Stock Analysis on Net
Stock Analysis on Net

KLA Corp. (NASDAQ:KLAC)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

KLA Corp., FCFE calculation

US$ in thousands

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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
Capital expenditures (341,591) (307,320) (231,628) (152,675) (130,498) (66,961)
Payment of debt issuance costs (6,515) — — — — —
Proceeds from issuance of debt, net of issuance costs — 2,967,409 40,343 741,832 1,183,785 —
Proceeds from revolving credit facility, net of costs 300,000 875,000 — 450,000 900,000 248,693
Repayment of debt (1,087,250) (620,000) (70,000) (1,171,033) (902,474) (946,250)
Free cash flow to equity (FCFE) 2,534,449 6,227,791 1,923,741 1,646,974 2,203,445 464,602

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
FCFE Free cash flow to equity is the cash flow available to KLA Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. KLA Corp. FCFE increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Price to FCFE Ratio, Current

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

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No. shares of common stock outstanding 135,233,651
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 2,534,449
FCFE per share 18.74
Current share price (P) 628.16
Valuation Ratio
P/FCFE 33.52
Benchmarks
P/FCFE, Competitors1
Advanced Micro Devices Inc. 211.36
Analog Devices Inc. 22.52
Applied Materials Inc. 20.54
Broadcom Inc. 32.40
Intel Corp. —
Lam Research Corp. 24.51
Micron Technology Inc. —
NVIDIA Corp. 73.92
ON Semiconductor Corp. 204.60
Qualcomm Inc. 17.06
Texas Instruments Inc. 37.72
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 78.40
P/FCFE, Industry
Information Technology 39.57

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

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

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
No. shares of common stock outstanding1 136,720,074 141,803,776 152,737,157 155,461,444 159,255,950 156,126,508
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 2,534,449 6,227,791 1,923,741 1,646,974 2,203,445 464,602
FCFE per share3 18.54 43.92 12.60 10.59 13.84 2.98
Share price1, 4 496.47 395.74 353.35 202.85 136.12 118.27
Valuation Ratio
P/FCFE5 26.78 9.01 28.05 19.15 9.84 39.74
Benchmarks
P/FCFE, Competitors6
Advanced Micro Devices Inc. 241.70 33.46 44.72 133.51 — —
Analog Devices Inc. 22.28 24.14 34.67 33.98 37.52 50.53
Applied Materials Inc. 17.53 19.17 27.20 23.21 19.53 10.21
Broadcom Inc. 30.06 14.62 22.35 9.16 5.64 13.72
Intel Corp. — — 14.25 8.57 16.55 —
Lam Research Corp. 18.67 24.95 34.58 16.89 6.14 14.02
Micron Technology Inc. — 18.66 37.24 81.71 13.92 —
NVIDIA Corp. 151.04 54.83 35.20 44.23 30.19 —
ON Semiconductor Corp. 261.49 21.51 38.47 50.56 9.02 —
Qualcomm Inc. 11.97 19.13 17.93 34.91 16.39 —
Texas Instruments Inc. 37.61 23.88 21.87 24.10 18.77 —
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 48.11 28.83 25.00 17.80 14.04 —
P/FCFE, Industry
Information Technology 33.34 26.56 27.30 23.29 18.92 —

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 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,534,449,000 ÷ 136,720,074 = 18.54

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

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 496.47 ÷ 18.54 = 26.78

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. KLA Corp. P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.