KLAKLAC -4.93%86 Interest Coverage is 19.99 as of Mar. 2026, which is 59% above its 10-year median of 12.57. GuruFocus rates KLAC with a GF Score™ of 86/100 and a GF Value™ of $99.94 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 638 Semiconductors companies, KLA ranks worse than 51.57% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. KLA's
Operating Income
for the
three
months ended in Mar. 2026 was $1,408 Mil. KLA's Interest Expense for the
three
months ended in Mar. 2026 was $-70 Mil.
KLA's interest coverage for the quarter that ended in Mar. 2026 was 19.99.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for KLA's Interest Coverage or its related term are showing as below:
KLAC'
s Interest Coverage Range Over the Past 10 Years
Min: 7.82 Med: 12.57 Max: 22.79
Current: 19.2
KLAC's Interest Coverage is ranked worse than 51.57% of 638
companies
in the Semiconductors industry
Industry Median: 20.225
vs KLAC: 19.20
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
KLA Interest Coverage Related Terms
KLA Interest Coverage Historical Data
* Premium members only.
The historical data trend for KLA's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
KLAC vs AMAT, LRCX, TER: Interest Coverage Comparison
For the Semiconductor Equipment & Materials subindustry, KLA's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
KLA Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, KLA's Interest Coverage distribution charts can be found below:
* The bar in red indicates where KLA's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KLA (KLAC) has a Interest Coverage of 19.99 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on KLA and its competitors. This is 59% above median its historical median of 12.57. Over the past decade, KLA's Interest Coverage has ranged from 7.82 to 22.79. According to the industry distribution chart, KLA ranks #329 out of 638 companies in the Semiconductors industry, placing it in the top 51.6%.
Is KLA's Interest Coverage too high?
KLA's current Interest Coverage of 19.99 is 59% above median its 10-year median of 12.57. Over the past 10 years, this metric has ranged from a low of 7.82 to a high of 22.79. The Semiconductors industry median Interest Coverage is 20.23. KLA's value of 19.99 is 1.2% below this industry median. Based on the distribution chart, KLA ranks #329 out of 638 companies in the Semiconductors industry, which is below the industry midpoint. Overall, KLA has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does KLA's Interest Coverage compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, KLA ranks #329 out of 638 companies for Interest Coverage. This places KLA in the lower half of its industry. The industry median Interest Coverage is 20.23. KLA's value of 19.99 is 1.2% below this benchmark. Historically, KLA's own Interest Coverage has ranged from 7.82 to 22.79 over the past decade. While the company's 10-year median is 12.57 vs. the industry median of 20.23, KLA has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KLA's current Interest Coverage of 19.99 is 1.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on KLA and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLA's current Interest Coverage is 19.99, which is 59% above median its own 10-year median of 12.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLA stock overvalued right now?
Based on GuruFocus' analysis, KLA (KLAC) is currently considered Significantly Overvalued. The stock's GF Value™ is $99.94, compared to a current price of $246.05 — trading 146.2% above its estimated fair value. The current Interest Coverage is 19.99, which is 59% above median its 10-year median of 12.57 and 1.2% below the Semiconductors industry median of 20.23. KLA's overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For KLA (KLAC), the current Interest Coverage is 19.99 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is KLA (KLAC) Overvalued in 2026?
Based on GuruFocus' analysis, KLA stock appears to be overvalued.
The current stock price of $246.05 is trading 146.2% above its estimated GF Value™ of $99.94.
GuruFocus considers KLA to be Significantly Overvalued.
Key valuation signals for KLAC:
Interest Coverage: 19.99 (59% above median its 10-year median of 12.57)
GF Value™: $99.94 vs. price of $246.05 (146.2% above fair value)
Industry Position: 1.2% below the Semiconductors median (#329 of 638)
No single metric tells the full story. See the KLAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.
86GF Score
Get the complete analysis for KLAC
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
KLAC has been successfully added to your 
