Latest Ratios: P/E Ratio 51.5x · EV/EBITDA 43.4x · ROE 87.5%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $246.0B | $398.1B | $119.8B | $112.3B | $68.0B | $48.4B | $50.4B | $30.7B | $18.6B | $16.1B | $14.4B |
| Enterprise Value | $250.2B | $402.4B | $123.8B | $117.1B | $72.1B | $53.6B | $52.5B | $33.1B | $21.0B | $17.0B | $16.2B |
| P/E Ratio → | 51.45 | 82.43 | 29.49 | 40.66 | 20.08 | 14.56 | 24.25 | 25.26 | 15.78 | 20.10 | 15.56 |
| P/S Ratio | 18.12 | 29.32 | 9.86 | 11.44 | 6.48 | 5.25 | 7.28 | 5.29 | 4.06 | 4.00 | 4.14 |
| P/B Ratio | 39.14 | 62.70 | 25.53 | 33.34 | 23.29 | 34.57 | 14.93 | 11.46 | 6.93 | 9.95 | 10.86 |
| P/FCF | 65.30 | 105.69 | 32.02 | 37.04 | 20.44 | 16.09 | 25.80 | 18.90 | 18.15 | 13.88 | 13.84 |
| P/OCF | 59.38 | 96.10 | 29.35 | 33.94 | 18.53 | 14.60 | 23.06 | 17.28 | 16.09 | 13.12 | 13.35 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 29.63 | 10.18 | 11.94 | 6.87 | 5.81 | 7.59 | 5.69 | 4.59 | 4.20 | 4.65 |
| EV / EBITDA | 43.45 | 69.87 | 22.89 | 29.01 | 16.36 | 13.33 | 18.61 | 15.69 | 12.92 | 10.60 | 12.19 |
| EV / EBIT | 44.21 | 71.08 | 25.03 | 33.45 | 17.66 | 14.67 | 20.85 | 22.39 | 14.75 | 10.80 | 12.49 |
| EV / FCF | — | 106.81 | 33.09 | 38.64 | 21.68 | 17.82 | 26.88 | 20.33 | 20.50 | 14.60 | 15.55 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.3% | 61.3% | 60.9% | 60.0% | 59.8% | 61.0% | 59.9% | 57.8% | 59.1% | 64.1% | 63.0% |
| Operating Margin | 41.7% | 41.7% | 41.2% | 37.1% | 38.1% | 39.7% | 36.0% | 30.3% | 30.4% | 38.1% | 36.7% |
| Net Profit Margin | 35.6% | 35.6% | 33.4% | 28.1% | 32.3% | 36.1% | 30.0% | 21.0% | 25.7% | 19.9% | 26.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 87.5% | 87.5% | 100.8% | 87.8% | 156.9% | 139.1% | 68.6% | 45.4% | 54.7% | 54.4% | 91.9% |
| ROA | 28.4% | 28.4% | 25.8% | 18.7% | 25.4% | 29.1% | 21.3% | 13.3% | 16.1% | 14.4% | 17.6% |
| ROIC | 44.0% | 44.0% | 44.5% | 35.7% | 43.9% | 45.4% | 35.5% | 26.1% | 27.6% | 41.5% | 33.3% |
| ROCE | 44.2% | 44.2% | 44.1% | 34.5% | 39.8% | 40.8% | 31.6% | 23.7% | 23.9% | 35.6% | 31.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.93 | 0.93 | 1.30 | 2.02 | 2.08 | 4.84 | 1.05 | 1.33 | 1.28 | 1.38 | 2.21 |
| Debt / EBITDA | 1.02 | 1.02 | 1.13 | 1.69 | 1.37 | 1.69 | 1.26 | 1.69 | 2.11 | 1.40 | 2.21 |
| Net Debt / Equity | — | 0.67 | 0.85 | 1.44 | 1.42 | 3.71 | 0.63 | 0.87 | 0.90 | 0.51 | 1.34 |
| Net Debt / EBITDA | 0.74 | 0.74 | 0.74 | 1.20 | 0.94 | 1.29 | 0.75 | 1.11 | 1.48 | 0.52 | 1.34 |
| Debt / FCF | — | 1.12 | 1.07 | 1.60 | 1.24 | 1.73 | 1.08 | 1.44 | 2.36 | 0.72 | 1.71 |
| Interest Coverage | 19.90 | 19.90 | 16.37 | 11.25 | 13.76 | 22.76 | 16.00 | 9.22 | 11.40 | 13.73 | 10.59 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.88 | 2.88 | 2.62 | 2.15 | 2.24 | 2.50 | 2.71 | 2.78 | 2.44 | 3.73 | 3.40 |
| Quick Ratio | 2.03 | 2.03 | 1.83 | 1.50 | 1.47 | 1.75 | 1.96 | 2.01 | 1.73 | 2.97 | 2.83 |
| Cash Ratio | 1.14 | 1.14 | 1.10 | 0.97 | 0.87 | 0.94 | 1.19 | 1.17 | 0.98 | 2.36 | 2.33 |
| Asset Turnover | — | 0.76 | 0.76 | 0.64 | 0.75 | 0.73 | 0.67 | 0.63 | 0.51 | 0.72 | 0.63 |
| Inventory Turnover | 1.44 | 1.44 | 1.48 | 1.29 | 1.47 | 1.67 | 1.76 | 1.87 | 1.48 | 1.55 | 1.76 |
| Days Sales Outstanding | — | 77.66 | 73.07 | 74.57 | 67.30 | 79.89 | 77.31 | 79.46 | 86.61 | 58.92 | 59.90 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.3% | 0.8% | 0.7% | 1.1% | 1.3% | 1.1% | 1.7% | 2.5% | 2.5% | 2.4% |
| Payout Ratio | 21.9% | 21.9% | 22.3% | 28.0% | 21.6% | 19.2% | 26.9% | 42.9% | 40.2% | 50.1% | 37.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 1.2% | 3.4% | 2.5% | 5.0% | 6.9% | 4.1% | 4.0% | 6.3% | 5.0% | 6.4% |
| FCF Yield | 1.5% | 0.9% | 3.1% | 2.7% | 4.9% | 6.2% | 3.9% | 5.3% | 5.5% | 7.2% | 7.2% |
| Buyback Yield | 0.9% | 0.6% | 1.8% | 1.5% | 1.9% | 10.1% | 1.9% | 2.7% | 5.9% | 1.3% | 0.2% |
| Total Shareholder Yield | 1.4% | 0.8% | 2.5% | 2.2% | 3.0% | 11.4% | 3.0% | 4.4% | 8.4% | 3.8% | 2.6% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.4B | $1.4B | $1.5B | $1.6B | $1.6B | $1.6B | $1.6B | $1.6B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KLAC stock.
