---
title: ON Semiconductor (ON) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/on
ticker: ON
as_of: 2026-10-17
sector: Technology
industry: Semiconductors
---
# ON Semiconductor (ON)

ON Semiconductor (ON) closed at $72.02 on Oct 16, 2026, overvalued by 76% vs its model value of $40.87 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $72.02 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $40.87 |
| Price vs model | overvalued by 76% vs model |
| Range of that model | $31.16 – $60.28 |
| Market value | $28.0B |
| P/E (fiscal 2025) | 248.3 |
| Net margin (fiscal 2025) | 2.0% |
| Free cash flow (fiscal 2025) | $1.4B |
| Dividend yield (trailing twelve months) | 0.00% |
| Beta | 2.05 |
| Cost of capital (WACC) | 11.44% |
| Business classification | Cyclical (Revenue declining (~-15% recent), Thin margins (2.0% net margin), Highly cyclical earnings, Strong FCF yield (5.1%)) |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $40.87 | $31.16 | $60.28 |
| DCF · Perpetuity growth · 10y | cross check | $51.58 | $39.30 | $75.88 |
| DCF · EBITDA exit · 5y | cross check | $152.04 | $121.97 | $186.96 |
| DCF · EBITDA exit · 10y | cross check | $150.93 | $113.67 | $199.27 |
| P/E · peers | cross check | $55.34 | $29.39 | $83.17 |
| P/E · own history | cross check | $34.34 | $25.72 | $51.80 |
| PEG | sanity check | $80.03 | $80.03 | $80.03 |
| EV/EBITDA · peers | cross check | $55.93 | $25.93 | $99.74 |
| EV/Revenue · peers | cross check | $135.09 | $50.75 | $241.65 |
| Earnings power value | cross check | $12.28 | $10.62 | $14.44 |
| Dividend discount | cross check | $0.00 | $0.00 | $0.00 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 1 open-market sale ($1.2M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 2, 2026 | MASCARENAS PAUL ANTHONY | Director | Grant / award | 126 | $10,696.1 |
| Oct 1, 2026 | GOPALSWAMY SUDHIR | Group President, AMG & ISG | Open-market sell (10b5-1 plan) | 15,578 | $1.2M |
| Jul 2, 2026 | MASCARENAS PAUL ANTHONY | Director | Grant / award | 116 | $10,581.5 |
| May 26, 2026 | GOPALSWAMY SUDHIR | Group President, AMG & ISG | Tax withholding | 470 | $59,690 |
| May 14, 2026 | Deitrich Thomas | Director | Grant / award | 1,986 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 1, 2026 | DEFA14A | Additional proxy materials | https://www.sec.gov/Archives/edgar/data/1097864/000114036126038297/ef20083030_formdefa14a.htm |
| Oct 1, 2026 | 8-K | 1.01 Entry into a Material Agreement; 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1097864/000114036126038294/ef20083030_8k.htm |
| Aug 21, 2026 | S-4 | Merger registration | https://www.sec.gov/Archives/edgar/data/1097864/000114036126033970/ny20076897x1_s4.htm |
| Aug 13, 2026 | 8-K | 8.01 Other Events | https://www.sec.gov/Archives/edgar/data/1097864/000114036126032594/ef20080111_8k.htm |
| Aug 3, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1097864/000114036126030989/ef20079200_8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Soros | 2026-06-30 | 228,022 | $21.6M |
| Bridgewater | 2026-06-30 | 58,377 | $5.5M |
| Robert Olstein | 2026-03-31 | 86,000 | $5.3M |
| Lee Ainslie | 2026-06-30 | 7,979 | $754,335 |

4 tracked managers in all.

## About

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…

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Source: https://sweetvaluelab.com/stocks/on (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.