Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
KLA Corp., FCFE 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 cash provided by operating activities
- The net cash provided by operating activities exhibited a generally positive trend from June 30, 2019, to June 30, 2024. Starting at approximately 1.15 billion USD in mid-2019, the figure increased significantly to around 1.78 billion USD in 2020, marking a notable upward movement. This growth continued in 2021, reaching approximately 2.19 billion USD, followed by a more substantial rise in 2022 to over 3.31 billion USD. The trend peaked in 2023 at around 3.67 billion USD before experiencing a slight decline to approximately 3.31 billion USD in 2024. Despite this decline, the cash generated from operations remains robust, maintaining a level significantly higher than earlier periods.
- Free cash flow to equity (FCFE)
- The free cash flow to equity demonstrated more variability compared to operating cash flows during the same period. It started at about 2.20 billion USD in mid-2019 but then decreased to roughly 1.65 billion USD in 2020. There was an increase in 2021 to approximately 1.92 billion USD, followed by a dramatic surge in 2022 reaching over 6.22 billion USD, which is the highest point recorded in the dataset. However, this peak was followed by a significant reduction to around 2.53 billion USD in 2023. In 2024, the FCFE recovered again to approximately 3.77 billion USD, indicating substantial fluctuations in free cash flow generation that may correspond to changes in capital expenditures, financing activities, or working capital adjustments.
- Summary Insights
- Overall, the operating cash flow has shown steady growth with strong performance, particularly from 2020 onward, suggesting improving operational efficiency or revenue generation capacity. In contrast, free cash flow to equity displayed considerable volatility, with a sharp peak in 2022 followed by a decline and partial recovery. This pattern could reflect strategic investment decisions, financing activities, or variable capital expenditure requirements across the years. The company maintains a strong cash flow profile, with operational cash consistently supporting substantial free cash flow levels despite the observed fluctuations.
Price to FCFE Ratio, Current
KLA Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 132,241,430 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 3,766,234) |
| FCFE per share | 28.48 |
| Current share price (P) | 916.09 |
| Valuation Ratio | |
| P/FCFE | 32.17 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | 173.84 |
| Analog Devices Inc. | 30.86 |
| Applied Materials Inc. | 18.71 |
| Broadcom Inc. | 35.18 |
| Intel Corp. | — |
| Lam Research Corp. | 31.64 |
| Micron Technology Inc. | — |
| NVIDIA Corp. | 71.85 |
| Qualcomm Inc. | 17.20 |
| Texas Instruments Inc. | 44.87 |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | 82.71 |
| P/FCFE, Industry | |
| Information Technology | 47.94 |
Based on: 10-K (reporting date: 2024-06-30).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
KLA Corp., historical P/FCFE calculation, comparison to benchmarks
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 134,425,022 | 136,720,074 | 141,803,776 | 152,737,157 | 155,461,444 | 159,255,950 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 3,766,234) | 2,534,449) | 6,227,791) | 1,923,741) | 1,646,974) | 2,203,445) | |
| FCFE per share3 | 28.02 | 18.54 | 43.92 | 12.60 | 10.59 | 13.84 | |
| Share price1, 4 | 703.48 | 496.47 | 395.74 | 353.35 | 202.85 | 136.12 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 25.11 | 26.78 | 9.01 | 28.05 | 19.15 | 9.84 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Advanced Micro Devices Inc. | 109.67 | 241.70 | 33.46 | 44.72 | 133.51 | — | |
| Analog Devices Inc. | 29.30 | 22.28 | 24.14 | 34.67 | 33.98 | 37.52 | |
| Applied Materials Inc. | 17.05 | 17.53 | 19.17 | 27.20 | 23.21 | 19.53 | |
| Broadcom Inc. | 26.03 | 30.06 | 14.62 | 22.35 | 9.16 | 5.64 | |
| Intel Corp. | — | — | — | 14.25 | 8.57 | — | |
| Lam Research Corp. | 25.89 | 18.67 | 24.95 | 34.58 | 16.89 | 6.14 | |
| Micron Technology Inc. | — | — | 18.66 | 37.24 | 81.71 | 13.92 | |
| NVIDIA Corp. | 65.45 | 151.07 | 54.83 | 35.22 | 44.24 | — | |
| Qualcomm Inc. | 18.57 | 11.97 | 19.13 | 17.93 | 34.91 | 16.39 | |
| Texas Instruments Inc. | 42.96 | 37.61 | 23.88 | 21.87 | 24.10 | — | |
| P/FCFE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 45.81 | 47.55 | 29.02 | 24.87 | 17.64 | — | |
| P/FCFE, Industry | |||||||
| Information Technology | 36.62 | 33.24 | 26.89 | 27.39 | 23.42 | — | |
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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,766,234,000 ÷ 134,425,022 = 28.02
4 Closing price as at the filing date of KLA Corp. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 703.48 ÷ 28.02 = 25.11
6 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrates a consistent upward trajectory across the observed periods, rising from $136.12 in mid-2019 to $703.48 by mid-2024. Notably, there is a substantial acceleration in price growth from 2022 onwards, indicating heightened market valuation or investor confidence.
- FCFE per Share Trend
- Free Cash Flow to Equity (FCFE) per share shows variability over the years. It declined from $13.84 in 2019 to $10.59 in 2020 but then recovered to $12.60 in 2021. A significant spike occurs in 2022 with FCFE reaching $43.92, followed by a drop to $18.54 in 2023, and a moderate increase to $28.02 in 2024. This volatility suggests fluctuation in cash generation available to equity holders, with a notable peak in 2022.
- P/FCFE Ratio Analysis
- The Price to FCFE ratio reflects market valuation relative to cash flow per share and shows considerable fluctuations. Starting at 9.84 in 2019, it nearly doubles to 19.15 in 2020 and further rises to 28.05 in 2021, implying increased valuation multiples. In 2022, the ratio sharply decreases to 9.01, coinciding with the FCFE per share spike, indicating a lower price premium over cash flow that year. Subsequently, it rises again to 26.78 in 2023 and slightly declines to 25.11 in 2024, signaling a return to higher valuation multiples despite relatively lower FCFE.
- Overall Insights
- The data exhibits a general trend of rising share prices with fluctuating FCFE per share, leading to swings in valuation multiples. The sharp increase in FCFE per share in 2022 temporarily reduced valuation multiples, but thereafter, elevated price levels have resulted in high P/FCFE ratios, suggesting strong market optimism or expectations for future performance relative to current cash flow metrics.