KLA Corp (KLAC) WACC Analysis

As of May 23, 2025, KLA Corp (KLAC) carries a Weighted Average Cost of Capital (WACC) of 9.9%. WACC reflects the blended rate KLA Corp must pay to both equity and debt holders.

Within that, the cost of equity is 8.7%, the cost of debt is 4.2%, and the effective tax rate is 9.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.05 – 1.25
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.06

What It Means for Investors

With a selected WACC of 9.9%, KLA Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.