KLA Corporation KLAC

Name: KLAC Crucible Score
Creator: Kaladin Capital Intelligence

TechnologySemiconductorsNASDAQ📅 Scored March 18, 2026

Price at analysis: $1489.52

Crucible Score

60.5

C+

Quality × Value Composite

KQI — Quality

78.7

A-

Fundamental Quality Index

KVI — Value

38.3

D-

Valuation Attractiveness Index

Crucible Verdict — KLAC

KLA Corporation delivers exceptional operational execution with a perfect earnings beat streak and strong financial metrics, but trades at a premium that leaves little room for error given the cyclical semiconductor equipment market. KLAC's 38.3 value score reflects stretched valuation despite solid fundamentals and leadership position in process control. The 9% upside to fair value suggests limited near-term appreciation potential.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

90.1

Growth Profile

78.7

Moat Durability

74.1

Management Effectiveness

80.5

Diversification & Resilience

49.2

Market Position

80.0

Weakest dimension: Diversification & Resilience (49.2)

◆ KVI Value Dimensions

DCF Margin of Safety

59.6

FCF Yield & Cash Returns

31.8

Relative Valuation

43.1

Growth-Adjusted Value

15.3

Historical Valuation

13.5

Macro Context

42.3

◆ DCF Valuation Scenarios

Bear Case

$1085.00

Base Case

$1620.00

Bull Case

$2310.00

Price at Analysis

$1489.52

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$1085.00	6.0%	38.0%	12.3%
🟢 Base	$1620.00	10.0%	42.0%	11.7%
🟢 Bull	$2310.00	14.0%	46.0%	10.9%

Key Assumptions: WACC derived using CAPM with 4.39% risk-free rate, 1.45 beta, and 5.25% ERP (base), yielding ~11.65% base WACC; bear/bull shift WACC by +/-70bps. Revenue base of ~$12.2B grows at semiconductor cycle-adjusted rates reflecting KLAC's dominant position in process control; 5-year historical revenue CAGR of ~15% is moderated given cyclicality. Tax rate normalized to ~11.5% reflecting historical range of 5-13%, and capex intensity held near historical ~2.8% of revenue given asset-light inspection/metrology business model.

◆ Financial Snapshot

Profitability

Gross Margin61.9%

Operating Margin42.4%

Net Margin35.8%

ROIC36.3%

ROE83.4%

Balance Sheet

Balance SheetD/E: 1.15*, CR: 2.77* (* = TTM)

Cash ConversionFCF/EPS: 0.96x

Capital IntensityCapex/Rev: 2.8%

Altman Z-Score12.97 (Safe)

Piotroski F-Score8/9 (Strong)

Growth

Revenue CAGR15.1% CAGR

Earnings CAGR18.2% CAGR

Growth ConsistencyCV: 0.60

Segment Breadth5/6 growing (83%)

Quarterly TrendRev∆, Margin↑, WC↓

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$1656.93

Analysts Covering (Quarter)27

Avg Target (Last Year)$1473.88

Analysts (Year)42

Leadership & Governance

CEOKristian Fdenbach · 8 years

CEO Ownership< 1%

Compensation95% performance-based

Insider ActivitySelling

Capital AllocationROIC 36.3% vs WACC 3.9%

Earnings Beat Rate100% (22/22)

◆ Company Profile

KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through four segments: Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection; and Other.

CEO

Richard Wallace

Employees

15000

Headquarters

Milpitas, CA, US

IPO Date

October 8, 1980

Exchange

NASDAQ

Website

kla.com

◆ Related Companies in Our Universe

Other Technology companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 18, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.