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Independent research · Est. October 2026
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Stock X-Ray · Technology · S&P 500 Full Coverage — Phase 1

KLA (KLAC)

X-Ray dated Oct 28, 2026 · Share price as of Oct 28, 2026 intraday, when the valuation snapshot was captured · Financials from SEC filings (EDGAR) · Valuation multiples from a labelled secondary source
The verdict — valuation label: OVERVALUED

Forward P/E is 28.76x against a peer median of 24.15x, a ratio of 1.19x — above the 1.15x overvalued threshold — with a trailing P/E of 42.95x and a price/sales ratio of 14.77x, the richest in this equipment group. The premium is not paid for by superior growth: latest-quarter revenue growth was +15.2% year over year (PRIMARY/EDGAR), below both Applied Materials' +24.8% in the same brief set and the cluster median of +24.8%, and the PEG ratio of 1.39 is higher than AMAT's 0.73. Delivered demand check: the cluster's median revenue growth was +24.8% year over year — demand rising, but KLA is growing more slowly than that median while charging more for its earnings.

28.8×
Forward P/E — price vs next year’s expected earnings (secondary source)
24.1×
Peer median forward P/E — closest comparable companies
43.0×
Trailing P/E — price vs the last twelve months of earnings
14.8×
Price / sales

What would change this label: Move to FAIRLY PRICED if the forward P/E falls below about 27.8x (1.15x the current peer median of 24.15x) at unchanged growth, or if revenue growth accelerates above +25% year over year, matching the cluster median, at the current multiple. Move further toward a stronger OVERVALUED call if the forward P/E expands above about 31.4x (1.30x the peer median) without revenue growth reaching +25% year over year.

In simple words

KLA makes the inspection machines that check chips for defects while they are being made. Its sales grew about 15% over the past year — good, but slower than similar companies, whose sales grew about 25%. Despite that, its shares cost about 29 times expected profits, more than those rivals at about 24 times. You are paying a premium price without getting premium growth, so the shares look overvalued.

Words we use, in plain English: P/E ratio — the share price divided by earnings per share; how many dollars you pay for one dollar of yearly profit. Forward P/E — the same, using next year’s expected earnings. Free cash flow — cash a company has left after running the business and buying equipment. TTM — the last twelve months. Drawdown — the worst fall from a peak to the low after it.
Figure 1 — The share price vs the market — six years
KLA (KLAC)S&P 500 (SPY)
-14376767115715482021202220232024202520262020-09-012026-10-27

Both lines start at 100 on 2020-09-01. Over the full window KLA returned +638.93% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for KLA: -51.7% (2026-06-30 to 2026-10-23). Source: Nasdaq official daily history.

What the label rests on

Forward P/E is 28.76x against a peer median of 24.15x, a ratio of 1.19x — above the 1.15x overvalued threshold — with a trailing P/E of 42.95x and a price/sales ratio of 14.77x, the richest in this equipment group. The premium is not paid for by superior growth: latest-quarter revenue growth was +15.2% year over year (PRIMARY/EDGAR), below both Applied Materials' +24.8% in the same brief set and the cluster median of +24.8%, and the PEG ratio of 1.39 is higher than AMAT's 0.73. Delivered demand check: the cluster's median revenue growth was +24.8% year over year — demand rising, but KLA is growing more slowly than that median while charging more for its earnings. The company’s forward P/E is 28.8× against a peer median of 24.1×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Semiconductor equipment & materials group's median latest-quarter revenue growth was +24.8% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +15.2% versus a year earlier (SEC filings).

Table 1
CompanyPrice (Oct 28, 2026)Forward P/ETrailing P/E
KLA (KLAC)$157.2128.8×43.0×
LRCX$248.3024.1×37.0×
AMAT$405.7823.0×35.0×
TER$323.6831.2×37.1×
Q$118.75——
Peer median24.1×

Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.

