Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

KLA Corporation (KLAC)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$1,134.70 - $6,325.43$2,170.15
Multi-Stage$650.42 - $711.43$680.37
Blended Fair Value$1,425.26
Current Price$1,078.60
Upside32.14%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS11.61%-11.42%6.795.805.504.794.203.923.553.022.582.60
YoY Growth--17.02%5.53%14.73%14.15%7.07%10.62%17.46%16.88%-0.66%-88.61%
Dividend Yield--0.63%0.75%1.20%1.58%1.26%2.02%2.22%3.00%2.44%3.73%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,236.83
(-) Cash Dividends Paid (M)960.52
(=) Cash Retained (M)3,276.31
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)847.37529.60317.76
Cash Retained (M)3,276.313,276.313,276.31
(-) Cash Required (M)-847.37-529.60-317.76
(=) Excess Retained (M)2,428.942,746.712,958.55
(/) Shares Outstanding (M)133.21133.21133.21
(=) Excess Retained per Share18.2320.6222.21
LTM Dividend per Share7.217.217.21
(+) Excess Retained per Share18.2320.6222.21
(=) Adjusted Dividend25.4427.8329.42
WACC / Discount Rate7.87%7.87%7.87%
Growth Rate5.50%6.50%7.50%
Fair Value$1,134.70$2,170.15$6,325.43
Upside / Downside5.20%101.20%486.45%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,236.834,512.234,805.525,117.885,450.545,804.835,978.97
Payout Ratio22.67%36.14%49.60%63.07%76.53%90.00%92.50%
Projected Dividends (M)960.521,630.572,383.663,227.764,171.535,224.345,530.55

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.87%7.87%7.87%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,497.471,511.661,525.86
Year 2 PV (M)2,010.402,048.692,087.34
Year 3 PV (M)2,500.112,571.882,645.01
Year 4 PV (M)2,967.373,081.493,198.86
Year 5 PV (M)3,412.933,577.783,748.93
PV of Terminal Value (M)74,252.7177,839.1481,562.84
Equity Value (M)86,640.9990,630.6494,768.84
Shares Outstanding (M)133.21133.21133.21
Fair Value$650.42$680.37$711.43
Upside / Downside-39.70%-36.92%-34.04%

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