ten years, using the same discount rate (10.3 %) and the same formula as our fair value.
How much growth has KLA Corporation (KLAC) delivered so far?
Over the past 5 years revenue at KLA Corporation grew +14.4 % a year. The price currently implies +29.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of KLA Corporation (KLAC) growing?
The median revenue growth in the sector is +10.8 % a year. That is the yardstick for the growth priced into KLA Corporation (+29.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of KLA Corporation (KLAC)?
The free-cash-flow yield on the price is 1.96 %: that much free cash flow KLA Corporation produces per unit of market value. When it exceeds the discount rate of our models (10.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of KLA Corporation (KLAC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For KLA Corporation it is $133.91 per share (as of Oct 24, 2026), against a price of $145.61. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is KLA Corporation stock overvalued or undervalued in 2026?
As of Oct 24, 2026, KLAC trades above its calculated fair value: price $145.61, fair value $133.91, a gap of about −8% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of KLAC?
No. The price is what the market pays today ($145.61); the fair value is what the company's own numbers justify ($133.91). For KLA Corporation the two are $11.70 per share apart. That gap is exactly why we show both numbers side by side.
How much is KLA Corporation worth?
The market values KLA Corporation at about $192B (market capitalisation, as of Oct 24, 2026). Per share that is $145.61; our models calculate a fair value of $133.91 per share.
What do the bullish and bearish scenarios say about KLAC?
Our models span a range for KLA Corporation: cautious scenario $70.26, base $133.91, optimistic $171.60 per share (as of Oct 24, 2026, price $145.61). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of KLAC?
KLA Corporation trades at a price-to-earnings ratio of 39.8 (as of Oct 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $133.91 is built from several models across several years. Other multiples: PEG 1.8, P/B 30.3, P/S 14.2, EV/EBITDA 32.4.
What is the PEG ratio of KLAC?
The PEG ratio of KLA Corporation is 1.80 (P/E divided by earnings growth, as of Oct 24, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of KLA Corporation (KLAC)?
Balance-sheet figures for KLA Corporation (as of Oct 24, 2026): return on equity 87.5%, debt of 0.93 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is KLAC from its 52-week high?
KLA Corporation trades at $145.61, about 52% below its 52-week high of $301.37 and 33% above the low of $109.31 (as of Oct 23, 2026). Distance from the high says nothing about value: that is what the fair value of $133.91 is for.
Which stocks are comparable to KLA Corporation?
From the same area (Technology) we also value ASML Holding, Lam Research Corporation, Applied Materials, Inc, Teradyne, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is KLA Corporation stock attractive at the current price?
The data as of Oct 24, 2026: price $145.61, calculated fair value $133.91 (−8%), Quality Score 59/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of KLAC calculated?
We run KLA Corporation through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $133.91, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 12.3 % above its aggregate fair value. KLA Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of KLA Corporation (KLAC)?
The closing price on Oct 23, 2026 was $145.61. Our model-based fair value is $133.91, about −8% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with KLA Corporation right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($70.26 to $171.60) leaves room in how you read the outcome.
Where does the earnings growth of KLA Corporation (KLAC) come from?
Earnings per share at KLA Corporation grew +6.4 % a year from 2015 to 2026. Broken into its drivers: revenue per share +1.6 %, EBIT margin +3.0 %, tax rate +0.8 %, residual (interest, one-offs) +0.9 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of KLA Corporation
How large is the market capitalisation of KLA Corporation (KLAC)?
The market capitalisation of KLA Corporation is $192B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of KLA Corporation (KLAC)?
The price-to-sales ratio of KLA Corporation is 14.2 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of KLA Corporation (KLAC)?
Earnings per share at KLA Corporation are $3.66 (price ÷ EPS = P/E 39.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of KLA Corporation (KLAC)?
The dividend yield of KLA Corporation is 0.5% (payout 21.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of KLA Corporation (KLAC)?
The net margin of KLA Corporation is 35.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of KLA Corporation (KLAC)?
The return on equity (ROE) of KLA Corporation is 87.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of KLA Corporation (KLAC)?
On an EBIT basis the return on assets of KLA Corporation is 29.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of KLA Corporation (KLAC)?
The operating margin of KLA Corporation is 42.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at KLA Corporation (KLAC)?
Revenue at KLA Corporation is growing +15.2% versus a year earlier (3y avg +9.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at KLA Corporation (KLAC)?
Earnings per share at KLA Corporation are growing +13.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does KLA Corporation (KLAC) carry?
The net debt of KLA Corporation is $4.5B (fiscal year 2026, ≈ 1.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 24, 2026