Applied Materials and Other Chip Equipment Stocks Are Down—but Maybe Not Out
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Fiscal Year: July - June
KLA Corporation (KLAC), listed on the NASDAQ, has a market capitalization of $222.99B. As of Oct 19, 2026, the stock is trading at $170.87 per share@else an unavailable price , offering investors a clear view of its current market value. KLA Corporation is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 45.28, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. KLA Corporation also offers a dividend yield of 0.54%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that KLA Corporation (KLAC) has a DCF fair value that is only shown to premium members. To see it, please Login or Upgrade for access.
The proprietary SS Score for KLA Corporation is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for KLA Corporation, Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for KLA Corporation is 57.42, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, KLA Corporation (KLAC) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether KLA Corporation (KLAC) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. It is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of KLA Corporation (KLAC) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of KLA Corporation. To access the full SS Score, consider upgrading your subscription.
KLA Corporation is a significant player in the industry sector, with a market capitalization of $222.99B and a competitive P/E ratio of 45.28. Investors should compare these metrics with industry peers to gauge whether KLA Corporation is outperforming or underperforming within its sector.
Shares of chip-equipment makers headed for historic losing streaks on Friday, dragged down by concerns about the hot pace of artificial-intelligence spending.
Morgan Stanley lowered the firm’s price target on KLA Corp. (KLAC) to $227 from $253 and keeps an Overweight rating on the shares. A “lot has gone against KLA in…
Applied Materials and two more semiconductor sector stocks are good bets for earnings season, according to Goldman Sachs.
Some investors are buying the dip in the latest tech selloff. Kevin Green discusses how commentary from Anthropic's Dario Amoedi and OpenAI CEO Sam Altman ignited fears of AI development and ways he s...
UBS lowered the firm’s price target on KLA Corp. (KLAC) to $200 from $215 and keeps a Neutral rating on the shares.
CNBC's Jim Cramer said earnings season reinforced five investing themes he thinks will produce the market's best buying opportunities. He highlighted stocks to buy for each theme, including Capital On...
MILPITAS, Calif., Aug. 6, 2026 /PRNewswire/ -- The KLA Corporation (NASDAQ: KLAC) Board of Directors today declared a quarterly cash dividend of $0.23 per share on its common stock, payable on Sept.
Key Advisors Wealth Management co-founder and CEO Eddie Ghabour discusses the surge in semiconductor stocks, including NVIDIA, and Microsoft's strong cloud-driven earnings outlook on ‘The Claman Count...
Susquehanna analyst Mehdi Hosseini believes the company's growth is constrained even as KLA issues an upbeat forecast.
RBC Capital raised the firm’s price target on KLA Corp. (KLAC) to $180 from $170 and keeps a Sector Perform rating on the shares. The company’s results and outlook were…
BofA analyst Vivek Arya lowered the firm’s price target on KLA Corp. (KLAC) to $260 from $317 and keeps a Buy rating on the shares. Following the June quarter report,…
SK Hynix (SKHY) shares slid to the downside even after the South Korean AI memory giant posted strong earnings. The selling action was even steeper in KLA Corp. (KLAC) even though that company showed ...
UBS analyst Timothy Arcuri lowered the firm’s price target on KLA Corp. (KLAC) to $215 from $240 and keeps a Neutral rating on the shares. The firm found market and…
Susquehanna lowered the firm’s price target on KLA Corp. (KLAC) to $215 from $275 and keeps a Neutral rating on the shares. The firm said results largely reinforce their existing…
Morgan Stanley analyst Shane Brett lowered the firm’s price target on KLA Corp. (KLAC) to $253 from $274 and keeps an Overweight rating on the shares. Similar to last quarter,…
Stifel lowered the firm’s price target on KLA Corp. (KLAC) to $250 from $270 and keeps a Buy rating on the shares.
JPMorgan analyst Harlan Sur raised the firm’s price target on KLA Corp. (KLAC) to $238 from $200 and keeps an Overweight rating on the shares. The company reported a “strong…
Projected from reported cash flow (SEC filings). The starting point is the latest yearly revenue times the median free cash flow margin of the last five years. Years 1 to 5 grow at the revenue growth rate of the last five years (between -5% and 15%), and years 6 to 10 slow down to the 2.5% perpetual growth rate. These are Studying Stocks' own estimates, not analyst forecasts, and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | Source |
|---|---|---|---|
| 2027 | 4.80B | 14.44% | Projected |
| 2028 | 5.49B | 14.44% | Projected |
| 2029 | 6.29B | 14.44% | Projected |
| 2030 | 7.19B | 14.44% | Projected |
| 2031 | 8.23B | 14.44% | Projected |
| 2032 | 9.23B | 12.05% | Projected |
| 2033 | 10.12B | 9.66% | Projected |
| 2034 | 10.85B | 7.28% | Projected |
| 2035 | 11.38B | 4.89% | Projected |
| 2036 | 11.67B | 2.50% | Projected |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2025A | 3.75B | 1.00 | 3.75B |
| 2026A | 3.77B | 1.00 | 3.77B |
| 2027E | 4.80B | 1.10 | Login |
| 2028E | 5.49B | 1.20 | Login |
| 2029E | 6.29B | 1.32 | Login |
| 2030E | 7.19B | 1.45 | Login |
| 2031E | 8.23B | 1.59 | Login |
| 2032E | 9.23B | 1.74 | Login |
| 2033E | 10.12B | 1.91 | Login |
| 2034E | 10.85B | 2.09 | Login |
| 2035E | 11.38B | 2.29 | Login |
| 2036E | 11.67B | 2.51 | Login |
| Terminal | 2.51 | Login |
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