Intrinsic value of KLA-Tencor - KLAC

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$97.95

  Intrinsic Value

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  Value-price divergence*

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of KLAC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 15.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.04
  23.50
  21.65
  19.99
  18.49
  17.14
  15.92
  14.83
  13.85
  12.96
  12.17
  11.45
  10.81
  10.22
  9.70
  9.23
  8.81
  8.43
  8.09
  7.78
  7.50
  7.25
  7.02
  6.82
  6.64
  6.48
  6.33
  6.20
  6.08
  5.97
  5.87
Revenue, $m
  2,984
  3,685
  4,483
  5,379
  6,373
  7,466
  8,655
  9,938
  11,314
  12,781
  14,336
  15,978
  17,704
  19,515
  21,408
  23,385
  25,444
  27,589
  29,820
  32,139
  34,549
  37,053
  39,656
  42,361
  45,174
  48,099
  51,143
  54,311
  57,611
  61,049
  64,634
Variable operating expenses, $m
 
  2,985
  3,623
  4,341
  5,137
  6,012
  6,964
  7,992
  9,094
  10,268
  11,514
  12,795
  14,177
  15,627
  17,143
  18,726
  20,375
  22,093
  23,879
  25,736
  27,666
  29,671
  31,755
  33,922
  36,174
  38,516
  40,954
  43,491
  46,133
  48,887
  51,757
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,024
  2,985
  3,623
  4,341
  5,137
  6,012
  6,964
  7,992
  9,094
  10,268
  11,514
  12,795
  14,177
  15,627
  17,143
  18,726
  20,375
  22,093
  23,879
  25,736
  27,666
  29,671
  31,755
  33,922
  36,174
  38,516
  40,954
  43,491
  46,133
  48,887
  51,757
Operating income, $m
  960
  701
  860
  1,038
  1,236
  1,454
  1,691
  1,946
  2,221
  2,513
  2,823
  3,183
  3,527
  3,888
  4,265
  4,659
  5,069
  5,496
  5,941
  6,403
  6,883
  7,382
  7,901
  8,439
  9,000
  9,583
  10,189
  10,820
  11,478
  12,163
  12,877
EBITDA, $m
  1,027
  774
  941
  1,129
  1,338
  1,568
  1,817
  2,087
  2,376
  2,684
  3,010
  3,355
  3,717
  4,097
  4,495
  4,910
  5,342
  5,793
  6,261
  6,748
  7,254
  7,780
  8,326
  8,894
  9,485
  10,099
  10,738
  11,403
  12,096
  12,818
  13,571
Interest expense (income), $m
  120
  116
  58
  81
  106
  134
  165
  199
  235
  274
  316
  360
  406
  455
  506
  560
  616
  674
  735
  798
  864
  932
  1,003
  1,077
  1,153
  1,233
  1,316
  1,402
  1,491
  1,585
  1,682
Earnings before tax, $m
  858
  584
  801
  957
  1,130
  1,320
  1,526
  1,748
  1,985
  2,239
  2,507
  2,824
  3,121
  3,433
  3,759
  4,099
  4,453
  4,822
  5,206
  5,605
  6,019
  6,450
  6,898
  7,363
  7,847
  8,350
  8,873
  9,419
  9,986
  10,578
  11,195
Tax expense, $m
  154
  158
  216
  258
  305
  356
  412
  472
  536
  604
  677
  762
  843
  927
  1,015
  1,107
  1,202
  1,302
  1,406
  1,513
  1,625
  1,742
  1,862
  1,988
  2,119
  2,254
  2,396
  2,543
  2,696
  2,856
  3,023
Net income, $m
  704
  427
  585
  699
  825
  963
  1,114
  1,276
  1,449
  1,634
  1,830
  2,061
  2,278
  2,506
  2,744
  2,992
  3,251
  3,520
  3,800
  4,092
  4,394
  4,709
  5,035
  5,375
  5,728
  6,095
  6,478
  6,876
  7,290
  7,722
  8,172

