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ON Semiconductor Corporation — Intrinsic Value & Fair Price

ON
NASDAQTechnologySemiconductorsCIK 0001097864onsemi.comAbout ON
Last close · Oct 16, 202672.02−1.68 (−2.28%)
Market cap$28.0B
Model value · DCF · Perpetuity growth · 5y
40.87
ON Semiconductor closed at $72.02 — overvalued by 76% vs model.
31.16the model's range60.28

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
12.28 – 152.04
Wall St. target
90.00 20% below
Above model, 1y
20 of 20 days

Price and model value

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What the marks mean
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Research on ON

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How it is valued

Valued asCyclical
Revenue declining (~-15% recent)Thin margins (2.0% net margin)Highly cyclical earningsStrong FCF yield (5.1%)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
248×
EV / EBITDA
32.5×
FCF yield
4.8%
Dividend yield, TTM
0.00%
Beta
2.05
Cost of capital (WACC)
11.44%
Full financials

Analyst actions

third-party, quoted
10-05Stifel Nicolaus · target80.00
09-22Seaport Global · target100.00
09-18Truist Financial · target75.00
04-13B of A Securities · “Buy” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists ON as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just ON. No account.

About ON Semiconductor

ON Semiconductor Corporation operates as a global provider of sophisticated power and sensing solutions. Their cutting-edge power innovations are pivotal in modernizing various sectors: they contribute to the development of lighter, extended-range electric vehicles, underpin rapid-charging infrastructure, and bolster sustainable energy initiatives for applications such as solar arrays, industrial power systems, and energy storage. The company's operations are structured into three main divisions: the Power Solutions Group, the Advanced Solutions Group, and the Intelligent Sensing Group. ON Semiconductor offers a broad array of semiconductor products, including analog components, discrete devices, modules, and integrated circuits. These products are designed to perform numerous critical functions, such as power switching, energy conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation. Beyond these standard offerings, the firm also designs and develops specialized analog, mixed-signal, advanced logic, application-specific integrated circuits (ASICs) and standard products, radio frequency (RF) components, and integrated power management solutions, catering to a diverse range of end-market consumers. Furthermore, it provides foundry and design services specifically for government clients. The company's portfolio also encompasses advanced imaging technologies. This includes the creation of complementary metal-oxide-semiconductor (CMOS) image sensors, sophisticated image signal processors, and single photon detectors like silicon photomultipliers (SiPMs) and single-photon avalanche diode (SPAD) arrays. Additionally, ON Semiconductor produces actuator drivers essential for autofocus and image stabilization, serving a wide spectrum of end-users across numerous industries. Established in 1992, ON Semiconductor Corporation is headquartered in Phoenix, Arizona.

CEO
Hassane S. El-Khoury
Headquarters
Scottsdale, AZ
Employees
22,600
IPO
2000-05-02
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.