KLAC PE Ratio & Valuation,Is KLAC Overvalued

KLAC Relative Valuation

KLAC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KLAC is overvalued; if below, it's undervalued.

Historical Valuation

KLA Corp (KLAC) is now in the Overvalued zone, suggesting that its current forward PE ratio of 32.24 is considered Overvalued compared with the five-year average of 21.16. The fair price of KLA Corp (KLAC) is between 873.32 to 1166.36 according to relative valuation methord. Compared to the current price of 1225.11 USD , KLA Corp is Overvalued By 5.04%.

Relative Value

Fair Zone

873.32-1166.36

Current Price：1225.11

5.04%

Overvalued

32.24

26.11

EV/EBITDA

KLA Corp. (KLAC) has a current EV/EBITDA of 26.11. The 5-year average EV/EBITDA is 16.80. The thresholds are as follows: Strongly Undervalued below 9.09, Undervalued between 9.09 and 12.94, Fairly Valued between 20.65 and 12.94, Overvalued between 20.65 and 24.50, and Strongly Overvalued above 24.50. The current Forward EV/EBITDA of 26.11 falls within the Strongly Overvalued range.

27.53

EV/EBIT

KLA Corp. (KLAC) has a current EV/EBIT of 27.53. The 5-year average EV/EBIT is 18.14. The thresholds are as follows: Strongly Undervalued below 9.96, Undervalued between 9.96 and 14.05, Fairly Valued between 22.24 and 14.05, Overvalued between 22.24 and 26.33, and Strongly Overvalued above 26.33. The current Forward EV/EBIT of 27.53 falls within the Strongly Overvalued range.

11.67

KLA Corp. (KLAC) has a current PS of 11.67. The 5-year average PS is 7.13. The thresholds are as follows: Strongly Undervalued below 3.61, Undervalued between 3.61 and 5.37, Fairly Valued between 8.89 and 5.37, Overvalued between 8.89 and 10.65, and Strongly Overvalued above 10.65. The current Forward PS of 11.67 falls within the Strongly Overvalued range.

31.74

P/OCF

KLA Corp. (KLAC) has a current P/OCF of 31.74. The 5-year average P/OCF is 20.13. The thresholds are as follows: Strongly Undervalued below 11.27, Undervalued between 11.27 and 15.70, Fairly Valued between 24.56 and 15.70, Overvalued between 24.56 and 28.99, and Strongly Overvalued above 28.99. The current Forward P/OCF of 31.74 falls within the Strongly Overvalued range.

34.63

P/FCF

KLA Corp. (KLAC) has a current P/FCF of 34.63. The 5-year average P/FCF is 22.63. The thresholds are as follows: Strongly Undervalued below 12.20, Undervalued between 12.20 and 17.41, Fairly Valued between 27.85 and 17.41, Overvalued between 27.85 and 33.07, and Strongly Overvalued above 33.07. The current Forward P/FCF of 34.63 falls within the Strongly Overvalued range.

KLA Corp (KLAC) has a current Price-to-Book (P/B) ratio of 31.51. Compared to its 3-year average P/B ratio of 26.24 , the current P/B ratio is approximately 20.10% higher. Relative to its 5-year average P/B ratio of 22.97, the current P/B ratio is about 37.21% higher. KLA Corp (KLAC) has a Forward Free Cash Flow (FCF) yield of approximately 2.47%. Compared to its 3-year average FCF yield of 3.92%, the current FCF yield is approximately -36.99% lower. Relative to its 5-year average FCF yield of 4.24% , the current FCF yield is about -41.77% lower.

31.51

P/B

Median3y

26.24

Median5y

22.97

2.47

FCF Yield

Median3y

3.92

Median5y

4.24

Competitors Valuation Multiple

The average P/S ratio for KLAC's competitors is 10.74, providing a benchmark for relative valuation. KLA Corp Corp (KLAC) exhibits a P/S ratio of 11.67, which is 8.61% above the industry average. Given its robust revenue growth of 12.96%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of KLAC increased by 89.48% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 21.87 to 37.53.

The secondary factor is the Revenue Growth, contributed 12.96%to the performance.

Overall, the performance of KLAC in the past 1 year is driven by P/E Change. Which is more unsustainable.

12.96%

2.84B → 3.21B

Revenue Growth

4.93%

33.29 → 34.93

Margin Expansion

71.59%

21.87 → 37.53

P/E Change

89.48%

630.12 → 1.19K

Mkt Cap Growth

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Frequently Asked Questions

Is KLA Corp (KLAC) currently overvalued or undervalued?

What is KLA Corp (KLAC) fair value?

KLAC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of KLA Corp (KLAC) is between 873.32 to 1166.36 according to relative valuation methord.

How does KLAC's valuation metrics compare to the industry average?

What is the current P/B ratio for KLA Corp (KLAC) as of Dec 15 2025?

As of Dec 15 2025, KLA Corp (KLAC) has a P/B ratio of 31.51. This indicates that the market values KLAC at 31.51 times its book value.

What is the current FCF Yield for KLA Corp (KLAC) as of Dec 15 2025?

As of Dec 15 2025, KLA Corp (KLAC) has a FCF Yield of 2.47%. This means that for every dollar of KLA Corp’s market capitalization, the company generates 2.47 cents in free cash flow.

What is the current Forward P/E ratio for KLA Corp (KLAC) as of Dec 15 2025?

As of Dec 15 2025, KLA Corp (KLAC) has a Forward P/E ratio of 32.24. This means the market is willing to pay $32.24 for every dollar of KLA Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for KLA Corp (KLAC) as of Dec 15 2025?

As of Dec 15 2025, KLA Corp (KLAC) has a Forward P/S ratio of 11.67. This means the market is valuing KLAC at $11.67 for every dollar of expected revenue over the next 12 months.

KLAC Valuation