ON Semiconductor Valuation
| ON Stock | USD 69.62 1.15 1.68% |
At this time, the company appears to be undervalued. ON Semiconductor owns a latest Real Value of $82.3 per share. The recent price of the company is $69.62. Our model determines the value of ON Semiconductor from reviewing the company fundamentals such as shares owned by insiders of 0.30 %, and Return On Asset of 0.0956 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting ON Semiconductor's valuation include:
Price Book 3.4534 | Enterprise Value 30.2 B | Enterprise Value Ebitda 11.1786 | Price Sales 4.0179 | Forward PE 15.456 |
Undervalued
Today
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 69.62 | Real 82.3 | Target 119.5 | Hype 69.53 | Naive 66.51 |
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.
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: 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 |
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ON Semiconductor Valuation Trend
Knowing ON Semiconductor's actual value is paramount for traders when making sound investment determinations. Using both ON Semiconductor's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
ON Semiconductor Revenue by Product
ON Semiconductor Total Value Analysis
ON Semiconductor is now estimated to have takeover value of 30.24 B with market capitalization of 29.64 B, debt of 3.36 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 Price | Market Cap | Debt Obligations | Cash |
30.24 B | 29.64 B | 3.36 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 20.17. The company has Price/Earnings To Growth (PEG) ratio of 1.91. ON Semiconductor had not issued any dividends in recent years. The entity had 10:1 split on the 13th of March 2014. Based on the analysis of ON Semiconductor's profitability, liquidity, and operating efficiency, ON Semiconductor may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 2.1 B | 2 B |
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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 62.45 percent. This suggests that the Company is making $0.62 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.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 8, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of ON Semiconductor's common stock.ON Semiconductor Profitability Analysis
The company generated the yearly revenue of 8.25 B. Reported Net Income was 2.19 B with gross profit of 4.08 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 Reported | Projected for Next Year | ||
| Gross Profit | 3.9 B | 4.1 B | |
| Pretax Profit Margin | 0.31 | 0.32 | |
| Operating Profit Margin | 0.31 | 0.32 | |
| Net Profit Margin | 0.26 | 0.28 | |
| Gross Profit Margin | 0.47 | 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 Outstanding | 446.8 M | |
| Quarterly Earnings Growth Y O Y | -0.281 | |
| Forward Price Earnings | 15.456 |
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 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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.