What is KLA Corporation (KLAC) DCF Fair Value and Intrinsic Value in 2026?

KLA Corporation (KLAC) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is KLA Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

KLA Corporation operates in the Technology sector (Semiconductor Equipment) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is KLA Corporation's financial health rating and Piotroski F-Score?

KLA Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor KLA Corporation (KLAC) for quarterly SEC filing thesis breaks?

LocalAlpha audits KLA Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksKLAC

KLAC

KLA CorporationTechnology / Semiconductor Equipment & MaterialsINTACT

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. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned 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; semiconductor software solutions; KLA Pro systems; and specialty semiconductor manufacturing, benchtop metrology, surface characterization, material strength characterization, and electrical property measurement products. It also provides etch, plasma dicing, deposition and other wafer processing technologies and solutions; direct imaging, inspection, optical shaping, inkjet, and additive printing, as well as computer-aided manufacturing and engineering solutions; and components. In addition, the company offers service programs. It serves semiconductor, and semiconductor-related and electronic device manufacturers. The company operates in China, Taiwan, Korea, North America, Japan, Europe, Israel, and rest of Asia. 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.

Share Price

$181.16

52W: $95.5 - $307.37

DCF Fair Value

$63.21

-186.6% Premium

Thesis Hub

P/E (TTM)

49.4x

ROIC

31.9%

Operating Margin

42.5%

FCF Yield

1.1%

Debt / Equity

0.97x

Piotroski Score

7/9

Altman Z-Score

2.9

Market Cap

$236.7B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($63.21)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$63.21

MOS Buy Target (-25%)

$47.41

Valuation Overlays: DCF Fair Value ($63.21) 25% MOS Buy Target ($47.41) Revised Graham ($129.52) Graham Number ($20.03)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$181.16

DCF Fair Value

$63.15

-186.9% Premium

Starting Free Cash Flow ($M)$2,625M

$100M$2,625M (Reported)$50,000M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$1,300M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$34.0B

PV of Terminal Value

$49.9B

Implied Enterprise Value

$83.8B

Implied Equity Value

$82.5B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$3,098	$3,655	$4,313	$5,089	$6,005	$6,276	$6,558	$6,853	$7,162	$7,484
Present Value (PV)	$2,842	$3,076	$3,330	$3,605	$3,903	$3,742	$3,587	$3,439	$3,297	$3,161

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-804.4% Premium

$20.03

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.67BVPS: $4.86

Revised Graham Formula-39.9% Premium

$129.52

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings1.1% Yield

$1.91 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.5BYield: 1.1%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER

25.8% CAGR (Next 10 Yrs)

At the current price of $181.16, the market is assuming the business will compound Free Cash Flow at 25.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil KLAC with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for KLA Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 42.5% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: KLA Corporation (KLAC) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for KLA Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, KLA Corporation has an estimated DCF intrinsic fair value of $63.21 per share compared to its current market price of $181.16. This represents an estimated 186.6% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $20.03.