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, 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)
Net (income) loss attributable to non-controlling interest	—)	—)	—)	74)	253)	(939)
Net noncash charges	787,986)	666,435)	747,860)	272,341)	296,053)	350,986)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions	(1,475,678)	(646,175)	(201,181)	10,113)	(305,411)	(243,313)
Net cash provided by operating activities	4,143,079)	4,081,903)	3,308,575)	3,669,805)	3,312,702)	2,185,026)
Capital expenditures	(375,945)	(335,259)	(277,384)	(341,591)	(307,320)	(231,628)
Payment of debt issuance costs	—)	—)	—)	(6,515)	—)	—)
Proceeds from issuance of debt, net of issuance costs	(1,602)	—)	735,043)	—)	2,967,409)	40,343)
Proceeds from revolving credit facility, net of costs	—)	—)	—)	300,000)	875,000)	—)
Repayment of debt	—)	(750,000)	—)	(1,087,250)	(620,000)	(70,000)
Free cash flow to equity (FCFE)	3,765,532)	2,996,644)	3,766,234)	2,534,449)	6,227,791)	1,923,741)

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).

Operating cash flows exhibit a general upward trajectory over the analyzed period, increasing from 2.185 billion USD in 2021 to a projected 4.143 billion USD by 2026. While a moderate contraction occurred in 2024, the overall trend indicates a strengthening capacity to generate cash from core business operations.

Operating Cash Flow Performance: A consistent growth pattern is observed between 2021 and 2023, with cash provided by operating activities peaking at 3.669 billion USD in 2023. Following a decline to 3.308 billion USD in 2024, the figures recover strongly, reaching 4.081 billion USD in 2025 and 4.143 billion USD in 2026.
Free Cash Flow to Equity (FCFE) Volatility: FCFE demonstrates significant fluctuations compared to the steadier growth of operating cash flows. A substantial peak occurred in 2022, where FCFE reached 6.227 billion USD, followed by a sharp correction to 2.534 billion USD in 2023. Subsequent years show continued instability, with a rise to 3.766 billion USD in 2024, a decrease to 2.996 billion USD in 2025, and a final recovery to 3.765 billion USD in 2026.
Analysis of FCFE and Operating Cash Divergence: There is a notable divergence between operating cash flows and FCFE in specific periods. In 2022 and 2024, FCFE exceeded net cash provided by operating activities, suggesting a net inflow of cash from financing activities, such as new debt issuance. Conversely, in 2021, 2023, 2025, and 2026, FCFE remained below operating cash flows, indicating that capital expenditures or debt repayments exceeded new borrowings during those intervals.

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Price to FCFE Ratio, Current

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

No. shares of common stock outstanding	1,306,546,783
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	3,765,532)
FCFE per share	2.88
Current share price (P)	176.99
Valuation Ratio
P/FCFE	61.41
Benchmarks
P/FCFE, Competitors¹
Advanced Micro Devices Inc.	130.37
Analog Devices Inc.	34.18
Applied Materials Inc.	58.90
Broadcom Inc.	70.83
Intel Corp.	—
Lam Research Corp.	87.17
Marvell Technology Inc.	117.21
Micron Technology Inc.	775.68
NVIDIA Corp.	55.41
Qualcomm Inc.	14.46
Texas Instruments Inc.	79.79
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	95.37
P/FCFE, Industry
Information Technology	60.83

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

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, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
No. shares of common stock outstanding¹	1,306,546,783	1,319,613,700	1,344,250,220	1,367,200,740	1,418,037,760	1,527,371,570
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	3,765,532)	2,996,644)	3,766,234)	2,534,449)	6,227,791)	1,923,741)
FCFE per share³	2.88	2.27	2.80	1.85	4.39	1.26
Share price^1, 4	193.22	91.48	70.35	49.65	39.57	35.34
Valuation Ratio
P/FCFE⁵	67.04	40.28	25.11	26.78	9.01	28.06
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
Applied Materials Inc.	—	34.31	17.05	17.53	19.17	27.20
Broadcom Inc.	—	64.89	26.03	30.06	14.62	22.35
Intel Corp.	—	—	—	—	—	14.25
Lam Research Corp.	94.20	26.31	25.89	18.67	24.95	34.58
Marvell Technology Inc.	43.27	47.24	84.46	34.85	13.90	72.25
Micron Technology Inc.	—	142.55	—	—	18.66	37.24
NVIDIA Corp.	49.15	53.74	65.45	151.07	54.83	35.22
Qualcomm Inc.	—	14.86	18.57	11.97	19.13	17.93
Texas Instruments Inc.	—	65.85	42.96	37.61	23.88	21.87
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	—	54.68	46.12	47.29	28.10	25.18
P/FCFE, Industry
Information Technology	—	45.06	36.66	33.12	26.68	27.39

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,765,532,000 ÷ 1,306,546,783 = 2.88

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

⁵ 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 193.22 ÷ 2.88 = 67.04

⁶ Click competitor name to see calculations.

An analysis of the financial data reveals a significant divergence between share price appreciation and the growth of Free Cash Flow to Equity (FCFE) per share, resulting in a substantial expansion of the P/FCFE valuation multiple over the observed period.

Share Price Evolution: A consistent upward trajectory is observed in the share price, which grew from 35.34 in June 2021 to 193.22 by June 2026. The growth accelerated sharply in the final year of the period, where the price more than doubled compared to the previous year.
FCFE per Share Performance: Free Cash Flow to Equity per share exhibits high volatility without a sustained growth trend. After a peak of 4.39 in June 2022, the value declined sharply to 1.85 in 2023 and fluctuated between 2.27 and 2.88 through 2026. This indicates that cash flow generation has not kept pace with the increase in market valuation.
P/FCFE Ratio Trends: The P/FCFE ratio demonstrates extreme fluctuation. A notable valuation contraction occurred in June 2022, where the ratio dropped to 9.01, driven by a temporary spike in FCFE per share. However, from 2023 onwards, the ratio climbed steadily, reaching a peak of 67.04 in June 2026. This surge suggests that the market is pricing in significant future growth or that the stock has become substantially overvalued relative to its current equity cash flow generation.

The overall trend indicates a transition from a relatively conservative valuation in 2022 to an aggressive valuation by 2026. The disconnection between the accelerating share price and the stagnant FCFE per share suggests that the recent increase in the P/FCFE ratio is driven primarily by market sentiment and price appreciation rather than fundamental improvements in cash flow per share.