Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
KLA Corp., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
- Net Income Attributable to KLA
- The net income demonstrates a general upward trend from 2019 through 2023, increasing from approximately 1.18 billion USD to 3.39 billion USD. However, this is followed by a decline in 2024, where net income decreases to about 2.76 billion USD. The sharpest growth occurred between 2020 and 2021.
- Earnings Before Tax (EBT)
- EBT also shows consistent growth between 2019 and 2023, rising from around 1.30 billion USD to approximately 3.79 billion USD. Like net income, EBT falls in 2024 to roughly 3.19 billion USD. The rate of increase is notable between 2020 and 2021, with sustained growth continuing until 2023 before the decline.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures reflect a similar trend, rising steadily from about 1.42 billion USD in 2019 to a peak of approximately 4.09 billion USD in 2023. Following this peak, EBIT decreases to around 3.50 billion USD in 2024. Growth between 2020 and 2022 is particularly pronounced.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA displays the same pattern of growth and contraction, increasing from roughly 1.65 billion USD in 2019 to a high of about 4.50 billion USD in 2023, before falling to near 3.90 billion USD in 2024. The most significant escalation is observed from 2020 to 2022.
- Overall Trend Analysis
- Across all key earnings metrics—net income, EBT, EBIT, and EBITDA—the company experienced robust growth over the five-year span from 2019 to 2023. This growth is substantial, with more than doubling in several measures. The peak of financial performance occurs consistently in 2023, followed by a noticeable decline in 2024. These metrics suggest strong operational and financial improvements until 2023 with potential challenges or market conditions impacting profitability in the subsequent year.
Enterprise Value to EBITDA Ratio, Current
KLA Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 124,393,924) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,903,015) |
| Valuation Ratio | |
| EV/EBITDA | 31.87 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | 42.53 |
| Analog Devices Inc. | 30.24 |
| Applied Materials Inc. | 17.07 |
| Broadcom Inc. | 56.64 |
| Intel Corp. | 109.57 |
| Lam Research Corp. | 25.59 |
| Micron Technology Inc. | 14.85 |
| NVIDIA Corp. | 44.73 |
| Qualcomm Inc. | 14.09 |
| Texas Instruments Inc. | 26.82 |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | 56.40 |
| EV/EBITDA, Industry | |
| Information Technology | 34.75 |
Based on: 10-K (reporting date: 2024-06-30).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
KLA Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 96,691,454) | 70,524,992) | 60,067,875) | 54,916,007) | 33,040,138) | 23,380,502) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,903,015) | 4,501,243) | 4,012,920) | 2,851,117) | 1,825,034) | 1,654,059) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 24.77 | 15.67 | 14.97 | 19.26 | 18.10 | 14.14 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Advanced Micro Devices Inc. | 34.40 | 65.81 | 22.63 | 34.19 | 62.10 | — | |
| Analog Devices Inc. | 27.10 | 15.56 | 16.23 | 38.55 | 23.61 | 18.67 | |
| Applied Materials Inc. | 15.31 | 15.75 | 11.04 | 17.54 | 16.82 | 14.60 | |
| Broadcom Inc. | 45.78 | 26.42 | 13.54 | 19.72 | 18.89 | 16.32 | |
| Intel Corp. | 97.96 | 18.96 | 6.20 | 6.02 | 6.40 | — | |
| Lam Research Corp. | 20.93 | 15.36 | 11.36 | 16.94 | 18.35 | 10.69 | |
| Micron Technology Inc. | 12.40 | 32.38 | 3.26 | 6.05 | 6.46 | 3.90 | |
| NVIDIA Corp. | 46.95 | 95.69 | 57.58 | 58.98 | 52.92 | — | |
| Qualcomm Inc. | 15.19 | 12.82 | 7.84 | 12.76 | 19.49 | 10.55 | |
| Texas Instruments Inc. | 22.89 | 16.36 | 14.69 | 15.54 | 21.75 | — | |
| EV/EBITDA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 33.98 | 26.56 | 14.51 | 15.52 | 14.73 | — | |
| EV/EBITDA, Industry | |||||||
| Information Technology | 27.64 | 23.56 | 18.28 | 20.46 | 19.69 | — | |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 96,691,454 ÷ 3,903,015 = 24.77
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibits a consistent upward trajectory over the six-year period, increasing from approximately $23.4 billion in mid-2019 to about $96.7 billion by mid-2024. This more than fourfold increase indicates substantial growth in the company's valuation and market perception over time.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA shows a general rising trend from 2019 through 2023, starting at roughly $1.65 billion and reaching a peak of approximately $4.5 billion in mid-2023. However, in the last reported period (mid-2024), EBITDA declines to about $3.9 billion, indicating a retreat from its highest level while still remaining above earlier years.
- EV/EBITDA Ratio
- The EV/EBITDA multiple reveals variability across the observed years. Starting at 14.14 in mid-2019, it climbs to a peak near 19.26 in mid-2021, suggesting growing valuation multiples relative to earnings. It then declines to around 14.97 by mid-2022 and slightly increases again to 15.67 in mid-2023. A notable spike to 24.77 in mid-2024 is observed, driven by a significant rise in enterprise value coupled with a decline in EBITDA, which indicates increased market valuation relative to earnings and may reflect changing investor expectations or market conditions.