KLA Corp. (NASDAQ:KLAC)

Price to Earnings (P/E) Ratio

The P/E ratio displayed an upward trend starting from 18.44 in September 2018, reaching a peak of 33.15 by December 2020. Following this peak, there was a general decline, dropping to a low of 13.89 in June 2022. However, the ratio surged again afterward, climbing to 36.43 by December 2023 before a slight decrease to 24.2 by the end of the available data in March 2025. This pattern indicates fluctuating market valuation relative to earnings, with notable volatility particularly in late 2020 and 2023.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio tracked a somewhat similar pattern as the P/E ratio, starting around 15.6 in September 2018 and rising steadily to 26.27 by December 2020. After this peak, the ratio experienced a significant decline to 11.55 in June 2022, followed by a rebound to nearly 30 by the end of 2023. Toward the latest periods, the ratio again tapered off, finishing at 20.32 by March 2025. This suggests variability in pricing relative to operating profit margins, mirroring investor sentiment and operating profitability trends over time.

Price to Sales (P/S) Ratio

The P/S ratio showed a general increasing trajectory from 4.74 in September 2018 to a high point of 9.91 in December 2023. There were minor fluctuations throughout the timeframe, including a dip to 4.53 in June 2019 and again to 4.62 in June 2022, but the overall trend reflected an increase in valuation relative to sales. The ratio slightly declined to 7.74 by the end of the presented period in March 2025, demonstrating somewhat compressed sales valuation in the most recent quarters.

Price to Book Value (P/BV) Ratio

The P/BV ratio fluctuated considerably over the period. Initial figures ranged from 6.5 to about 15.98 through 2021, before an abrupt and substantial jump to 40.05 in June 2022. Following this spike, the ratio decreased to around 19.77–21.67 in the subsequent quarters, then increased again to exceed 30 in late 2023, finally settling near 22.33 by March 2025. This volatility is indicative of significant changes in market perception of the company's net asset value or shifts in book value itself during this timeframe. The pronounced spikes suggest possible extraordinary events affecting equity valuation.

The share price of the company exhibited an overall upward trend from September 2018 through March 2025, with notable fluctuations throughout the period. Beginning at $91.54 in late 2018, the share price experienced a steady increase, reaching above $300 by early 2021. After hitting a peak around mid-2021 near $366, the price showed some volatility, declining to approximately $319 in March 2022 then rebounding sharply to nearly $496 by mid-2023. Subsequent quarters saw the price fluctuating between the mid-$400s and $700s, ultimately ending near $676 in the first quarter of 2025. This pattern suggests strong market performance tempered by periodic volatility.

Earnings per share (EPS) data available from March 2019 onwards demonstrated a consistent upward trajectory with some variations. Starting at $7.38, EPS gradually increased over time, reaching $25.57 in late 2022 before experiencing a slight dip in 2023. However, it recovered again to hit $27.94 by the end of the observed period in March 2025. The progressive increase in EPS indicates improving profitability and operational efficiency over the analyzed quarters.

The price-to-earnings (P/E) ratio showed significant fluctuations consistent with changes in share price and earnings. Early ratios ranged from around 18 to 25, with a peak P/E of 33.15 observed in December 2020. After this peak, the P/E ratio generally declined to values around 15 by mid-2022, reflecting the faster growth in earnings relative to price appreciation during that phase. Subsequently, from late 2022 through mid-2024, the P/E ratio increased again, reaching a high near 36.43 by the end of 2023, before settling back to the mid-20s by the first quarter of 2025. This variability in the P/E ratio suggests changing investor sentiment, with periods emphasizing either stock price growth or underlying earnings performance.

In summary, the company demonstrated strong share price appreciation accompanied by steady gains in earnings per share over multiple years. The P/E ratio's fluctuating pattern aligns with market responses to these shifts, reflecting episodic adjustments in valuation levels. The data indicate a generally positive financial performance, although marked by occasional volatility in market pricing and valuation metrics.

The share price exhibits a generally upward trajectory over the observed periods, with fluctuations indicating phases of volatility. Initially valued at $91.54, the price increases steadily, reaching notable peaks such as $294.23 by December 2020 and climbing further to $706.26 by March 2024. Despite occasional declines, such as in September 2021 and September 2022, the overall trend is markedly positive, highlighting substantial appreciation in market valuation across the timeframe.

Operating profit per share, available from March 2019 onward, indicates a consistent improvement in profitability on a per-share basis. The value starts at $8.72 and demonstrates a strong upward trend, peaking at $33.28 by March 2025. The progression reflects enhanced operational efficiency or revenue growth, bolstering earnings generated per share over the given periods.

