KLA Corporation (KLAC) Stock Analysis
Score CCompounder · Grade A · Bullish
$1,749.56
$1,347.77
-23.0%
10/10
A
Compounder
Investment Thesis
Price is above modeled value range. Quality supports holding but not attractive for new positions.
For New Investors
Price above modeled value range
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $1347.77 (-23.0%). Overvalued vs fundamentals.
PEG-Based EPS
$2,027.11
FCF DCF Model
$1,265.45
EV/EBITDA
$872.03
Blended Fair Value
$1,347.77
Confidence
Medium
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
102/120 points
Investable
ROE (3Y Avg)
94.9%
ROIC-WACC Spread
28.9%
D/E Ratio
1.3x
Current Ratio
2.6x
Interest Coverage
17x
FCF Positive Years
3/3
Quality Flags
- Leverage: D/E 1.3x (2/15 pts)
Market Sentiment
Wall Street Consensus
$1,842.50
+5.3% Upside
29 analysts
Range: $1,450.00 — $2,000.00
Rating: Buy
Our model is more cautious than Wall Street.
Trend & Technical
Price ($1760.26) is 34.3% above SMA 200 ($1310.66). Bullish trend confirmed.
Tech Score 73/100 — Strong technical setup. Trend, momentum, and positioning aligned bullish.
Risk & Reward
Asymmetry Ratio
10.00:1
Expected Return
+109.8%
Bull Upside
+160.0%
Bear Downside
-10.0%
Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of KLAC?
Based on our multi-method conviction analysis, the estimated fair value of KLA Corporation (KLAC) is $1,347.77. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is medium.
Is KLAC a buy, sell, or hold?
KLAC currently has a WATCHLIST rating with a conviction score of 10/10. Price is above modeled value range. Quality supports holding but not attractive for new positions. Price above modeled value range.
Is KLAC a high-quality stock?
KLA Corporation has a quality grade of A (102/120 points), rated as Investable. Key metrics include ROE of 94.9%, ROIC-WACC spread of 28.9%, and D/E ratio of 1.3x.
What type of stock is KLAC?
KLAC is classified as a "compounder" in our framework. High P/E: 49.9x, Low dividend (reinvesting): 0.5%, High beta (cyclical behavior): 1.50, Large cap: $228.5B, Moderate growth: 14.3%
What do Wall Street analysts say about KLAC?
29 Wall Street analysts have a consensus price target of $1,842.50 for KLAC, representing +5.3% upside. Targets range from $1,450.00 to $2,000.00. The consensus recommendation is "Buy". Our model is more cautious than Wall Street.
What are the risks of investing in KLAC?
The risk/reward asymmetry ratio for KLAC is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +109.8%, with bull case upside of +160.0% and bear case downside of -10.0%.
What is the current trend for KLAC?
KLAC is in a bullish trend. Price ($1760.26) is 34.3% above SMA 200 ($1310.66). Bullish trend confirmed. The technical score is 73/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.