Is KLA Corp. overvalued or undervalued?

As of 17 October 2025, KLA Corp. has moved from an expensive to an attractive valuation grade. The company appears to be undervalued, particularly given its strong performance metrics. Key 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 is priced favorably relative to its growth prospects.
In comparison to peers, KLA Corp. has a higher P/E ratio than Emerson Electric Co., which stands at 48.44, and a lower EV to EBITDA ratio than its own at 42.17. The company's impressive ROE of 101.85% and ROCE of 82.15% further support its attractive valuation. 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 notion that the stock is currently undervalued.