ON Semiconductor Valuation
Is ON * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation 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 ON * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ON * (MX$1400) is trading below our estimate of fair value (MX$2720.84)
Significantly Below Fair Value: ON * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ON *?
Key metric: As ON * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is ON *'s PE Ratio? | |
|---|---|
| PE Ratio | 16.9x |
| Earnings | US$1.76b |
| Market Cap | US$29.64b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 4.1x |
| Enterprise Value/EBITDA | 11.1x |
| PEG Ratio | 1.1x |
Price to Earnings Ratio vs Peers
How does ON *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 38.4x | ||
MCHP Microchip Technology | 45.8x | 31.0% | US$35.8b |
GFS GlobalFoundries | 31.9x | 22.5% | US$23.7b |
MPWR Monolithic Power Systems | 65.2x | 21.6% | US$28.3b |
STMPA STMicroelectronics | 10.6x | -0.2% | €21.0b |
ON * ON Semiconductor | 16.9x | 14.9% | Mex$29.6b |
Price-To-Earnings vs Peers: ON * is good value based on its Price-To-Earnings Ratio (16.9x) compared to the peer average (38.4x).
Price to Earnings Ratio vs Industry
How does ON *'s PE Ratio compare vs other companies in the Global Semiconductor Industry?
| 15 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 15 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: ON * is good value based on its Price-To-Earnings Ratio (16.9x) compared to the Global Semiconductor industry average (31.2x).
Price to Earnings Ratio vs Fair Ratio
What is ON *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 16.9x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ON *'s Price-To-Earnings Fair Ratio for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$1,400.00 | Mex$1,761.51 +25.8% | 12.7% | Mex$2,191.43 | Mex$1,126.44 | n/a | 29 |
| Nov ’25 | Mex$1,481.97 | Mex$1,720.16 +16.1% | 13.1% | Mex$2,149.26 | Mex$1,104.76 | n/a | 27 |
| Oct ’25 | Mex$1,405.00 | Mex$1,644.06 +17.0% | 13.3% | Mex$2,014.07 | Mex$1,140.04 | n/a | 27 |
| Sep ’25 | n/a | Mex$1,644.06 0% | 13.3% | Mex$2,014.07 | Mex$1,140.04 | n/a | 27 |
| Aug ’25 | Mex$1,484.40 | Mex$1,624.56 +9.4% | 13.2% | Mex$1,987.63 | Mex$1,125.07 | n/a | 27 |
| Jul ’25 | n/a | Mex$1,406.42 0% | 13.5% | Mex$1,745.57 | Mex$923.14 | n/a | 28 |
| Jun ’25 | n/a | Mex$1,406.42 0% | 13.5% | Mex$1,745.57 | Mex$923.14 | n/a | 28 |
| May ’25 | n/a | Mex$1,431.37 0% | 13.1% | Mex$1,781.19 | Mex$941.97 | n/a | 28 |
| Apr ’25 | Mex$1,226.00 | Mex$1,514.76 +23.6% | 11.4% | Mex$1,960.35 | Mex$1,022.79 | n/a | 28 |
| Mar ’25 | Mex$1,371.00 | Mex$1,514.76 +10.5% | 11.4% | Mex$1,960.35 | Mex$1,022.79 | n/a | 28 |
| Feb ’25 | Mex$1,264.67 | Mex$1,510.56 +19.4% | 12.3% | Mex$1,886.59 | Mex$1,029.05 | n/a | 28 |
| Jan ’25 | Mex$1,419.09 | Mex$1,489.99 +5.0% | 14.1% | Mex$1,888.47 | Mex$1,030.07 | n/a | 28 |
| Dec ’24 | Mex$1,230.00 | Mex$1,499.50 +21.9% | 14.5% | Mex$1,903.95 | Mex$1,038.52 | n/a | 27 |
| Nov ’24 | Mex$1,140.00 | Mex$1,589.26 +39.4% | 16.0% | Mex$2,159.97 | Mex$1,081.79 | Mex$1,481.97 | 26 |
| Oct ’24 | n/a | Mex$2,021.79 0% | 8.7% | Mex$2,270.30 | Mex$1,631.25 | Mex$1,405.00 | 26 |
| Sep ’24 | n/a | Mex$2,021.79 0% | 8.7% | Mex$2,270.30 | Mex$1,631.25 | n/a | 26 |
| Aug ’24 | Mex$1,721.00 | Mex$2,008.44 +16.7% | 9.9% | Mex$2,276.28 | Mex$1,534.38 | Mex$1,484.40 | 26 |
| Jul ’24 | n/a | Mex$1,655.48 0% | 8.1% | Mex$1,893.11 | Mex$1,376.81 | n/a | 26 |
| Jun ’24 | n/a | Mex$1,689.19 0% | 7.6% | Mex$1,947.23 | Mex$1,416.17 | n/a | 26 |
| May ’24 | Mex$1,215.00 | Mex$1,652.88 +36.0% | 9.3% | Mex$1,972.15 | Mex$1,326.72 | n/a | 26 |
| Apr ’24 | Mex$1,480.00 | Mex$1,644.23 +11.1% | 8.3% | Mex$1,888.41 | Mex$1,330.88 | Mex$1,226.00 | 26 |
| Mar ’24 | Mex$1,420.00 | Mex$1,656.89 +16.7% | 8.6% | Mex$1,933.04 | Mex$1,343.92 | Mex$1,371.00 | 27 |
| Feb ’24 | n/a | Mex$1,411.31 0% | 8.1% | Mex$1,595.38 | Mex$1,032.31 | Mex$1,264.67 | 28 |
| Jan ’24 | n/a | Mex$1,445.32 0% | 7.9% | Mex$1,621.26 | Mex$1,074.33 | Mex$1,419.09 | 28 |
| Dec ’23 | Mex$1,424.00 | Mex$1,428.64 +0.3% | 7.9% | Mex$1,607.98 | Mex$1,065.53 | Mex$1,230.00 | 28 |
| Nov ’23 | Mex$1,233.90 | Mex$1,447.44 +17.3% | 7.7% | Mex$1,597.31 | Mex$1,084.59 | Mex$1,140.00 | 27 |
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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