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,492
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,962
  3,051
  3,711
  4,453
  5,276
  6,180
  7,164
  8,227
  9,366
  10,580
  11,868
  13,227
  14,656
  16,155
  17,722
  19,358
  21,063
  22,839
  24,685
  26,605
  28,600
  30,673
  32,828
  35,067
  37,396
  39,817
  42,337
  44,960
  47,691
  50,538
  53,505
Adjusted assets (=assets-cash), $m
  2,470
  3,051
  3,711
  4,453
  5,276
  6,180
  7,164
  8,227
  9,366
  10,580
  11,868
  13,227
  14,656
  16,155
  17,722
  19,358
  21,063
  22,839
  24,685
  26,605
  28,600
  30,673
  32,828
  35,067
  37,396
  39,817
  42,337
  44,960
  47,691
  50,538
  53,505
Revenue / Adjusted assets
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
  1.208
Average production assets, $m
  304
  376
  457
  549
  650
  762
  883
  1,014
  1,154
  1,304
  1,462
  1,630
  1,806
  1,990
  2,184
  2,385
  2,595
  2,814
  3,042
  3,278
  3,524
  3,779
  4,045
  4,321
  4,608
  4,906
  5,217
  5,540
  5,876
  6,227
  6,593
Working capital, $m
  2,866
  461
  560
  672
  797
  933
  1,082
  1,242
  1,414
  1,598
  1,792
  1,997
  2,213
  2,439
  2,676
  2,923
  3,181
  3,449
  3,727
  4,017
  4,319
  4,632
  4,957
  5,295
  5,647
  6,012
  6,393
  6,789
  7,201
  7,631
  8,079
Total debt, $m
  3,058
  1,531
  2,125
  2,793
  3,533
  4,347
  5,233
  6,189
  7,215
  8,307
  9,466
  10,689
  11,975
  13,324
  14,735
  16,207
  17,742
  19,340
  21,002
  22,729
  24,525
  26,391
  28,330
  30,345
  32,441
  34,620
  36,888
  39,249
  41,707
  44,269
  46,939
Total liabilities, $m
  4,273
  2,746
  3,340
  4,008
  4,748
  5,562
  6,448
  7,404
  8,430
  9,522
  10,681
  11,904
  13,190
  14,539
  15,950
  17,422
  18,957
  20,555
  22,217
  23,944
  25,740
  27,606
  29,545
  31,560
  33,656
  35,835
  38,103
  40,464
  42,922
  45,484
  48,154
Total equity, $m
  689
  305
  371
  445
  528
  618
  716
  823
  937
  1,058
  1,187
  1,323
  1,466
  1,615
  1,772
  1,936
  2,106
  2,284
  2,469
  2,660
  2,860
  3,067
  3,283
  3,507
  3,740
  3,982
  4,234
  4,496
  4,769
  5,054
  5,350
Total liabilities and equity, $m
  4,962
  3,051
  3,711
  4,453
  5,276
  6,180
  7,164
  8,227
  9,367
  10,580
  11,868
  13,227
  14,656
  16,154
  17,722
  19,358
  21,063
  22,839
  24,686
  26,604
  28,600
  30,673
  32,828
  35,067
  37,396
  39,817
  42,337
  44,960
  47,691
  50,538
  53,504
Debt-to-equity ratio
  4.438
  5.020
  5.730
  6.270
  6.700
  7.030
  7.300
  7.520
  7.700
  7.850
  7.980
  8.080
  8.170
  8.250
  8.310
  8.370
  8.420
  8.470
  8.510
  8.540
  8.580
  8.600
  8.630
  8.650
  8.680
  8.690
  8.710
  8.730
  8.750
  8.760
  8.770
Adjusted equity ratio
  -0.730
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  704
  427
  585
  699
  825
  963
  1,114
  1,276
  1,449
  1,634
  1,830
  2,061
  2,278
  2,506
  2,744
  2,992
  3,251
  3,520
  3,800
  4,092
  4,394
  4,709
  5,035
  5,375
  5,728
  6,095
  6,478
  6,876
  7,290
  7,722
  8,172
Depreciation, amort., depletion, $m
  67
  73
  82
  91
  102
  114
  126
  140
  155
  171
  187
  172
  190
  210
  230
  251
  273
  296
  320
  345
  371
  398
  426
  455
  485
  516
  549
  583
  619
  655
  694
Funds from operations, $m
  700
  500
  667
  790
  927
  1,077
  1,240
  1,416
  1,604
  1,805
  2,018
  2,233
  2,468
  2,715
  2,974
  3,243
  3,524
  3,816
  4,121
  4,437
  4,765
  5,106
  5,461
  5,830
  6,213
  6,612
  7,027
  7,459
  7,909
  8,377
  8,866
Change in working capital, $m
  -60
  88
  100
  112
  124
  137
  149
  160
  172
  183
  194
  205
  216
  226
  237
  247
  257
  268
  279
  290
  301
  313
  325
  338
  352
  366
  380
  396
  412
  430
  448
Cash from operations, $m
  760
  390
  567
  678
  803
  940
  1,091
  1,255
  1,432
  1,622
  1,823
  2,028
  2,253
  2,489
  2,737
  2,996
  3,267
  3,548
  3,842
  4,147
  4,464
  4,793
  5,136
  5,492
  5,862
  6,246
  6,646
  7,063
  7,496
  7,947
  8,418
Maintenance CAPEX, $m
  0
  -32
  -40
  -48
  -58
  -68
  -80
  -93
  -107
  -121
  -137
  -154
  -172
  -190
  -210
  -230
  -251
  -273
  -296
  -320
  -345
  -371
  -398
  -426
  -455
  -485
  -516
  -549
  -583
  -619
  -655
New CAPEX, $m
  -32
  -72
  -81
  -91
  -101
  -111
  -121
  -131
  -140
  -150
  -159
  -167
  -176
  -185
  -193
  -202
  -210
  -219
  -228
  -237
  -246
  -255
  -265
  -276
  -287
  -298
  -310
  -323
  -337
  -351
  -366
Cash from investing activities, $m
  145
  -104
  -121
  -139
  -159
  -179
  -201
  -224
  -247
  -271
  -296
  -321
  -348
  -375
  -403
  -432
  -461
  -492
  -524
  -557
  -591
  -626
  -663
  -702
  -742
  -783
  -826
  -872
  -920
  -970
  -1,021
Free cash flow, $m
  905
  286
  446
  539
  643
  761
  890
  1,032
  1,185
  1,351
  1,527
  1,706
  1,905
  2,114
  2,334
  2,565
  2,805
  3,056
  3,318
  3,590
  3,873
  4,167
  4,472
  4,790
  5,120
  5,463
  5,819
  6,190
  6,576
  6,978
  7,397
Issuance/(repayment) of debt, $m
  -135
  -1,527
  594
  668
  741
  814
  886
  956
  1,025
  1,093
  1,159
  1,223
  1,286
  1,349
  1,411
  1,473
  1,535
  1,598
  1,662
  1,728
  1,796
  1,866
  1,939
  2,016
  2,096
  2,179
  2,268
  2,361
  2,458
  2,562
  2,671
Issuance/(repurchase) of shares, $m
  -143
  857
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -291
  -670
  594
  668
  741
  814
  886
  956
  1,025
  1,093
  1,159
  1,223
  1,286
  1,349
  1,411
  1,473
  1,535
  1,598
  1,662
  1,728
  1,796
  1,866
  1,939
  2,016
  2,096
  2,179
  2,268
  2,361
  2,458
  2,562
  2,671
Total cash flow (excl. dividends), $m
  616
  -1,241
  1,040
  1,206
  1,384
  1,574
  1,776
  1,988
  2,211
  2,443
  2,686
  2,929
  3,191
  3,463
  3,745
  4,037
  4,340
  4,654
  4,980
  5,318
  5,668
  6,033
  6,412
  6,805
  7,215
  7,642
  8,087
  8,551
  9,035
  9,540
  10,067
Retained Cash Flow (-), $m
  -268
  -2,108
  -66
  -74
  -82
  -90
  -98
  -106
  -114
  -121
  -129
  -136
  -143
  -150
  -157
  -164
  -171
  -178
  -185
  -192
  -200
  -207
  -215
  -224
  -233
  -242
  -252
  -262
  -273
  -285
  -297
Prev. year cash balance distribution, $m
 
