Is KLA Corp. overvalued or undervalued?

As of 17 October 2025, KLA Corp. has moved from expensive to attractive, indicating a shift in its valuation perspective. The company appears to be undervalued, given its strong performance metrics. Key valuation ratios include a P/E ratio of 51, an EV to EBITDA of 40.07, and a PEG ratio of 1.39, which suggest that the stock may be priced favorably compared to its growth potential.
In comparison to peers, KLA Corp. has a higher P/E ratio than Emerson Electric Co., which stands at 48.44, but its EV to EBITDA is competitive at 42.17. The company's impressive ROE of 101.85% and ROCE of 82.15% further underscore its operational efficiency. Notably, KLA Corp. has significantly outperformed the S&P 500 across multiple time frames, with a YTD return of 75.63% compared to the S&P 500's 13.30%, reinforcing the attractiveness of its current valuation.