ON Semiconductor Valuation

ON Stock  USD 59.89  2.31  3.71%   
At this time, the company appears to be fairly valued. ON Semiconductor owns a latest Real Value of $59.35 per share. The recent price of the company is $59.89. Our model determines the value of ON Semiconductor from reviewing the company fundamentals such as shares owned by insiders of 0.37 %, and Return On Asset of 0.0569 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting ON Semiconductor's valuation include:
Price Book
3.1659
Enterprise Value
25.5 B
Enterprise Value Ebitda
24.0128
Price Sales
4.035
Forward PE
21.5517
Fairly Valued
Today
59.89
Please note that ON Semiconductor's price fluctuation is very steady at this time. Calculation of the real value of ON Semiconductor is based on 3 months time horizon. Increasing ON Semiconductor's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since ON Semiconductor is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ON Semiconductor Stock. However, ON Semiconductor's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  59.89 Real  59.35 Target  63.0 Hype  60.11 Naive  58.54
The intrinsic value of ON Semiconductor's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence ON Semiconductor's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
59.35
Real Value
62.12
Upside
Estimating the potential upside or downside of ON Semiconductor helps investors to forecast how ON Semiconductor stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of ON Semiconductor more accurately as focusing exclusively on ON Semiconductor's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.650.730.81
Details
Hype
Prediction
LowEstimatedHigh
57.3460.1162.88
Details
Naive
Forecast
LowNext ValueHigh
55.7758.5461.31
Details
31 Analysts
Consensus
LowTarget PriceHigh
57.3363.0069.93
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use ON Semiconductor's intrinsic value based on its ongoing forecasts of ON Semiconductor's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against ON Semiconductor's closest peers.

ON Semiconductor Cash

3.25 Billion

ON Semiconductor Revenue by Product

ON Semiconductor Total Value Analysis

ON Semiconductor is now estimated to have takeover value of 25.53 B with market capitalization of 24.98 B, debt of 3.37 B, and cash on hands of 2.48 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the ON Semiconductor fundamentals before making investment evaluation based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
25.53 B
24.98 B
3.37 B
2.48 B

ON Semiconductor Investor Information

About 100.0% of the company shares are owned by institutional investors. The book value of ON Semiconductor was now reported as 19.5. The company has Price/Earnings To Growth (PEG) ratio of 1.98. ON Semiconductor had not issued any dividends in recent years. The entity had 10:1 split on the 11th of March 2014. Based on the analysis of ON Semiconductor's profitability, liquidity, and operating efficiency, ON Semiconductor is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.240.22
Significantly Up
Slightly volatile
Total Cash From Operating Activities2.3 B2.2 B
Sufficiently Up
Slightly volatile
Operating Income2.1 BB
Sufficiently Up
Slightly volatile

ON Semiconductor Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ON Semiconductor has an asset utilization ratio of 50.27 percent. This suggests that the Company is making $0.5 for each dollar of assets. An increasing asset utilization means that ON Semiconductor is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Interest Hikes

ON Semiconductor Profitability Analysis

Considering ON Semiconductor's profitability and operating efficiency indicators, ON Semiconductor is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in March. Profitability indicators assess ON Semiconductor's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2000-03-31
Previous Quarter
170.3 M
Current Value
255 M
Quarterly Volatility
195 M
 
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Covid
 
Interest Hikes
At this time, ON Semiconductor's Gross Profit is very stable compared to the past year. As of the 1st of February 2026, Pretax Profit Margin is likely to grow to 0.25, while Gross Profit Margin is likely to drop 0.28.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.280.41
Way Down
Slightly volatile
Operating Profit Margin0.240.22
Significantly Up
Slightly volatile
For ON Semiconductor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ON Semiconductor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ON Semiconductor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ON Semiconductor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ON Semiconductor over time as well as its relative position and ranking within its peers.

ON Semiconductor Earnings per Share Projection vs Actual

The next projected EPS of ON Semiconductor is estimated to be 0.732025 with future projections ranging from a low of 0.65 to a high of 0.8075. ON Semiconductor's most recent 12-month trailing earnings per share (EPS TTM) is at 0.73. Please be aware that the consensus of earnings estimates for ON Semiconductor is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
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Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
ON Semiconductor is projected to generate 0.732025 in earnings per share on the 31st of December 2026. ON Semiconductor earnings estimates show analyst consensus about projected ON Semiconductor EPS (Earning Per Share). It derives the highest and the lowest estimates based on ON Semiconductor's historical volatility. Many public companies, such as ON Semiconductor, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

ON Semiconductor Earnings Estimation Breakdown

The calculation of ON Semiconductor's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of ON Semiconductor is estimated to be 0.732025 with the future projection ranging from a low of 0.65 to a high of 0.8075. Please be aware that this consensus of annual earnings estimates for ON Semiconductor is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.65
Lowest
Expected EPS
0.732025
0.81
Highest

ON Semiconductor Earnings Projection Consensus

Suppose the current estimates of ON Semiconductor's value are higher than the current market price of the ON Semiconductor stock. In this case, investors may conclude that ON Semiconductor is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and ON Semiconductor's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of December 2026Current EPS (TTM)
3489.31%
0.0
0.732025
0.73

ON Semiconductor Ownership Allocation

The majority of ON Semiconductor outstanding shares are owned by institutions. These other corporate entities are usually referred to as non-private investors looking to secure positions in ON Semiconductor to benefit from reduced commissions. Hence, outside corporations are subject to a different set of regulations than regular investors in ON Semiconductor. Please pay attention to any change in the institutional holdings of ON Semiconductor as this could imply that something significant has changed or is about to change at the company. On October 22, 2018, Senator Sheldon Whitehouse of US Senate acquired under $15k worth of ON Semiconductor's common stock.

ON Semiconductor Profitability Analysis

The company generated the yearly revenue of 7.08 B. Reported Net Income was 1.57 B with gross profit of 2.49 B.

About ON Semiconductor Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of ON Semiconductor. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ON Semiconductor based exclusively on its fundamental and basic technical indicators. By analyzing ON Semiconductor's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of ON Semiconductor's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of ON Semiconductor. We calculate exposure to ON Semiconductor's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of ON Semiconductor's related companies.
Last ReportedProjected for Next Year
Gross Profit3.7 B3.9 B
Pretax Profit Margin 0.23  0.25 
Operating Profit Margin 0.22  0.24 
Net Profit Margin 0.20  0.21 
Gross Profit Margin 0.41  0.28 

ON Semiconductor Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding432.7 M
Quarterly Earnings Growth Y O Y-0.326
Forward Price Earnings21.5517

ON Semiconductor Current Valuation Indicators

ON Semiconductor's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final ON Semiconductor's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as ON Semiconductor, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use ON Semiconductor's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes ON Semiconductor's worth.
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 employment.
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Will Semiconductors & Semiconductor Equipment sector continue expanding? Could ON Semiconductor diversify its offerings? Factors like these will boost the valuation of ON Semiconductor. Anticipated expansion of ON Semiconductor directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every ON Semiconductor data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth
(0.33)
Earnings Share
0.73
Revenue Per Share
14.837
Quarterly Revenue Growth
(0.12)
Return On Assets
0.0569
Understanding ON Semiconductor requires distinguishing between market price and book value, where the latter reflects ON Semiconductor's accounting equity. The concept of intrinsic value—what ON Semiconductor's is actually worth based on fundamentals—guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push ON Semiconductor's price substantially above or below its fundamental value.
It's important to distinguish between ON Semiconductor's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding ON Semiconductor should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, ON Semiconductor's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.