KLA Corporation's current P/E ratio is 51.5x. The historical average is 39.5x. This places it at the 83th percentile of its historical range.
KLA Corporation's current EV/EBITDA is 43.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.2x.
KLA Corporation's return on equity (ROE) is 87.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 41.4%.
Based on historical data, KLA Corporation is trading at a P/E of 51.5x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
KLA Corporation's current dividend yield is 0.43% with a payout ratio of 21.9%.
KLA Corporation has 61.3% gross margin and 41.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
KLA Corporation's Debt/EBITDA ratio is 1.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
China export control exposure
Metrics are mathematically derived from official filings.
Margins Defend Premium Valuation
According to the latest quarterly data, KLAC's gross margin held at 61.4% in 2026Q4, while operating margin expanded to 42.5%, both well above peers like AMAT and LRCX, underscoring pricing power.
The stability of gross margin near 61% despite mix shifts suggests that KLA's pricing power is resilient, likely due to its dominant position in process control. Operating margin expansion from 36.0% in 2024Q3 to 42.5% in 2026Q4 indicates strong operating leverage, as revenue growth outpaces fixed cost increases. This margin profile supports the premium valuation, but investors should monitor whether the recent EPS miss signals any mix deterioration that could pressure margins.
ROIC Recovery Masks Efficiency Drag
Based on reported figures, KLAC's ROIC improved to 11.1% in 2026Q4 from 8.2% in 2024Q3, yet remains below peers like AMAT (32.9%) and LRCX (65.2%), reflecting lower asset turnover.
The improvement in ROIC is driven by margin expansion rather than asset efficiency, as asset turnover has remained flat near 0.20. This suggests that KLA's returns are heavily dependent on its high margins, which may be sustainable given its moat, but the low turnover indicates a capital-intensive installed base. Compared to peers, KLA's ROIC is structurally lower, which may justify a valuation discount to ASML but not to AMAT or LRCX, given its superior margins.
Working Capital Drags Cash Conversion
As reported in financial statements, KLAC's cash conversion cycle lengthened to 258 days in 2026Q4 from 324 days in 2024Q3, driven by high DIO of 228 days, while DSO improved to 67 days.
The extended DIO reflects the build-up of inventory, likely in anticipation of demand, but it also ties up cash and contributes to the recent deterioration in operating cash flow to net income ratio (0.66 in 2026Q4). The improvement in DSO suggests better collection efficiency, but the overall CCC remains elevated, indicating that working capital management is a drag on cash generation. Investors should monitor whether inventory levels normalize as revenue grows, or if this signals a structural shift.
Leverage Declines as Equity Surges
According to the latest quarterly data, KLAC's debt-to-equity ratio fell to 0.97 in 2026Q4 from 2.20 in 2024Q3, while interest coverage improved to 19.01, indicating reduced financial risk.
The decline in leverage is primarily due to a 103% year-over-year increase in equity, driven by retained earnings, rather than debt reduction. This strengthens the balance sheet and provides flexibility for continued capital returns. Interest coverage of 19x suggests debt service is comfortable, but the absolute debt level of ~$6.2B remains significant, and investors should watch for any refinancing needs given the current rate environment.
Liquidity Buffer Strengthens Despite Cash Dip
Based on reported figures, KLAC's current ratio improved to 2.88 in 2026Q4 from 2.14 in 2024Q3, even as cash declined to $1.6B, indicating a robust liquidity position.
The improvement in the current ratio is driven by a rise in current assets, likely inventory and receivables, which may not be as liquid as cash. However, the quick ratio of 2.03 still provides a comfortable cushion. Under a severe demand shock, the high inventory levels could become a drag, but the low debt and strong cash generation suggest KLA can weather cyclical downturns better than peers.
P/E Misleads on Cyclical Earnings
The most commonly misapplied ratio for KLAC is the trailing P/E of 50.27, which overstates expensiveness because it fails to capture the cyclical trough in earnings; forward P/E of 33.90 is more indicative.
KLA's earnings are highly cyclical, tied to semiconductor capital expenditure cycles. The trailing P/E is distorted by a period of depressed earnings, making the stock appear expensive. Investors should use a mid-cycle earnings estimate or forward P/E to assess valuation. Additionally, EV/EBITDA of 42.47 is elevated, but given KLA's high margins and low capital intensity, a discounted cash flow analysis may be more appropriate than simple multiples.