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KLA Corporation Common Stock (KLAC) — WACC Analysis

WACC Breakdown

KLA Corporation Common Stock (KLAC) has a weighted average cost of capital (WACC) of 11.6%. The cost of equity is 11.8%, derived from a beta of 1.83 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.8%. The capital structure is 97.5% equity and 2.5% debt.

Interpretation

A WACC of 11.6% is moderate, reflecting the market's balanced risk assessment of KLA Corporation Common Stock.

Investors can compare KLAC's WACC of 11.6% against industry peers to gauge its relative financing costs. A beta of 1.83 reflects the stock's volatility relative to the broader market.

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VALUATION

KLAC WACC: 11.57% for KLA Corporation Common Stock

Current inputs imply a 11.76% cost of equity and a 4.83% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

KLA Corporation Common Stock Common Stock (KLAC) WACC Results
Weighted Average Cost of Capital
11.57%
Cost of Equity
11.76%
Risk-Free Rate5.19%
Beta1.83
Market Risk Premium4.23%
Cost of Debt
3.82%
Pre-Tax Cost of Debt4.83%
Tax Rate21.00%
Tax Shield1.01%
Capital Structure
Equity: 97.54%($233.35B)
Debt: 2.46%($5887.41M)
Equity Component
11.47%
97.54% × 11.76%
Debt Component
0.09%
2.46% × 3.82%

KLA Corporation Common Stock (KLAC) WACC in context

KLA Corporation Common Stock (KLAC) currently screens with an estimated WACC of 11.57%. That blends a 11.76% cost of equity, a 4.83% pre-tax cost of debt, and a 97.54% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What KLAC WACC implies

A 11.57% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates KLAC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.83 and equity accounts for 97.54% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.