  2,492
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  0
  974
  1,132
  1,302
  1,484
  1,677
  1,882
  2,097
  2,322
  2,557
  2,793
  3,048
  3,313
  3,588
  3,874
  4,170
  4,477
  4,795
  5,126
  5,469
  5,825
  6,196
  6,581
  6,982
  7,400
  7,835
  8,289
  8,762
  9,255
  9,771
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  0
  892
  985
  1,072
  1,150
  1,217
  1,271
  1,310
  1,334
  1,341
  1,326
  1,301
  1,260
  1,205
  1,137
  1,060
  974
  883
  789
  695
  603
  514
  431
  356
  288
  229
  178
  136
  101
  74
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions worldwide. It offers chip manufacturing products, such as front-end defect inspection tools, defect review systems, advanced packaging process control systems, metrology solutions, in-situ process monitoring products, and lithography software; wafer manufacturing products comprising surface and defect inspection, wafer geometry and nanotopography metrology, and data management; and reticle manufacturing products, such as defect inspection and pattern placement metrology products. The company also provides light emitting diode (LED), power device, and compound semiconductor manufacturing products consisting of patterned wafer inspection, defect inspection, surface metrology, and data management products; thin-film head metrology and inspection, virtual lithography, in-situ process monitoring, transparent and metal substrate inspection, and data management products for data storage media/head manufacturing; and stylus and optical profiling, and optical inspection products for microelectromechanical systems manufacturing, as well as products for general purpose/lab applications. It offers its products and services for bare wafer, IC, lithography reticle, and disk manufacturers. The company serves semiconductor and related nanoelectronics, LED, and data storage industries, as well as general materials research industries. KLA-Tencor Corporation was founded in 1975 and is headquartered in Milpitas, California.

