KLAC · Intrinsic value
Is KLA Corporation (KLAC) overvalued or undervalued?
As of Oct 19, 2026, TickerWorth publishes a fair-value range of $13.63 – $117.46 for KLA Corporation (KLAC), against the delayed market price of $171.67: priced above our range. It is a range, not a single number, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
What is KLAC worth?
- Fair-value range
- $13.63 – $117.46
- Market price
- $171.67
- Gap to fair value
- —
- Verdict
- Priced above our range
Reverse DCF: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is KLAC's TickerWorth Score?
Expensive vs our estimate — the business scores well
Compared with Technology companies in US
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 23 of 100
Cheaper than 23% of Technology companies in US
- Price vs worth · 0 of 100
- Quality · 84 of 100
More profitable than 84% of Technology companies in US
- Financial health · 51 of 100
Financially stronger than 51% of Technology companies in US
- Growth · 39 of 100
Growing faster than 39% of Technology companies in US
- Momentum · 50 of 100
Outperformed 50% of Technology companies in US over the past year
Confidence: Medium confidence · Scored
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Why KLAC gets a range, not one number
At a recent price of $171.67, KLA Corporation (KLAC) sits above every lens we ran: our valuation lenses put the business somewhere between $13.63 and $117.46 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts KLA Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 11.8%, with a long-run terminal growth rate of 2.5%. About 75% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — KLAC would need sustained revenue growth of more than 25%/yr to justify today's price, against about 9.2% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, KLAC's modeled DCF value ranges from about $10.04 to $19.84 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what KLA Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of KLAC's intrinsic value. Figures update as new filings and prices come in.
Every input behind KLAC's DCF
| Input | Value |
|---|---|
| Base-year revenueKLA Corporation FY2026 10-K (accession 0000319201-26-000027): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2026 full year. | $13,579,480,000 |
| Base EBIT marginKLA Corporation FY2014 10-K (accession 0000319201-14-000038): us-gaap:OperatingIncomeLoss 772,070,000 / revenue 13,579,476,000 = 5.69%, FY2026. | 5.7% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 15% → 12% → 9% → 7% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.44 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesKLA Corporation FY2026 10-K (accession 0000319201-26-000027): WeightedAverageNumberOfDilutedSharesOutstanding = 1,319,633,000 shares, FY2026. | 1,320M |
| Market priceLast known price · as of 2026-10-19 22:18 UTC | $171.67 |
Change KLAC's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does KLA Corporation do?
What does it do?
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. It operates in the Semiconductor Equipment & Materials industry (Technology sector), headquartered in United States. The company employs roughly 17,000 people.
How does it make money?
The business turns $13.6B in annual revenue into profit. Out of every $100 of sales, about $42 is left as operating profit (operating margin of 42.5%), after a 61% gross margin on the products/services it sells. After all costs, taxes and interest, 35.6% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (1.0× equity), comfortably covers its short-term bills (2.9× current ratio), and is currently profitable.
Who at KLAC filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| WALLACE RICHARD P | President and CEO | Open-market sale | $12,378,625.72 | Form 4 for WALLACE RICHARD P (opens sec.gov in a new tab) | |
| Lorig Brian | EVP, KLA Global Services | Open-market sale | $12,401,634.18 | Form 4 for Lorig Brian (opens sec.gov in a new tab) | |
| Higgins Bren D. | EVP & Chief Financial Officer | Open-market sale | $6,610,905.00 | Form 4 for Higgins Bren D. (opens sec.gov in a new tab) | |
| Khan Ahmad A. | President, Semi. Prod. & Cust. | Open-market sale | $6,601,161.00 | Form 4 for Khan Ahmad A. (opens sec.gov in a new tab) | |
| WALLACE RICHARD P | President and CEO | Open-market sale | $17,421,653.60 | Form 4 for WALLACE RICHARD P (opens sec.gov in a new tab) | |
| Kirloskar Virendra A | SVP & Chief Accounting Officer | Open-market sale | $108,212.24 | Form 4 for Kirloskar Virendra A (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is KLAC's intrinsic value?
TickerWorth's valuation lenses put KLA Corporation (KLAC) between $13.63 and $117.46 per share, versus a market price of $171.67. They disagree too widely for us to state a single fair value, so we publish the range.
Is KLAC overvalued or undervalued?
At $171.67 the price sits above every lens we ran. We don't call KLAC overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for KLAC?
A WACC of 11.8% and a terminal growth rate of 2.5%.
Is KLA stock undervalued?
TickerWorth's fair-value range for KLA Corporation (KLAC) is $13.63 – $117.46 against a market price of $171.67. Priced above our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
KLA (KLAC) DCF valuation and fair value
Our fair-value range for KLA Corporation (KLAC) is $13.63 – $117.46, built on a 11.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into KLA stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $171.67. A model estimate, not investment advice.
KLA (KLAC) insider trading
The most recent insider filing (SEC Form 4) for KLA Corporation (KLAC): WALLACE RICHARD P, President and CEO, open-market sale on 2026-09-15. The latest filings are listed on this page. A disclosure, not a signal to trade.
Other ways into the coverage
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.