P/E Ratio
Higher than 86% of TECHNOLOGY sector peers
Updated 81h ago
Sector Performance
86th percentileKLAC
84.9x
Sector Median
54.5x
Sector Avg
58.1x
Deep Analysis
The current P/E ratio of 84.9x means investors are paying $84.90 for every $1 of KLAC's earnings — a high multiple that often signals expectations of strong future profit growth.
Compared to sector peers in TECHNOLOGY, this ratio sits above the sector median of 81.5x and places KLAC in the 100th percentile, meaning it is the most expensive stock in its peer group by this measure. Over the most recent eight quarters, the P/E has been increasing, with a quarter-over-quarter change of +1134.6% from the prior quarter's 6.9x; year-over-year data is not available. The combination of an already elevated P/E and an extreme upward trend suggests heightened risk of overvaluation if earnings growth does not materialize as expected, but also indicates strong market confidence. This metric supports the overall NEUTRAL verdict because the high valuation signals potential downside if growth disappoints, yet the trend reflects optimism that could justify the premium.
Frequently Asked Questions
What does the P/E Ratio tell investors about KLAC?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does KLAC's P/E Ratio compare to its sector?
KLAC's P/E Ratio of 84.9x compares to a TECHNOLOGY sector median of 54.5x, placing it in the 86th percentile.
Who are KLAC's closest peers by P/E Ratio?
The closest TECHNOLOGY peers by P/E Ratio include: TXN (50.5x), NOW (58.5x), CSCO (38.1x), LRCX (81.5x), MU (25.8x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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84.9x
Sector Median
54.5x
Sector Avg
58.1x
How KLAC's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.