FCF $4.0b — solid, comfortably covers operations and capital return
Rev+23.9%TTM YoYA-
Revenue +23.9% — strong growth, well above S&P median (~7%)
D/E1.05C
D/E 1.05 — more levered than most Technology peers (≈90th pctile)
P/E62.5xC+
P/E 62.5 — above the Technology median (≈75th pctile)
PEG2.41C
PEG 2.41 — expensive relative to growth rate
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 68.9
Quality0.70
Growth0.96
Value0.49
Why this score
Raising its dividend
Entry · Margin of safety
52-week rangeMid-range
25% off the 12-month high
vs DCF fair value323% aboveest. fair value ~$54
Quality signals · context only
Gross profitability48% · A-gross profit ÷ total assets (Novy-Marx)
ROIC5.0% · C+return on invested capital — not score-weighted
Why now
Semiconductor Equipment & Materials · market cap $299.8b. Down 25% from 52-week high of $307.37 — deep drawdown territory. Revenue growing +24%, comfortably above the S&P median. 28 sell-side analysts rate this a Buy with a mean 1-yr target of $219.89 (implying -4% upside).
Moat
Net margin 36% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 80% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $299.8b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk
Trailing P/E 62.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 1.41 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 22.9x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon
1-3 yr $219.89 (28-analyst consensus) — fundamentals + valuation re-rating. 5 yr $321.95 at ~7% CAGR — compounding case rests on the competitive position widening. 10 yr $477.58 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · KLAC
$
%
%
Shares to buy
8
Position size
$1,836
3.7% of portfolio
Stop price
$172.14
25% below $229.52
$ at risk if stopped
$459.04
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
KLA Corporation (KLAC): score, valuation & FAQ
KLA Corporation (KLAC) is a Semiconductor Equipment & Materials company that scores 68.9 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-). On valuation, KLAC sits about 323% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is KLAC a good stock to buy?
Bull Rankings scores KLAC 68.9 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (A-). A score is a quantitative screen of KLA Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does KLAC score 68.9 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). KLAC earns its highest marks on Rev (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is KLAC overvalued or undervalued?
Based on $229.52, KLAC sits about 323% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 62.5x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in KLAC?
Trailing P/E 62.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 1.41 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 22.9x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.