ON Semiconductor Corporation

NasdaqGS:ON Stock Report

Market Cap: US$28.3b

ON Semiconductor Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • 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 ($66.65) is trading below our estimate of fair value ($170.46)

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.

The above table shows the Price to Earnings ratio for ON. This is calculated by dividing ON's market cap by their current earnings.
What is ON's PE Ratio?
PE Ratio16.2x
EarningsUS$1.76b
Market CapUS$28.31b

Price to Earnings Ratio vs Peers

How does ON's PE Ratio compare to its peers?

The above table shows the PE ratio for ON vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.5x
GFS GlobalFoundries
31.6x22.5%US$23.4b
MCHP Microchip Technology
44.6x31.0%US$35.0b
MPWR Monolithic Power Systems
65.8x22.1%US$28.7b
FSLR First Solar
16.1x28.2%US$20.9b
ON ON Semiconductor
16.2x14.9%US$28.3b

Price-To-Earnings vs Peers: ON is good value based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (39.5x).

Price to Earnings Ratio vs Industry

How does ON's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.7xn/aUS$148.38m
SQNS Sequans Communications
1.6x-156.5%US$64.96m
No more companies available in this PE range
ON 16.2xIndustry Avg. 30.6xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ON is good value based on its Price-To-Earnings Ratio (16.2x) compared to the US Semiconductor industry average (30.6x).

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.

ON PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.2x
Fair PE Ratio28.3x

Price-To-Earnings vs Fair Ratio: ON is good value based on its Price-To-Earnings Ratio (16.2x) compared to the estimated Fair Price-To-Earnings Ratio (28.3x).

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 ON forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$66.65
US$86.04
+29.1%
12.9%US$107.00US$55.00n/a28
Nov ’25US$70.99
US$85.64
+20.6%
13.1%US$107.00US$55.00n/a27
Oct ’25US$71.05
US$86.53
+21.8%
13.3%US$106.00US$60.00n/a27
Sep ’25US$77.87
US$86.53
+11.1%
13.3%US$106.00US$60.00n/a27
Aug ’25US$71.90
US$86.64
+20.5%
13.2%US$106.00US$60.00n/a27
Jul ’25US$69.18
US$83.79
+21.1%
13.5%US$104.00US$55.00n/a28
Jun ’25US$73.04
US$83.79
+14.7%
13.5%US$104.00US$55.00n/a28
May ’25US$69.01
US$83.58
+21.1%
13.1%US$104.00US$55.00n/a28
Apr ’25US$73.85
US$88.86
+20.3%
11.4%US$115.00US$60.00n/a28
Mar ’25US$81.14
US$88.86
+9.5%
11.4%US$115.00US$60.00n/a28
Feb ’25US$70.19
US$88.08
+25.5%
12.3%US$110.00US$60.00n/a28
Jan ’25US$83.53
US$86.79
+3.9%
14.1%US$110.00US$60.00n/a28
Dec ’24US$74.18
US$86.63
+16.8%
14.5%US$110.00US$60.00n/a27
Nov ’24US$64.84
US$88.15
+35.9%
16.0%US$119.80US$60.00US$70.9926
Oct ’24US$92.95
US$120.22
+29.3%
8.7%US$135.00US$97.00US$71.0526
Sep ’24US$99.40
US$120.22
+20.9%
8.7%US$135.00US$97.00US$77.8726
Aug ’24US$108.09
US$119.12
+10.2%
9.9%US$135.00US$91.00US$71.9026
Jul ’24US$94.58
US$96.19
+1.7%
8.1%US$110.00US$80.00US$69.1826
Jun ’24US$87.95
US$95.42
+8.5%
7.6%US$110.00US$80.00US$73.0426
May ’24US$78.33
US$92.19
+17.7%
9.3%US$110.00US$74.00US$69.0126
Apr ’24US$82.32
US$91.42
+11.1%
8.3%US$105.00US$74.00US$73.8526
Mar ’24US$78.23
US$90.00
+15.0%
8.6%US$105.00US$73.00US$81.1427
Feb ’24US$77.84
US$75.19
-3.4%
8.1%US$85.00US$55.00US$70.1928
Jan ’24US$62.37
US$73.99
+18.6%
7.9%US$83.00US$55.00US$83.5328
Dec ’23US$73.99
US$73.74
-0.3%
7.9%US$83.00US$55.00US$74.1828
Nov ’23US$61.74
US$73.40
+18.9%
7.7%US$81.00US$55.00US$64.8427

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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