KLA Corp., FCFF calculation

US$ in thousands

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)
Net (income) loss attributable to non-controlling interest	74)	253)	(939)	(1,760)	(600)	—)
Net noncash charges	272,341)	296,053)	350,986)	651,190)	303,958)	225,423)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions	10,113)	(305,411)	(243,313)	(87,365)	(326,343)	201,432)
Net cash provided by operating activities	3,669,805)	3,312,702)	2,185,026)	1,778,850)	1,152,632)	1,229,120)
Interest paid, net of tax¹	200,216)	147,249)	135,692)	140,897)	95,402)	97,559)
Capital expenditures	(341,591)	(307,320)	(231,628)	(152,675)	(130,498)	(66,961)
Free cash flow to the firm (FCFF)	3,528,430)	3,152,631)	2,089,090)	1,767,072)	1,117,536)	1,259,718)

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 »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the KLA Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	KLA Corp. FCFF increased from 2021 to 2022 and from 2022 to 2023.

KLA Corp., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Effective Income Tax Rate (EITR)
EITR¹	10.60%	4.80%	12.00%	7.70%	10.90%	14.60%
Interest Paid, Net of Tax
Interest paid, before tax	223,955)	154,673)	154,196)	152,651)	107,073)	114,238)
Less: Interest paid, tax²	23,739)	7,424)	18,504)	11,754)	11,671)	16,679)
Interest paid, net of tax	200,216)	147,249)	135,692)	140,897)	95,402)	97,559)

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 2023 Calculation
Interest paid, tax = Interest paid × EITR
= 223,955 × 10.60% = 23,739

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	93,653,064)
Free cash flow to the firm (FCFF)	3,528,430)
Valuation Ratio
EV/FCFF	26.54
Benchmarks
EV/FCFF, Competitors¹
Advanced Micro Devices Inc.	206.46
Analog Devices Inc.	27.80
Applied Materials Inc.	21.25
Broadcom Inc.	32.83
Intel Corp.	—
Lam Research Corp.	24.49
Micron Technology Inc.	—
NVIDIA Corp.	75.23
ON Semiconductor Corp.	57.89
Qualcomm Inc.	16.96
Texas Instruments Inc.	99.46
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	105.62
EV/FCFF, Industry
Information Technology	41.82

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

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

KLA Corp., historical EV/FCFF calculation, comparison to benchmarks

	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)
Free cash flow to the firm (FCFF)²	3,528,430)	3,152,631)	2,089,090)	1,767,072)	1,117,536)	1,259,718)
Valuation Ratio
EV/FCFF³	19.99	19.05	26.29	18.70	20.92	14.15
Benchmarks
EV/FCFF, Competitors⁴
Advanced Micro Devices Inc.	225.41	38.82	43.41	126.98	169.58	—
Analog Devices Inc.	25.61	23.12	39.16	27.12	21.68	16.04
Applied Materials Inc.	17.40	19.06	26.22	22.52	18.91	9.96
Broadcom Inc.	28.53	14.74	19.47	16.54	15.04	13.02
Intel Corp.	—	—	16.94	11.08	17.39	—
Lam Research Corp.	17.99	24.03	24.02	25.91	9.83	10.36
Micron Technology Inc.	—	18.28	33.81	292.39	14.33	5.37
NVIDIA Corp.	142.90	78.07	69.47	41.65	27.92	—
ON Semiconductor Corp.	67.36	20.67	19.86	33.03	46.88	—
Qualcomm Inc.	11.61	18.18	17.47	30.89	14.91	22.53
Texas Instruments Inc.	90.39	27.05	24.23	27.67	20.75	—
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	61.21	34.74	26.16	22.06	18.29	—
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69	—

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/FCFF = EV ÷ FCFF
= 70,524,992 ÷ 3,528,430 = 19.99

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	KLA Corp. EV/FCFF ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

KLA Corp. (NASDAQ:KLAC)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical