Stock Analysis on Net
Stock Analysis on Net

KLA Corp. (NASDAQ:KLAC)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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

KLA Corp., EBITDA calculation

US$ in thousands

Microsoft Excel
12 months ended: Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Net income attributable to KLA 3,387,277 3,321,807 2,078,292 1,216,785 1,175,617 802,265
Add: Net income attributable to noncontrolling interest 74 253 (939) (1,760) (600) —
Add: Income tax expense 401,839 167,177 283,101 101,686 121,214 653,666
Earnings before tax (EBT) 3,789,190 3,489,237 2,360,454 1,316,711 1,296,231 1,455,931
Add: Interest expense 296,940 160,339 157,328 160,274 124,604 114,376
Earnings before interest and tax (EBIT) 4,086,130 3,649,576 2,517,782 1,476,985 1,420,835 1,570,307
Add: Depreciation and amortization 415,113 363,344 333,335 348,049 233,224 62,684
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,501,243 4,012,920 2,851,117 1,825,034 1,654,059 1,632,991

Based on: 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), 10-K (reporting date: 2018-06-30).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. KLA Corp. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 91,433,875
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,501,243
Valuation Ratio
EV/EBITDA 20.31
Benchmarks
EV/EBITDA, Competitors1
Advanced Micro Devices Inc. 59.47
Analog Devices Inc. 16.78
Applied Materials Inc. 19.09
Broadcom Inc. 29.56
Intel Corp. 15.52
Lam Research Corp. 20.51
Micron Technology Inc. 51.25
NVIDIA Corp. 55.52
ON Semiconductor Corp. 8.97
Qualcomm Inc. 18.77
Texas Instruments Inc. 17.96
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 43.71
EV/EBITDA, Industry
Information Technology 28.50

Based on: 10-K (reporting date: 2023-06-30).

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

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 70,524,992 60,067,875 54,916,007 33,040,138 23,380,502 17,822,166
Earnings before interest, tax, depreciation and amortization (EBITDA)2 4,501,243 4,012,920 2,851,117 1,825,034 1,654,059 1,632,991
Valuation Ratio
EV/EBITDA3 15.67 14.97 19.26 18.10 14.14 10.91
Benchmarks
EV/EBITDA, Competitors4
Advanced Micro Devices Inc. 65.81 22.63 34.19 62.10 82.59 —
Analog Devices Inc. 15.56 16.23 38.55 23.61 18.67 14.37
Applied Materials Inc. 15.75 11.04 17.54 16.82 14.60 6.24
Broadcom Inc. 26.42 13.54 19.72 18.89 16.32 12.21
Intel Corp. 18.96 6.20 6.02 6.40 8.73 —
Lam Research Corp. 15.35 11.34 16.67 17.76 10.07 7.08
Micron Technology Inc. 32.38 3.26 6.05 6.46 3.90 2.41
NVIDIA Corp. 95.68 57.59 58.96 52.90 21.10 —
ON Semiconductor Corp. 10.57 11.65 14.40 20.27 11.13 —
Qualcomm Inc. 12.82 7.84 12.76 19.49 10.55 28.47
Texas Instruments Inc. 16.36 14.69 15.54 21.75 17.73 —
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 25.99 14.44 15.49 14.76 11.56 —
EV/EBITDA, Industry
Information Technology 23.37 18.28 20.37 19.53 14.42 —

Based on: 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), 10-K (reporting date: 2018-06-30).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 70,524,992 ÷ 4,501,243 = 15.67

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. KLA Corp. EV/EBITDA ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.