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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Kla Corp. To summarize, we found that Kla Corp ranked in the 48th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 20%. The most interesting components of our discounted cash flow analysis for Kla Corp ended up being:
The company has produced more trailing twelve month cash flow than 87.69% of its sector Technology.
The business' balance sheet suggests that 11% of the company's capital is sourced from debt; this is greater than just 23.68% of the free cash flow producing stocks we're observing.
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 35.61% 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 OSTK, CACI, MEI, PRGS, and SWI.
KLA Corporation (KLAC) (formally known as KLA-Tencor) is an important part of the global semiconductor manufacturing market. The company provides process control and yield management solutions for semiconductor manufacturers. KLA's offerings include inspection, metrology, computational lithography, situ process monitoring, data analytics, and related services. There are multiple growing technologies that...
David Zanoni on Seeking Alpha | September 16, 2020
Chip equipment makers led tech stocks lower Tuesday following reports that U.S. sanctions could spread to businesses like Semiconductor Manufacturing International Corp., China's largest chip fabricator.
The Nasdaq tumbled on Tuesday as a sell-off in high-flying technology stocks extended to a third straight day, while Tesla tracked its worst day in nearly six months after investors were caught off guard by the stock being left out of the S&P 500. All eleven major S&P sectors were down, with declines worsening after news on Friday that SoftBank made significant option purchases during the run-up in U.S. stocks.
Shares of prominent chip names are sliding in Tuesday's session amid broader weakness for the tech sector. Chip-equipment stocks Applied Materials Inc. , KLA Corp. , and Lam Research Corp. are each off more than 6% in Tuesday morning trading amid reports that the U.S. is considering putting export restrictions on Chinese chipmaker Semiconductor Manufacturing International Corp. "Investor concern is that Washington DC does not stop with SMIC and that other domestic China semiconductor manufacturers are at risk," Evercore ISI analyst C.J. Muse wrote, though he said that "a lot of bad news is already priced in." Shares of Nvidia Corp. and Advanced Micro Devices Inc. are also off in the session. AMD finished with a market capitalization below $100 billion in Frida...