KLA Corporation, together with its subsidiaries, provides process control and process-enabling solutions for manufacturing wafers, reticles/masks, chemicals/materials, integrated circuits (ICs), packaged ICs, and printed circuit boards. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (24 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $189.82 Implied EV: $249.25B |
What growth rate is the market pricing in at $167?
The market implies +18.9% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +22.3%, reflecting heavy growth investment.
Wide moat driven primarily by roic consistency. Revenue Predictability is the area most vulnerable to competitive pressure.
"Market is pessimistic — investigate whether fears are temporary or structural"
Near fair value but market is fearful — conditions may present an opportunity if fear is temporary
