KLA Tencor Corporation designs, manufactures, and markets process control and yield management solutions worldwide. The company was founded in 1975 and is based in Milpitas, California.
KLAC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Kla Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Kla Corp ranked in the 43th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Kla Corp ended up being:
As a business, KLAC is generating more cash flow than 86.96% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately merely 21.83% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
KLAC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 40.67% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Kla Corp? See CSCO, FISV, INTC, VMW, and ACN.
(Bloomberg) -- The U.S. and China are moving beyond bellicose trade threats to exchanging regulatory punches that threaten a wide range of industries including technology, energy and air travel.The two countries have blacklisted each other’s companies, barred flights and expelled journalists. The unfolding skirmish is starting to make companies nervous the trading landscape could shift out from under them.“There are many industries where U.S. companies have made long-term bets on China’s future because the market is so promising and so big,” said Myron Brilliant, the U.S. Chamber of Commerce’s head of international affairs. Now, they’re “recognizing the risk.”China will look to avoid measures that could backfire, said Shi Yinhong, an adviser to the nation’s cabinet and a professor of in...
Citing the "too high" valuations, Stifel analyst Patrick Ho downgrades KLA ([[KLAC]] -0.7%) and Lam Research ([[LRCX]] -1.4%) from Buy to Neutral.Ho: "We believe the recent rally in the markets and the group has led to a less attractive valuation that has risen 'too high' and 'too fast'"The analyst thinks memory...
Shares of KLA Corp. are off 1.5% in premarket trading Monday while shares of Lam Research Corp. are down 0.6% after Stifel analyst Patrick Ho downgraded the stocks to neutral from buy. "We believe the recent rally in the markets and the group has led to a less attractive valuation that has risen 'too high' and 'too fast'" Ho wrote. "We believe there is the potential for memory fundamentals to begin weakening in CY-2H20 and this could lead to push outs of certain memory projects out of 2020." He kept a buy rating on shares of Applied Materials Inc. , arguing that the stock still had room for upside and that Applied Materials was among a handful of names that could outperform in the semiconductor-equipment space in part due to more balanced business m...
A day after KLA (KLAC) shares closed at a record high, Evercore downgrades the company from Outperform to In-Line and raises the price target from $180 to $210.Analyst C.J. Muse says that KLA's "fundamental outlook is promising" but shares are trading at a premium to Applied Materials and Lam Research.Muse sees...
MILPITAS, Calif., June 15, 2020 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC) today announced that the KLA Foundation is dedicating $1 million to national and local initiatives which focus on addressing and improving systemic racial inequality. The Foundation will grant $250,000 to the…