Sales, profit and cash

Figure 2 — Sales and profit each quarter
SalesNet income (profit)
$0B$1B$3B$4BSep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025Jun 2026

This company does not report a gross-profit line in its SEC facts (normal for banks, payment networks and some health insurers), so profit is shown as net income instead — gross margin is marked UNVERIFIED-absent rather than estimated.

Figure 3 — Cash left over each quarter (free cash flow)
PositiveNegative
$-1B$0B$1BSep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025Jun 2026

Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.

Table 2
QuarterSalesGross marginNet incomeEPS (GAAP, diluted)Free cash flow
Q/E Jun 2026
2026-06-30
$3.7B—$1.4B—$817M
Q/E Mar 2026
2026-03-31
$3.4B—$1.2B9.12$622M
Q/E Dec 2025
2025-12-31
$3.3B—$1.1B8.68$1.3B
Q/E Sep 2025
2025-09-30
$3.2B—$1.1B8.47$1.1B
Q/E Jun 2025
2025-06-30
$3.2B—$1.2B—$1.1B
Q/E Mar 2025
2025-03-31
$3.1B—$1.1B8.16$990M
Q/E Dec 2024
2024-12-31
$3.1B—$825M6.16$757M
Q/E Sep 2024
2024-09-30
$2.8B—$946M7.01$935M
Q/E Jun 2024
2024-06-30
$2.6B—$836M—$832M
Q/E Mar 2024
2024-03-31
$2.4B—$602M4.43$838M
Q/E Dec 2023
2023-12-31
$2.5B—$583M4.28$545M
Q/E Sep 2023
2023-09-30
$2.4B—$741M5.41$816M

The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.

Earnings: getting better or worse?

Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.

Sep 2022
7.20
Dec 2022
6.89
Mar 2023
5.03
Jun 2023
—
Sep 2023
5.41
Dec 2023
4.28
Mar 2024
4.43
Jun 2024
—
Sep 2024
7.01
Dec 2024
6.16
Mar 2025
8.16
Jun 2025
—
Sep 2025
8.47
Dec 2025
8.68
Mar 2026
9.12
Jun 2026
—

Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.

Key facts

Table 3
ItemValue
Company (legal name in filings)KLA CORP
Chief executiveRichard Wallace (source: https://ir.kla.com/sec-filings/all-sec-filings/content/0001193125-26-397898/0001193125-26-397898.pdf)
SectorTechnology — Semiconductor Materials & Equipment — sells inspection and process-control equipment used to find defects in chip manufacturing
Share price (Oct 28, 2026)$157.21
Market value (market cap)$200.8B — share price times shares outstanding of 1,306,546,783 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest))
Sales, last twelve months$13.6B
Net income, last twelve months$4.8B
Free cash flow, last twelve months$3.8B
Latest reported quarterQ/E Jun 2026 (of 24 quarters in the data pack)
Six-year price return vs S&P 500+638.93% vs +118.28%
Worst peak-to-trough fall-51.7% (2026-06-30 to 2026-10-23)

What we could not verify

  • Gross profit / gross margin: not tagged as a standalone line in this company's EDGAR company facts (common for banks, payment networks and some healthcare payers) — shown as UNVERIFIED-absent; the page charts revenue and net income instead.
  • TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
  • Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
  • Peer set in the brief contains only three peers with multiples (LRCX, AMAT, TER); the fourth listed peer, Q, has null forward and trailing P/E in the brief, so the peer median of 24.15x rests on three priced peers.
  • Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.

The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.

Sources

  • SEC EDGAR submissions — Filing index; company legal name. https://data.sec.gov/submissions/CIK0000319201.json
  • SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares. https://data.sec.gov/api/xbrl/companyfacts/CIK0000319201.json
  • Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates. https://api.nasdaq.com/api/quote/KLAC/historical?assetclass=stocks
  • Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.

Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.

Filed under: Stock X-Ray · Technology · KLAC