Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

KLA Corp., EBITDA calculation

US$ in thousands

12 months ended:	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income attributable to KLA	4,830,771)	4,061,643)	2,761,896)	3,387,277)	3,321,807)	2,078,292)
Add: Net income attributable to noncontrolling interest	—)	—)	—)	74)	253)	(939)
Add: Income tax expense	775,154)	582,805)	428,136)	401,839)	167,177)	283,101)
Earnings before tax (EBT)	5,605,925)	4,644,448)	3,190,032)	3,789,190)	3,489,237)	2,360,454)
Add: Interest expense	284,440)	302,166)	311,253)	296,940)	160,339)	157,328)
Earnings before interest and tax (EBIT)	5,890,365)	4,946,614)	3,501,285)	4,086,130)	3,649,576)	2,517,782)
Add: Depreciation and amortization	393,978)	394,088)	401,730)	415,113)	363,344)	333,335)
Earnings before interest, tax, depreciation and amortization (EBITDA)	6,284,343)	5,340,702)	3,903,015)	4,501,243)	4,012,920)	2,851,117)

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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).

The financial trajectory of earnings metrics from June 30, 2021, through June 30, 2026, indicates a general upward trend characterized by significant growth, a mid-period contraction, and a subsequent strong recovery. EBITDA serves as the primary indicator of operational cash flow potential, showing an overall increase from 2.85 billion USD in 2021 to a projected 6.28 billion USD by 2026.

EBITDA Growth and Volatility: A period of rapid expansion is observed between 2021 and 2023, where EBITDA grew from 2.85 billion USD to 4.50 billion USD. This progression was interrupted in 2024, which saw a decline to 3.90 billion USD, representing a contraction of approximately 13.3% compared to the previous year. However, the subsequent projections for 2025 and 2026 suggest a robust rebound, with EBITDA expected to reach 5.34 billion USD and 6.28 billion USD, respectively.
Correlation Across Earnings Tiers: A high degree of positive correlation exists between EBITDA, EBIT, EBT, and Net Income. All four metrics mirror the same growth and contraction patterns, specifically the peak in 2023 and the dip in 2024. This synchronization suggests that the fluctuations are driven by core operational performance and revenue volatility rather than isolated shifts in interest expenses or tax obligations.
Analysis of Non-Cash Charges: The variance between EBITDA and EBIT remains relatively stable over the six-year period, fluctuating between approximately 333 million USD and 415 million USD. This stability indicates that depreciation and amortization expenses are consistent and not subject to the same volatility as operational earnings, suggesting a steady capital asset base.
Net Profitability Conversion: The transition from EBITDA to Net Income demonstrates the impact of taxes, interest, and depreciation. By June 30, 2026, the projected conversion from an EBITDA of 6.28 billion USD to a Net Income of 4.83 billion USD suggests a highly efficient bottom-line conversion rate, indicating controlled operational overhead and manageable financing costs.

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Enterprise Value to EBITDA Ratio, Current

KLA Corp., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	232,230,729)
Earnings before interest, tax, depreciation and amortization (EBITDA)	6,284,343)
Valuation Ratio
EV/EBITDA	36.95
Benchmarks
EV/EBITDA, Competitors¹
Advanced Micro Devices Inc.	124.17
Analog Devices Inc.	37.19
Applied Materials Inc.	35.17
Broadcom Inc.	50.59
Intel Corp.	39.64
Lam Research Corp.	40.48
Marvell Technology Inc.	47.58
Micron Technology Inc.	62.27
NVIDIA Corp.	36.68
Qualcomm Inc.	12.70
Texas Instruments Inc.	30.62
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment	54.29
EV/EBITDA, Industry
Information Technology	36.93

Based on: 10-K (reporting date: 2026-06-30).

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, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	253,435,976)	122,107,895)	96,694,143)	70,529,094)	60,062,203)	54,923,644)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	6,284,343)	5,340,702)	3,903,015)	4,501,243)	4,012,920)	2,851,117)
Valuation Ratio
EV/EBITDA³	40.33	22.86	24.77	15.67	14.97	19.26
Benchmarks
EV/EBITDA, Competitors⁴
Advanced Micro Devices Inc.	—	43.70	34.40	65.81	22.63	34.19
Analog Devices Inc.	—	25.52	27.10	15.56	16.23	38.55
Applied Materials Inc.	—	20.40	15.31	15.75	11.04	17.54
Broadcom Inc.	—	46.47	45.78	26.42	13.54	19.72
Intel Corp.	—	17.16	97.96	18.96	6.20	6.02
Lam Research Corp.	43.76	19.50	20.93	15.36	11.36	16.94
Marvell Technology Inc.	17.82	97.63	72.63	23.44	65.75	84.53
Micron Technology Inc.	—	11.63	12.40	32.38	3.26	6.05
NVIDIA Corp.	32.50	36.78	46.95	95.69	57.58	58.98
Qualcomm Inc.	—	13.05	15.19	12.82	7.84	12.76
Texas Instruments Inc.	—	25.46	22.89	16.36	14.69	15.54
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment	—	31.23	34.26	26.50	14.87	15.76
EV/EBITDA, Industry
Information Technology	—	27.45	27.70	23.55	18.32	20.52

¹ See details »

² See details »

³ 2026 Calculation
EV/EBITDA = EV ÷ EBITDA
= 253,435,976 ÷ 6,284,343 = 40.33

⁴ Click competitor name to see calculations.

The valuation trajectory exhibits a consistent upward trend in total enterprise value, coupled with fluctuating operational earnings, resulting in a volatile EV/EBITDA multiple over the observed period. While Enterprise Value grew steadily through 2025, an extraordinary surge occurred in 2026, causing the valuation multiple to expand sharply.

Enterprise Value Expansion: Enterprise value increased from approximately 54.9 billion in 2021 to 253.4 billion in 2026. A steady growth pattern was maintained between 2021 and 2025, followed by a precipitous acceleration between June 30, 2025, and June 30, 2026, where the value more than doubled within a single year.
EBITDA Performance: Earnings before interest, tax, depreciation, and amortization grew from 2.85 billion in 2021 to 6.28 billion in 2026. This growth was interrupted by a notable contraction in 2024, where earnings fell to 3.90 billion from a 2023 peak of 4.50 billion, before rebounding strongly in the subsequent periods.
EV/EBITDA Ratio Analysis: The EV/EBITDA multiple demonstrated significant variance, shifting from a high of 19.26 in 2021 to a low of 14.97 in 2022. A sharp increase to 24.77 was observed in 2024, coinciding with the dip in EBITDA. The ratio culminated in a peak of 40.33 in 2026, signaling that the increase in enterprise value significantly outpaced the growth in operational cash flows during the final period.