Investors are currently paying 47.7 times trailing twelve-month earnings for shares of KLA (KLAC). That figure relies on a measure of adjusted earnings that adds back stock-based compensation after tax. While that represents a steep price for one year of profit, the picture shifts when measured against estimates for the next two years. So how much are you really paying for each dollar of the profit still ahead?

KLA’s Multiple On Estimated Net Income

Consensus forecasts project KLA will earn $7.2 billion in fiscal 2027, which ends in June 2027. At today’s share price, the stock trades at 33.7 times that profit. The forecast rises to $8.7 billion for fiscal 2028, pulling the valuation multiple down to 27.6. By…