Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

KLA Corp., FCFE calculation

US$ in thousands

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income attributable to KLA	4,061,643)	2,761,896)	3,387,277)	3,321,807)	2,078,292)	1,216,785)
Net (income) loss attributable to non-controlling interest	—)	—)	74)	253)	(939)	(1,760)
Net noncash charges	666,435)	747,860)	272,341)	296,053)	350,986)	651,190)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions	(646,175)	(201,181)	10,113)	(305,411)	(243,313)	(87,365)
Net cash provided by operating activities	4,081,903)	3,308,575)	3,669,805)	3,312,702)	2,185,026)	1,778,850)
Acquisition of intellectual property	(4,950)	—)	—)	—)	—)	—)
Capital expenditures	(335,259)	(277,384)	(341,591)	(307,320)	(231,628)	(152,675)
Payment of debt issuance costs	—)	—)	(6,515)	—)	—)	—)
Proceeds from issuance of debt, net of issuance costs	—)	735,043)	—)	2,967,409)	40,343)	741,832)
Proceeds from revolving credit facility, net of costs	—)	—)	300,000)	875,000)	—)	450,000)
Repayment of debt	(750,000)	—)	(1,087,250)	(620,000)	(70,000)	(1,171,033)
Free cash flow to equity (FCFE)	2,991,694)	3,766,234)	2,534,449)	6,227,791)	1,923,741)	1,646,974)

Based on: 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), 10-K (reporting date: 2020-06-30).

Net Cash Provided by Operating Activities: Over the observed period, net cash generated from operating activities exhibits a generally upward trend with some fluctuations. Beginning at approximately $1.78 billion in mid-2020, there was a notable increase to around $2.19 billion in mid-2021. This positive momentum continues sharply into mid-2022, reaching approximately $3.31 billion. The cash flow peaks further in mid-2023 at about $3.67 billion before dipping slightly to $3.31 billion in mid-2024 and then rising again significantly to about $4.08 billion by mid-2025. These variations indicate overall strengthening operational cash generation capacity with some variability potentially due to external factors or internal investment decisions.
Free Cash Flow to Equity (FCFE): The free cash flow to equity demonstrates more pronounced fluctuations compared to operating cash flow. Starting at roughly $1.65 billion in mid-2020, it rises moderately to about $1.92 billion by mid-2021. Thereafter, a substantial surge occurs in mid-2022, reaching an exceptional high of approximately $6.23 billion, more than tripling the prior year’s value. However, this peak is followed by a steep decline to around $2.53 billion in mid-2023. Mid-2024 shows a recovery with an increase to approximately $3.77 billion, before FCFE decreases again to roughly $2.99 billion by mid-2025. These sharp fluctuations suggest significant changes in capital expenditures, financing activities, or working capital adjustments impacting the cash available to equity holders.
Overall Insights: The data reveals robust operating cash flow growth overall, which supports the firm's operational health and liquidity position. Meanwhile, FCFE exhibits high volatility, reflecting strategic financial management or external financial influences affecting the equity cash position. The peak FCFE value in mid-2022 notably contrasts with the relatively steadier operating cash flow trend, indicating extraordinary financial events or transactions during that period. The subsequent moderation in FCFE values suggests a return to more normalized levels, though still elevated compared to the early years. The firm’s ability to generate increasing operating cash flow while managing significant FCFE variability may reflect a dynamic approach to balancing reinvestment, shareholder returns, and capital structure optimization.

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Price to FCFE Ratio, Current

KLA Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,306,275,210
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	2,991,694)
FCFE per share	2.29
Current share price (P)	269.16
Valuation Ratio
P/FCFE	117.52
Benchmarks
P/FCFE, Competitors¹
Advanced Micro Devices Inc.	128.32
Analog Devices Inc.	40.73
Applied Materials Inc.	84.85
Broadcom Inc.	77.40
Intel Corp.	—
Lam Research Corp.	104.38
Micron Technology Inc.	923.67
NVIDIA Corp.	52.23
Qualcomm Inc.	18.05
Texas Instruments Inc.	99.08
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	101.20
P/FCFE, Industry
Information Technology	58.33

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

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, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
No. shares of common stock outstanding¹	1,319,613,700	1,344,250,220	1,367,200,740	1,418,037,760	1,527,371,570	1,554,614,440
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	2,991,694)	3,766,234)	2,534,449)	6,227,791)	1,923,741)	1,646,974)
FCFE per share³	2.27	2.80	1.85	4.39	1.26	1.06
Share price^1, 4	91.48	70.35	49.65	39.57	35.34	20.29
Valuation Ratio
P/FCFE⁵	40.35	25.11	26.78	9.01	28.06	19.15
Benchmarks
P/FCFE, Competitors⁶
Advanced Micro Devices Inc.	46.56	109.67	241.70	33.46	44.72	—
Analog Devices Inc.	23.16	29.30	22.28	24.14	34.67	33.98
Applied Materials Inc.	34.31	17.05	17.53	19.17	27.20	23.21
Broadcom Inc.	64.89	26.03	30.06	14.62	22.35	9.16
Intel Corp.	—	—	—	—	14.25	—
Lam Research Corp.	26.31	25.89	18.67	24.95	34.58	16.89
Micron Technology Inc.	142.55	—	—	18.66	37.24	81.71
NVIDIA Corp.	53.74	65.45	151.07	54.83	35.22	—
Qualcomm Inc.	14.86	18.57	11.97	19.13	17.93	34.91
Texas Instruments Inc.	65.85	42.96	37.61	23.88	21.87	—
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	54.77	45.81	47.55	29.02	24.87	—
P/FCFE, Industry
Information Technology	45.29	36.69	33.14	26.97	27.38	—

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,991,694,000 ÷ 1,319,613,700 = 2.27

⁴ Closing price as at the filing date of KLA Corp. Annual Report.

⁵ 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 91.48 ÷ 2.27 = 40.35

⁶ Click competitor name to see calculations.

The financial performance from June 30, 2020, to June 30, 2025, is characterized by a consistent appreciation in share price contrasted with significant volatility in Free Cash Flow to Equity (FCFE) per share. This divergence has resulted in a fluctuating Price to FCFE (P/FCFE) ratio, reflecting shifts in market valuation multiples over the six-year period.

Share Price Trajectory: A sustained upward trend is observed, with the share price increasing from 20.29 US$ in 2020 to 91.48 US$ in 2025. The growth has been linear and aggressive, indicating strong market confidence or expansion in company valuation.
FCFE per Share Dynamics: FCFE per share demonstrates a non-linear pattern. After a steady increase between 2020 and 2021, a significant peak was reached in 2022 at 4.39 US$. This was followed by a sharp contraction to 1.85 US$ in 2023. Although a recovery to 2.80 US$ occurred in 2024, the figure declined again to 2.27 US$ by June 30, 2025.
P/FCFE Ratio Interpretation: The P/FCFE ratio exhibits high volatility. A sharp valuation compression occurred in 2022, where the ratio fell to 9.01, coinciding with the peak in FCFE per share. Between 2023 and 2024, the ratio stabilized within a range of 25.11 to 26.78. However, by June 30, 2025, the ratio expanded to 40.35, the highest in the observed period. This suggests that the market is currently assigning a significant premium to the share price despite a decrease in per-share cash flow availability.