Using the PEG framework with analyst consensus forward EPS growth of 20.4% plus 0.5% dividend yield, KLA Corporation has a fair value of $745.93 based on NTM EPS (FY2026) of $36.60. The current PEG ratio is 1.96.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 19.9% |
| Dividend Yield | +0.5% |
| Adjusted Growth (clamped 8–25%) | 20.4% |
| Fair P/E | 20.4x |
| NTM EPS (FY2026) | $36.60 |
| Fair Value | $745.93 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $30.37 | — | — |
| FY2026E | $36.60 | +20.5% | 21 |
| FY2027E | $47.91 | +30.9% | 20 |
| FY2028E | $54.69 | +14.2% | 16 |
| FY2029E | $57.27 | +4.7% | 8 |
| FY2030E | $75.29 | +31.5% | 8 |
5Y Forward EPS CAGR: 19.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.1B | $13.37 | — |
| FY2022 | $3.3B | $21.92 | +63.9% |
| FY2023 | $3.4B | $24.15 | +10.2% |
| FY2024 | $2.8B | $20.28 | -16.0% |
| FY2025 | $4.1B | $30.37 | +49.8% |
4Y Historical EPS CAGR: 22.8%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.