Onto Innovation Inc.

NYSE:ONTO Stock Report

Market Cap: US$8.0b

Onto Innovation Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ONTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ONTO ($161.91) is trading below our estimate of fair value ($184.94)

Significantly Below Fair Value: ONTO is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ONTO. This is calculated by dividing ONTO's market cap by their current earnings.
What is ONTO's PE Ratio?
PE Ratio43.7x
EarningsUS$183.16m
Market CapUS$8.04b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ONTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63x
ENPH Enphase Energy
139.4x46.2%US$8.3b
AMKR Amkor Technology
17.1x30.7%US$6.3b
NVMI Nova
29.5x15.3%US$5.1b
ENTG Entegris
66x50.4%US$15.0b
ONTO Onto Innovation
43.7x30.7%US$8.0b

Price-To-Earnings vs Peers: ONTO is good value based on its Price-To-Earnings Ratio (43.7x) compared to the peer average (63x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.5xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
ONTO 43.7xIndustry Avg. 30.3xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ONTO is expensive based on its Price-To-Earnings Ratio (43.7x) compared to the US Semiconductor industry average (30.1x).

Price to Earnings Ratio vs Fair Ratio

What is ONTO'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.

ONTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.7x
Fair PE Ratio33.4x

Price-To-Earnings vs Fair Ratio: ONTO is expensive based on its Price-To-Earnings Ratio (43.7x) compared to the estimated Fair Price-To-Earnings Ratio (33.4x).

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 ONTO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$161.91
US$255.12
+57.6%
6.7%US$280.00US$230.00n/a9
Nov ’25US$176.10
US$255.12
+44.9%
6.7%US$280.00US$230.00n/a9
Oct ’25US$200.57
US$262.93
+31.1%
7.0%US$288.46US$230.00n/a8
Sep ’25US$213.22
US$261.21
+22.5%
7.3%US$288.46US$230.00n/a7
Aug ’25US$173.67
US$256.17
+47.5%
6.9%US$280.00US$230.00n/a6
Jul ’25US$218.99
US$253.00
+15.5%
7.0%US$280.00US$230.00n/a5
Jun ’25US$216.70
US$247.00
+14.0%
4.7%US$265.00US$230.00n/a5
May ’25US$185.23
US$213.20
+15.1%
9.8%US$235.00US$180.00n/a5
Apr ’25US$185.30
US$188.70
+1.8%
11.3%US$215.00US$153.50n/a5
Mar ’25US$192.59
US$183.30
-4.8%
9.2%US$205.00US$153.50n/a5
Feb ’25US$162.95
US$165.70
+1.7%
10.6%US$195.00US$145.00n/a5
Jan ’25US$152.90
US$158.75
+3.8%
8.4%US$180.00US$145.00n/a4
Dec ’24US$141.05
US$156.25
+10.8%
8.9%US$180.00US$145.00n/a4
Nov ’24US$113.47
US$153.75
+35.5%
9.9%US$175.00US$135.00US$176.104
Oct ’24US$127.52
US$145.00
+13.7%
6.5%US$160.00US$135.00US$200.574
Sep ’24US$136.78
US$145.00
+6.0%
6.5%US$160.00US$135.00US$213.224
Aug ’24US$123.21
US$128.00
+3.9%
6.3%US$140.00US$118.00US$173.674
Jul ’24US$116.47
US$126.75
+8.8%
5.0%US$135.00US$118.00US$218.994
Jun ’24US$106.74
US$104.60
-2.0%
10.8%US$124.00US$92.00US$216.705
May ’24US$81.97
US$97.20
+18.6%
5.1%US$105.00US$92.00US$185.235
Apr ’24US$87.88
US$96.50
+9.8%
5.5%US$105.00US$92.00US$185.304
Mar ’24US$83.56
US$96.50
+15.5%
5.5%US$105.00US$92.00US$192.594
Feb ’24US$83.41
US$86.00
+3.1%
7.7%US$95.00US$75.00US$162.955
Jan ’24US$68.09
US$86.00
+26.3%
7.7%US$95.00US$75.00US$152.905
Dec ’23US$80.85
US$86.00
+6.4%
7.7%US$95.00US$75.00US$141.055
Nov ’23US$70.40
US$86.00
+22.2%
7.7%US$95.00US$75.00US$113.475

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

Discover undervalued companies

NXP Semiconductors

US$55.9b

Offers various semiconductor products.

NXPI

US$220.34

7D

-1.2%

1Y

10.4%

Peraso

US$2.3m

A fabless semiconductor company, develops, markets, and sells semiconductor devices and antenna modules in the United States, Hong Kong, Taiwan, and internationally.

PRSO

US$0.85

7D

-0.7%

1Y

-89.2%

First Solar

US$20.1b

A solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally.

FSLR

US$184.84

7D

1.5%

1Y

15.7%