Is KLA Corp. overvalued or undervalued?

As of 30 April 2025, KLA Corp. has moved from a fair to very attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 51, a Price to Book Value of 52.03, and an EV to EBITDA of 40.07. In comparison to its peers, Emerson Electric Co. has a P/E of 51.42 and EV to EBITDA of 26.88, while Rockwell Automation, Inc. is deemed expensive with a P/E of 53.81 and an EV to EBITDA of 36.04.
KLA Corp.'s strong financial metrics, including a remarkable ROCE of 82.15% and ROE of 101.85%, further support its undervaluation status. Despite a recent dip in stock performance compared to the S&P 500 over the past week, the company's year-to-date return of 35.89% significantly outpaces the index's 2.44%, reinforcing the attractiveness of its current valuation.