ON Semiconductor Historical Valuation
| ON Stock | USD 70.35 0.47 0.66% |
Some fundamental drivers such as market cap or ON Semiconductor enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze ON Semiconductor valuation indicators such as to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of ON Semiconductor's future value.
ON Semiconductor |
About ON Semiconductor Valuation Data Analysis
Valuation is the financial process of determining what ON Semiconductor is worth. ON Semiconductor valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. ON Semiconductor valuation ratios help investors to determine whether ON Semiconductor Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in ON Semiconductor with respect to the benefits of owning ON Semiconductor security.
ON Semiconductor Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as ON Semiconductor theoretical takeover price. In the event of an acquisition, an acquirer would have to take on ON Semiconductor debt, but would also pocket its cash. Enterprise Value is more accurate representation of ON Semiconductor value than its market capitalization because it takes into account all of ON Semiconductor existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Pair Trading with ON Semiconductor
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ON Semiconductor position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ON Semiconductor will appreciate offsetting losses from the drop in the long position's value.Moving together with ON Semiconductor Stock
Moving against ON Semiconductor Stock
| 0.4 | NTGR | NETGEAR | PairCorr |
| 0.35 | AMZN | Amazon Inc Aggressive Push | PairCorr |
| 0.33 | CSCO | Cisco Systems Aggressive Push | PairCorr |
| 0.31 | KVHI | KVH Industries | PairCorr |
The ability to find closely correlated positions to ON Semiconductor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ON Semiconductor when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ON Semiconductor - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ON Semiconductor to buy it.
The correlation of ON Semiconductor is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ON Semiconductor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ON Semiconductor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ON Semiconductor can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in ON Semiconductor. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in ON Semiconductor Stock, please use our How to Invest in ON Semiconductor guide.You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ON Semiconductor. If investors know ON Semiconductor will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ON Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.28) | Earnings Share 4.03 | Revenue Per Share 17.235 | Quarterly Revenue Growth (0.19) | Return On Assets 0.0956 |
The market value of ON Semiconductor is measured differently than its book value, which is the value of ON Semiconductor that is recorded on the company's balance sheet. Investors also form their own opinion of ON Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is ON Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ON Semiconductor's market value can be influenced by many factors that don't directly affect ON Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ON Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if ON Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ON Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.