Khadija Saeed

January 26, 2026, 9:53 PM EST. KLA Corp (KLAC) has surged 121.5% over the past year, closing recently at $1,543.03 despite a 1.6% weekly decline. Despite its strong returns and semiconductor sector role, valuation checks flag concerns. Simply Wall St's discounted cash flow (DCF) model, which discounts future projected cash flows to present value, estimates an intrinsic value of $619.73 per share, suggesting the stock is overvalued by 149%. Additionally, KLA's price-to-earnings (P/E) ratio stands at 47.9 times, aligning broadly with sector peers but reflecting high growth expectations. Investors are advised to weigh these valuation metrics carefully alongside past performance before considering new positions in KLA.