ON Semiconductor Corporation

LSE:0KC4 Stock Report

Market Cap: US$28.5b

ON Semiconductor Valuation

Is 0KC4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0KC4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0KC4 ($64.75) is trading below our estimate of fair value ($174.04)

Significantly Below Fair Value: 0KC4 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0KC4?

Key metric: As 0KC4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0KC4. This is calculated by dividing 0KC4's market cap by their current earnings.
What is 0KC4's PE Ratio?
PE Ratio15.7x
EarningsUS$1.76b
Market CapUS$28.54b

Price to Earnings Ratio vs Peers

How does 0KC4's PE Ratio compare to its peers?

The above table shows the PE ratio for 0KC4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.7x
GFS GlobalFoundries
30.8x22.7%US$23.6b
STMPA STMicroelectronics
11.1x0.8%€21.7b
MCHP Microchip Technology
43.2x31.0%US$35.2b
6723 Renesas Electronics
13.8x10.1%JP¥3.7t
0KC4 ON Semiconductor
15.7x14.9%US$28.5b

Price-To-Earnings vs Peers: 0KC4 is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

How does 0KC4's PE Ratio compare vs other companies in the European Semiconductor Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0KC4 15.7xIndustry Avg. 14.4xNo. of Companies7PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0KC4 is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the European Semiconductor industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is 0KC4's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0KC4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio30.1x

Price-To-Earnings vs Fair Ratio: 0KC4 is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (30.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0KC4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$64.75
US$86.04
+32.9%
12.9%US$107.00US$55.00n/a28
Nov ’25US$71.34
US$85.64
+20.0%
13.1%US$107.00US$55.00n/a27
Oct ’25US$71.28
US$86.53
+21.4%
13.3%US$106.00US$60.00n/a27
Sep ’25US$76.81
US$86.53
+12.6%
13.3%US$106.00US$60.00n/a27
Aug ’25US$71.94
US$86.64
+20.4%
13.2%US$106.00US$60.00n/a27
Jul ’25US$68.55
US$83.79
+22.2%
13.5%US$104.00US$55.00n/a28
Jun ’25US$71.44
US$83.79
+17.3%
13.5%US$104.00US$55.00n/a28
May ’25US$69.36
US$83.58
+20.5%
13.1%US$104.00US$55.00n/a28
Apr ’25US$73.50
US$88.86
+20.9%
11.4%US$115.00US$60.00n/a28
Mar ’25US$82.08
US$88.86
+8.3%
11.4%US$115.00US$60.00n/a28
Feb ’25US$70.26
US$88.08
+25.3%
12.3%US$110.00US$60.00n/a28
Jan ’25US$83.96
US$86.79
+3.4%
14.1%US$110.00US$60.00n/a28
Dec ’24US$74.07
US$86.63
+17.0%
14.5%US$110.00US$60.00n/a27
Nov ’24US$64.17
US$88.15
+37.4%
16.0%US$119.80US$60.00US$71.3426
Oct ’24US$93.23
US$120.22
+29.0%
8.7%US$135.00US$97.00US$71.2826
Sep ’24US$99.74
US$120.22
+20.5%
8.7%US$135.00US$97.00US$76.8126
Aug ’24US$108.17
US$119.12
+10.1%
9.9%US$135.00US$91.00US$71.9426
Jul ’24US$94.78
US$96.19
+1.5%
8.1%US$110.00US$80.00US$68.5526
Jun ’24US$87.66
US$95.42
+8.9%
7.6%US$110.00US$80.00US$71.4426
May ’24US$70.85
US$92.19
+30.1%
9.3%US$110.00US$74.00US$69.3626
Apr ’24US$81.34
US$91.42
+12.4%
8.3%US$105.00US$74.00US$73.5026
Mar ’24US$78.49
US$90.00
+14.7%
8.6%US$105.00US$73.00US$82.0827
Feb ’24US$75.00
US$75.19
+0.3%
8.1%US$85.00US$55.00US$70.2628
Jan ’24US$61.95
US$73.99
+19.4%
7.9%US$83.00US$55.00US$83.9628
Dec ’23US$74.03
US$73.74
-0.4%
7.9%US$83.00US$55.00US$74.0728
Nov ’23US$62.07
US$73.40
+18.2%
7.7%US$81.00US$55.00US$64.1727

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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