Discounted Cash Flow

KLA Corp.

KLAC · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $3.5b $926.1m $1.0b 26.6% $0.59
2018 $4.0b (16.0%) $802.3m (-13.4%) $1.2b (11.6%) 19.9% (-25.3%) $0.51 (-13.3%)
2019 $4.6b (13.2%) $1.2b (46.5%) $1.0b (-12.0%) 25.7% (29.5%) $0.75 (46.8%)
2020 $5.8b (27.1%) $1.2b (3.5%) $1.6b (59.1%) 21.0% (-18.6%) $0.78 (3.1%)
2021 $6.9b (19.2%) $2.1b (70.8%) $2.0b (20.1%) 30.0% (43.3%) $1.35 (73.8%)
2022 $9.2b (33.1%) $3.3b (59.8%) $3.0b (53.9%) 36.1% (20.0%) $2.21 (63.6%)
2023 $10.5b (13.9%) $3.4b (2.0%) $3.3b (10.7%) 32.3% (-10.5%) $2.43 (10.0%)
2024 $9.8b (-6.5%) $2.8b (-18.5%) $3.0b (-8.9%) 28.1% (-12.8%) $2.04 (-15.9%)
2025 $12.2b (23.9%) $4.1b (47.1%) $3.7b (23.6%) 33.4% (18.7%) $3.05 (49.6%)
2026 $13.6b (11.7%) $4.8b (18.9%) $3.8b (0.5%) 35.6% (6.5%) $3.68 (20.5%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model