COMPILED BY GEMINI 3.1

KLA Corporation (KLAC) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$12.16 per share
Current Price $1,505.34
Margin of Safety -99.2%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
12.0%

" data-astro-cid-76jzq75q> Revenue grew nearly 24% in FY2025, recovering strongly from a dip in FY2024 (-6.5%). As fabrication plants continue adopting more advanced nodes (EUV), metrology and inspection needs surge. We use 12% to smooth out potential semi-cycle dips while acknowledging KLA's critical position in advanced node yields.

Discount Rate (WACC)
9.5%

" data-astro-cid-76jzq75q> Revenue grew nearly 24% in FY2025, recovering strongly from a dip in FY2024 (-6.5%). As fabrication plants continue adopting more advanced nodes (EUV), metrology and inspection needs surge. We use 12% to smooth out potential semi-cycle dips while acknowledging KLA's critical position in advanced node yields.

Terminal Growth Rate
9.5%

" data-astro-cid-76jzq75q> Revenue grew nearly 24% in FY2025, recovering strongly from a dip in FY2024 (-6.5%). As fabrication plants continue adopting more advanced nodes (EUV), metrology and inspection needs surge. We use 12% to smooth out potential semi-cycle dips while acknowledging KLA's critical position in advanced node yields.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 8.5%9.0%9.5%10.0%10.5%
8.5% $12.16 $12.16 $12.16 $12.16 $12.16
9.0% $12.16 $12.16 $12.16 $12.16 $12.16
9.5% $12.16 $12.16 $12.16 $12.16 $12.16
10.0% $12.16 $12.16 $12.16 $12.16 $12.16
10.5% $12.16 $12.16 $12.16 $12.16 $12.16

Undervalued vs current price Overvalued vs current price

Frequently Asked Questions

Why use a 9.5% discount rate instead of 10%?

Westmount Research. "KLA Corporation (KLAC) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, April 10, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.