Using the industry peer median P/E multiple (trailing + forward), KLA Corporation (KLAC) has a fair value of $1,235.85 based on 7 comparable companies in the Semiconductors industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| KLA CorporationKLAC | 195,341 | 48.1x | 39.9x |
| Applied Materials, Inc.AMAT | 270,054 | 39.3x | 36.3x |
| Lam Research CorporationLRCX | 266,600 | 51.4x | 53.2x |
| Texas Instruments IncorporatedTXN | 177,859 | 35.8x | 30.4x |
| Analog Devices, Inc.ADI | 154,224 | 69.3x | 49.8x |
| Amphenol CorporationAPH | 151,894 | 37.0x | 37.4x |
| QUALCOMM IncorporatedQCOM | 140,314 | 26.2x | 11.0x |
| Accenture plcACN | 120,644 | 16.1x | 14.1x |
| Industry Median | 37.0x | 36.3x | |
| (*) Profit after tax | 4,062 | 4,895 | |
| Equity Value | 150,269 | 180,322 | |
| (/) Outstanding shares | 134 | 134 | |
| Fair Price | $1124 | $1348 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.