DCF Tool


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 $3,080.27
Latest Price $385.00
Relative Value 88% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
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 33.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 33.0%, 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)
2023 4.95 4.8
2024 6.59 6.18
2025 8.77 7.96
2026 11.7 10.3
2027 15.5 13.2
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 465 billion. This corresponds to a present value of 384 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 42.4 billion. Adding in the terminal value gives a total present value of 427 billion.

There are presently 138.0 million outstanding shares, so the intrinsic value per share is 3080.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,168,911,000
Current Cash 2,708,008,000
Current Liabilities 2,871,083,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,589,820,000
Change in NCWC 471,321,000
EBIT 3,654,181,000
Tax Provision 167,177,000
Depreciation and Amortization 363,344,000
Capital Expenditure -307,320,000
Unlevered Free Cash Flow 4,006,446,171
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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.