DCF Tool

KLAC

KLA Corp. – Optical Instrument and Lens Manufacturing
KLA develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, printed circuit boards and flat panel displays. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward.
Analysis Results
Intrinsic Value $306.58
Latest Price $335.48
Relative Value 9% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 24.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 13.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 24.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.91 2.57
2023 3.61 2.82
2024 4.48 3.09
2025 5.56 3.39
2026 6.9 3.72
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 63.2 billion. This corresponds to a present value of 30.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 15.6 billion. Adding in the terminal value gives a total present value of 45.8 billion.

There are presently 149.0 million outstanding shares, so the intrinsic value per share is 306.58.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,696,248,000
Current Cash 2,494,522,000
Current Liabilities 2,103,227,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 1,118,499,000
Change in NCWC 75,212,000
EBIT 2,488,480,000
Tax Provision 283,101,000
Depreciation and Amortization 333,335,000
Capital Expenditure -231,628,000
Unlevered Free Cash Flow 2,366,943,204
Current Assets 4,723,545,000
Current Cash 1,980,472,000
Current Liabilities 1,699,786,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,043,287,000
Change in NCWC -13,916,000
EBIT 1,758,850,000
Tax Provision 101,686,000
Depreciation and Amortization 348,049,000
Capital Expenditure -152,675,000
Unlevered Free Cash Flow 1,804,476,810
Current Assets 4,315,075,000
Current Cash 1,739,385,000
Current Liabilities 1,768,486,000
Current Debt 249,999,000
Non-Cash Working Capital (NCWC) 1,057,203,000
Change in NCWC 606,604,000
EBIT 1,389,373,000
Tax Provision 121,214,000
Depreciation and Amortization 233,224,000
Capital Expenditure -130,498,000
Unlevered Free Cash Flow 1,968,779,044
Current Assets 4,549,000,000
Current Cash 2,880,318,000
Current Liabilities 1,218,083,000
Current Debt 0
Non-Cash Working Capital (NCWC) 450,599,000
Change in NCWC 118,452,000
EBIT 1,537,194,000
Tax Provision 653,666,000
Depreciation and Amortization 62,684,000
Capital Expenditure -66,961,000
Unlevered Free Cash Flow 961,218,537
Current Assets 4,392,066,000
Current Cash 3,016,740,000
Current Liabilities 1,293,162,000
Current Debt 249,983,000
Non-Cash Working Capital (NCWC) 332,147,000
Change in NCWC -42,168,000
EBIT 1,276,261,000
Tax Provision 247,170,000
Depreciation and Amortization 57,836,000
Capital Expenditure -38,594,000
Unlevered Free Cash Flow 984,462,631
Current Assets 3,868,032,000
Current Cash 2,491,294,000
Current Liabilities 1,002,423,000
Current Debt 0
Non-Cash Working Capital (NCWC) 374,315,000
Change in NCWC -158,368,000
EBIT 960,445,000
Tax Provision 153,770,000
Depreciation and Amortization 66,932,000
Capital Expenditure -31,741,000
Unlevered Free Cash Flow 665,176,407
Current Assets 3,904,576,000
Current Cash 2,387,111,000
Current Liabilities 1,001,763,000
Current Debt 16,981,000
Non-Cash Working Capital (NCWC) 532,683,000
Change in NCWC -5,899,000
EBIT 661,340,000
Tax Provision 67,973,000
Depreciation and Amortization 80,536,000
Capital Expenditure -45,791,000
Unlevered Free Cash Flow 586,638,306
Current Assets 4,586,830,000
Current Cash 3,152,637,000
Current Liabilities 895,611,000
Current Debt 0
Non-Cash Working Capital (NCWC) 538,582,000
Change in NCWC -32,508,000
EBIT 772,070,000
Tax Provision 151,706,000
Depreciation and Amortization 83,072,000
Capital Expenditure -67,502,000
Unlevered Free Cash Flow 595,657,703
Current Assets 4,351,503,000
Current Cash 2,918,881,000
Current Liabilities 861,532,000
Current Debt 0
Non-Cash Working Capital (NCWC) 571,090,000
Change in NCWC -195,602,000
EBIT 729,685,000
Tax Provision 147,472,000
Depreciation and Amortization 87,534,000
Capital Expenditure -74,573,000
Unlevered Free Cash Flow 391,230,454
Current Assets 4,164,043,000
Current Cash 2,534,444,000
Current Liabilities 862,907,000
Current Debt 0
Non-Cash Working Capital (NCWC) 766,692,000
Change in NCWC 11,235,000
EBIT 1,016,325,000
Tax Provision 218,079,000
Depreciation and Amortization 92,133,000
Capital Expenditure -57,596,000
Unlevered Free Cash Flow 834,563,374

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