KLAXSWX:KLAC 86 Return-on-Tangible-Equity is 135.93% as of Mar. 2026, which is 54% below its 10-year median of 295.56. GuruFocus rates XSWX:KLAC with a GF Score™ of 86/100 and a GF Value™ of CHF82.37. The stock has 6 warning signs investors should review. Among 985 Semiconductors companies, KLA ranks better than 98.27% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. KLA's annualized net income for the quarter that ended in Mar. 2026 was CHF4,804 Mil. KLA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF3,534 Mil. Therefore, KLA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 135.93%.
The historical rank and industry rank for KLA's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:KLAC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 72.79 Med: 295.56 Max: 1767.05
Current: 166.3
During the past 13 years, KLA's highest Return-on-Tangible-Equity was 1,767.05%. The lowest was 72.79%. And the median was 295.56%.
XSWX:KLAC's Return-on-Tangible-Equity is ranked better than 98.27% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs XSWX:KLAC: 166.30
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
KLA Return-on-Tangible-Equity Related Terms
KLA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for KLA's Return-on-Tangible-Equity 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.
XSWX:KLAC vs : Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, KLA's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, KLA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where KLA's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 135.93% mean?
KLA (XSWX:KLAC) has a Return-on-Tangible-Equity of 135.93% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KLA and its competitors. This is 54% below median its historical median of 295.56. Over the past decade, KLA's Return-on-Tangible-Equity has ranged from 72.79 to 1,767.05. According to the industry distribution chart, KLA ranks #17 out of 985 companies in the Semiconductors industry, placing it in the top 1.7%.
Is KLA's Return-on-Tangible-Equity too high?
KLA's current Return-on-Tangible-Equity of 135.93% is 54% below median its 10-year median of 295.56. Over the past 10 years, this metric has ranged from a low of 72.79 to a high of 1,767.05. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. KLA's value of 135.93% is 2519.1% above this industry median. Based on the distribution chart, KLA ranks #17 out of 985 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, KLA has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does KLA's Return-on-Tangible-Equity compare to ?
According to the Semiconductors industry distribution chart, KLA ranks #17 out of 985 companies for Return-on-Tangible-Equity. This places KLA in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.19. KLA's value of 135.93% is 2519.1% above this benchmark. Historically, KLA's own Return-on-Tangible-Equity has ranged from 72.79 to 1,767.05 over the past decade. While the company's 10-year median is 295.56 vs. the industry median of 5.19, KLA has consistently been above 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 Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KLA's current Return-on-Tangible-Equity of 135.93% is 2519.1% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KLA and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLA's current Return-on-Tangible-Equity is 135.93%, which is 54% below median its own 10-year median of 295.56. 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?
KLA (XSWX:KLAC) has a current Return-on-Tangible-Equity of 135.93%. The stock's GF Value™ is CHF82.37, compared to a current price of CHF218.90 — trading 165.8% above its estimated fair value. The current Return-on-Tangible-Equity is 135.93%, which is 54% below median its 10-year median of 295.56 and 2519.1% above the Semiconductors industry median of 5.19. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For KLA (XSWX:KLAC), the current Return-on-Tangible-Equity is 135.93% 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 (XSWX:KLAC) Overvalued in 2026?
Based on GuruFocus' analysis, KLA stock appears to be overvalued.
The current stock price of CHF218.90 is trading 165.8% above its estimated GF Value™ of CHF82.37.
Key valuation signals for XSWX:KLAC:
Return-on-Tangible-Equity: 135.93% (54% below median its 10-year median of 295.56)
GF Value™: CHF82.37 vs. price of CHF218.90 (165.8% above fair value)
Industry Position: 2519.1% above the Semiconductors median (#17 of 985)
No single metric tells the full story. See the XSWX: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
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