KLA Corp (KLAC) is overvalued and Lam Research Corp (LRCX) is overvalued.
Both trade above our estimate of their intrinsic value. LRCX is the closer of the two: -57%, against -77% for KLAC.
Values as of the 22 Sept 2026 close.
A 10.6x revenue multiple, adjusted for growth and margin, values the shares at $106.46; the price of $188.32 is 77% above that value.
Leak Score 57/100 on 8 of 12 signals
A 10.6x revenue multiple, adjusted for growth and margin, values the shares at $197.54; the price of $310.96 is 57% above that value.
Leak Score 65/100 on 10 of 12 signals
| Metric | KLAC | LRCX |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $188.32 | $310.96 |
| Intrinsic value | $106.46 | $197.54 |
| Margin of safety | -77% | -57% |
| Leak Score | 57/100 (8/12) | 65/100 (10/12) |
| Market cap | $246.0B | $389.1B |
| Revenue growth, 5 years | 14.4% | 9.7% |
| Operating margin | 41.7% | 35.3% |
| Net margin | 35.6% | 31.3% |
| Return on equity | 87.5% | 65.1% |
| Debt to equity | 0.97 | 0.33 |
| P/E | 51.4x | 54.0x |
| Forward P/E | 27.9x | 26.2x |
| P/B | 38.8x | 31.2x |
| Dividend yield | 0.5% | 0.4% |