KLA Corporation DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.02%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.62%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 5%

Last 24 Months Beta: 1.93

Historical Data

Revenue growth in the last 10 years (CAGR): 14.77%

Earnings growth in the last 10 years (CAGR): 19.15%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 13.29%

Future Assumptions

End of Year FCF growth: 15%

Growth until end of 2026: 12%

Growth until end of 2034: 10%

Perpetual growth: 3.2%

Net Debt: 0.902B

Outstanding Stock Options Present Value Assumption: $0B

Restricted Stock Units Present Value Assumption: $14.073B

Stock Valuation based on these assumptions: $924

Last update 03/20/2026

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in KLA Corporation (KLAC) and I don’t plan to add a position in the coming days.