KLAC FCF Yield Analysis
Higher than 55% of TECHNOLOGY sector peers
Updated 5h ago·SEC filings & market data
Key Takeaway
The current FCF yield of 1.3% means for every $100 of market value, the company generated roughly $1.30 in free cash flow—the cash left after operating expenses and capital spending.
Sector Performance
55th percentileKLAC
1.3%
Sector Median
1.3%
Sector Avg
2.3%
Prior Period
1.2%(Jul 2026)
Deep Analysis
The current FCF yield of 1.3% means for every $100 of market value, the company generated roughly $1.30 in free cash flow—the cash left after operating expenses and capital spending.
This sits just below the sector median of 1.4%, placing KLAC at the 45th percentile among technology peers. The trend is largely N/A: the year-over-year change is not available, and the 8-quarter trend direction is also N/A; however, quarter-over-quarter FCF yield improved by +8.3%, rising from 1.2% to 1.3% in the most recent period. The level near the sector median combined with only a single quarter of improvement suggests limited risk but also no clear catalyst for above-average cash generation. This metric supports the overall NEUTRAL verdict, as the FCF yield aligns closely with peers and the recent uptick is too narrow to change the outlook.
Frequently Asked Questions
What does the FCF Yield tell investors about KLAC?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does KLAC's FCF Yield compare to its sector?
KLAC's FCF Yield of 1.3% compares to a TECHNOLOGY sector median of 1.3%, placing it in the 55th percentile.
Who are KLAC's closest peers by FCF Yield?
The closest TECHNOLOGY peers by FCF Yield include: LRCX (1.2%), HPE (1.0%), TXN (1.0%), MRVL (0.6%), CSCO (3.0%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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1.3%
Sector Median
1.3%
Sector Avg
2.3%
How KLAC's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.