The Price to Operating Profit (P/OP) ratio, which measures the market valuation relative to operating profit per share, shows variability throughout the timeline. Early observations indicate ratios around 15.6 to 20.99, with a significant spike to 26.27 in December 2020. Post this peak, the ratio experiences fluctuations, reaching a high of 29.78 by December 2023 before falling to 20.32 by June 2024. Such changes suggest shifts in market expectations and investor sentiment relative to the company's profitability, reflecting periods where the share price growth outpaced or lagged behind the operating profit improvements.

Overall, the data reveals strong growth in both share price and operating profit per share, with the P/OP ratio reflecting variable market perceptions of value relative to profitability. The pronounced rise in share price and operating profit per share indicates robust performance, though the fluctuating P/OP ratio advises caution in interpreting market valuation purely through profit metrics.

Share Price Trend

The share price of the company demonstrated a predominantly upward trajectory from September 2018 to June 2024. Initially priced at $91.54, it rose steadily to exceed $300 by the end of 2020. Notable growth periods include late 2020 through 2021, reaching peaks above $350. Volatility is observed in mid-2022 with a dip around $321, followed by recovery and further increases into 2023 and early 2024, with the share price reaching highs above $700 in late 2023. The data shows some fluctuations but an overall strong upward momentum over the observed quarters.

Sales Per Share Trend

Sales per share data begins in March 2019 with a value of $28.69 and generally exhibits a consistent upward trend through to early 2025. The values increase each quarter until reaching a peak above $87 by March 2025. This steady rise indicates continuous growth in sales on a per-share basis, suggesting improvements in operational performance or revenue generation relative to shares outstanding over time.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio exhibits fluctuating patterns throughout the period but generally indicates elevated valuation multiples later in the dataset. Early data in late 2019 sees ratios near 4.5 to 5.5, which then rise and hover around 7 to 8 through mid-2021. Subsequently, there is a noticeable dip to below 5 in mid-2022, followed by a recovery and increase reaching near 10 in late 2023. The elevated P/S ratios in recent quarters suggest the market assigns higher value relative to sales, reflecting increased investor optimism or growth expectations despite some volatility.

Overall Observations

The combined analysis of these metrics reveals sustained shareholder value appreciation paired with growing sales per share, underpinning operational growth. The fluctuations in P/S ratio imply varying market sentiment and valuation adjustments over time. The upward movement in both share price and sales per share indicates strengthening financial fundamentals, while elevated P/S ratios toward the latter part of the timeline reflect strong investor confidence and potentially premium market valuations.

The share price demonstrates a general upward trend over the examined periods, with some fluctuations. Initially, the price increased steadily from approximately $91.54 in late 2018 to a peak near $366.65 at the end of 2021. This was followed by a short-term decline around mid-2022, falling to approximately $321.50, before resuming its upward trajectory and reaching new highs near $706.26 by the end of 2023. The price exhibits pronounced volatility, with notable peaks and troughs, especially evident in the later periods.

Book value per share (BVPS) shows a gradual increase over time with intermittent declines. Starting near $10.24 in late 2018, BVPS rose steadily, peaking at approximately $27.34 in early 2022. However, an unusual sharp decline is observed around mid-2022, dropping to roughly $9.88, before recovering over subsequent periods to exceed $30.28 by early 2025. This fluctuation indicates significant variability in net asset growth or valuation adjustments during the middle of the timeline, followed by a recovery trend.

The price-to-book value (P/BV) ratio reveals notable volatility and generally elevated multiples. Initially, the ratio hovered between approximately 6.5 and 11.83 through 2018 into early 2020, signaling moderate valuation levels relative to book value. From late 2020 onward, the P/BV ratio escalates substantially, peaking sharply at over 40 by mid-2022, coinciding with the depressed book value during that period. After this peak, the ratio moderates but remains high, fluctuating between about 20 and 30 through 2023 and into early 2025. This dynamic suggests sustained market optimism or premium valuation relative to underlying book value, with exceptional disparities during mid-2022 likely driven by the temporary contraction in book value per share.

Overall, the financial data indicates a strong appreciation of market valuation as reflected in share price gains throughout the period. The book value per share’s general upward trend supports incremental asset growth, albeit interrupted by a significant temporary decline. The elevated and highly variable P/BV ratio underscores periods of pronounced market valuation premiums, influenced by fluctuations in both market price and book value. These patterns suggest that market perceptions and company fundamentals have not always moved in tandem, pointing to episodic divergences possibly caused by external market factors or internal corporate developments affecting asset valuations.