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 52th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 38.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for KLAC, they are:
As a business, KLAC is generating more cash flow than 87.36% 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 just 22.63% 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 36.5% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KLAC, try PLXS, CACI, CAMT, OTEX, and HPE.
KLA ([[KLAC]] +1.7%) and Lam Research ([[LRCX]] +1.1%) tops Citi analyst Atif Malik's semiconductor equipment and specialty semiconductor stock rankings.Take a look at KLA's sector-relative growth here.Marvel ([[MRVL]] +0.3%) ranked third on multiple expansion potential from 5G and cloud data center growth, while KLAC and LRCX were picked on front-end 5G...
MILPITAS, Calif., Sept. 21, 2020 /PRNewswire/ -- Today, KLA Corporation (NASDAQ: KLAC) announced the launch of the Kronos™ 1190 wafer-level packaging inspection system, the ICOS™ F160XP die sorting and inspection system and the next generation of the ICOS™ T3/T7 Series of packaged…
MILPITAS, Calif., Sept. 21, 2020 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC) today announced the appointment of MaryBeth Wilkinson as executive vice president, chief legal officer and corporate secretary. Based in KLA's second headquarters in Ann Arbor, Michigan, Wilkinson will lead…
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