We publish no single base value for KLA Corporation. Our valuation methods put it between $82.78 and $145.22 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $82.78 | -47.4% | free cash flow $4.04bn, growth 15.82% for 5 years, then fading to 3% over 5 more, discounted at 10.93%; stress floor $41.70 |
| Exit multiple (P/E) | $145.22 | -7.7% | earnings per share $5.77 valued at 26.2× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | $84.83 | -46.1% | Semiconductor Process Control at 20×; PCB and Component Inspection at 14×; Specialty Semiconductor Process at 20× |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 1.48 (5 years of monthly returns against the S&P 500; standard error 0.34) |
| Peer beta | 1.32 (median of 73 S&P 500 Information Technology companies) |
| Blend of own and peers | 1.43 (69% own, 31% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 1.29 (0.67 × 1.43 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 10.93% |
Free cash flow grows 15.82% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $4.04bn | — | — |
| Year 1 | 15.82% | $4.68bn | 0.9014 | $4.22bn |
| Year 2 | 15.82% | $5.42bn | 0.8126 | $4.40bn |
| Year 3 | 15.82% | $6.27bn | 0.7325 | $4.59bn |
| Year 4 | 15.82% | $7.27bn | 0.6603 | $4.80bn |
| Year 5 | 15.82% | $8.41bn | 0.5952 | $5.01bn |
| Year 6 | 13.68% | $9.57bn | 0.5365 | $5.13bn |
| Year 7 | 11.55% | $10.67bn | 0.4836 | $5.16bn |
| Year 8 | 9.41% | $11.67bn | 0.4360 | $5.09bn |
| Year 9 | 7.27% | $12.52bn | 0.3930 | $4.92bn |
| Year 10 | 5.14% | $13.17bn | 0.3543 | $4.66bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (10.93% − 3%) | $170.92bn |
| Terminal value in today's money | $60.55bn |
| Present value of years 1–10 | $47.99bn |
| Total present value | $108.54bn |
| Shares outstanding | 1.31bn |
| Value per share = total ÷ shares | $82.78 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 10.82% | Growth 15.82% | Growth 20.82% |
|---|---|---|---|
| 9.93% | — | $96.37 | $127.92 |
| 10.93% | — | $82.78 | $109.30 |
| 11.93% | — | $72.31 | $94.98 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 1.48 | 11.79% | $73.67 |
| Peer beta | 1.32 | 11.07% | $81.21 |
| Adjusted beta (used) | 1.29 | 10.93% | $82.78 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $5.77 |
| Year 1 | 15.82% | $6.68 |
| Year 2 | 11.97% | $7.48 |
| Year 3 | 9.28% | $8.17 |
| Year 4 | 7.40% | $8.78 |
| Year 5 | 6.08% | $9.31 |
| Earnings per share in year 5 | $9.31 |
| Exit P/E (the stock's own median P/E) | 26.2× |
| Value in 5 years = earnings × P/E | $243.99 |
| Discounted at 10.93% over 5 years: ÷ 1.6801 | $145.22 |
We publish no single base value for KLA Corporation. Our valuation methods put it between $82.78 and $145.22 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $65.69 and a 10% chance it is above $318.65 in a year; a 45% chance it is higher than today's $157.30, from 61.3% volatility. The simulation assumes the price drifts up at our discount rate of 10.93% a year.
At $157.30 the price implies free cash flow growing 27.5% a year for five years and then fading toward 3% over five more; its revenue has grown 15.8%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $206.89 | $94.10 |
| 9 Oct 2026 | $195.57 | $93.97 |
| 16 Oct 2026 | $165.74 | $96.22 |
| 23 Oct 2026 | $145.61 | $97.94 |
| 30 Oct 2026 | $157.91 | — |
| 6 Nov 2026 | $138.49 | — |
| 12 Nov 2026 | $157.30 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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