FINANCIAL RATIOS  of  KLA-Tencor (KLAC)

Valuation Ratios
P/E Ratio 21.7
Price to Sales 5.1
Price to Book 22.2
Price to Tangible Book
Price to Cash Flow 20.1
Price to Free Cash Flow 21
Growth Rates
Sales Growth Rate 6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -30.4%
Cap. Spend. - 3 Yr. Gr. Rate -15.7%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 443.8%
Total Debt to Equity 443.8%
Interest Coverage 8
Management Effectiveness
Return On Assets 16.4%
Ret/ On Assets - 3 Yr. Avg. 12.2%
Return On Total Capital 19.1%
Ret/ On T. Cap. - 3 Yr. Avg. 13.9%
Return On Equity 126.8%
Return On Equity - 3 Yr. Avg. 53.7%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 61.1%
Gross Margin - 3 Yr. Avg. 58.7%
EBITDA Margin 35%
EBITDA Margin - 3 Yr. Avg. 28.8%
Operating Margin 32.2%
Oper. Margin - 3 Yr. Avg. 25.8%
Pre-Tax Margin 28.8%
Pre-Tax Margin - 3 Yr. Avg. 23.1%
Net Profit Margin 23.6%
Net Profit Margin - 3 Yr. Avg. 18.8%
Effective Tax Rate 17.9%
Eff/ Tax Rate - 3 Yr. Avg. 18.1%
Payout Ratio 49.1%

KLAC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KLAC stock intrinsic value calculation we used $2984 million for the last fiscal year's total revenue generated by KLA-Tencor. The default revenue input number comes from 2016 income statement of KLA-Tencor. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our KLAC stock valuation model: a) initial revenue growth rate of 23.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for KLAC is calculated based on our internal credit rating of KLA-Tencor, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of KLA-Tencor.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of KLAC stock the variable cost ratio is equal to 81.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for KLAC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.8% for KLA-Tencor.

Corporate tax rate of 27% is the nominal tax rate for KLA-Tencor. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the KLAC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for KLAC are equal to 10.2%.

Life of production assets of 9.5 years is the average useful life of capital assets used in KLA-Tencor operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for KLAC is equal to 12.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $689 million for KLA-Tencor - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 156.605 million for KLA-Tencor is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of KLA-Tencor at the current share price and the inputted number of shares is $15.3 billion.


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Stock chart of KLAC Financial statements of KLAC Annual reports of KLAC
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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