On Semiconductor Stock Current Valuation
| ON Stock | USD 68.06 1.68 2.53% |
Valuation analysis of ON Semiconductor helps investors to measure ON Semiconductor's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of the 26th of April 2024, Enterprise Value Over EBITDA is likely to drop to 9.26. In addition to that, Enterprise Value Multiple is likely to drop to 9.26. Fundamental drivers impacting ON Semiconductor's valuation include:
Price Book 3.6806 | Enterprise Value 29.2 B | Enterprise Value Ebitda 9.168 | Price Sales 3.4709 | Forward PE 15.873 |
Overvalued
Today
Please note that ON Semiconductor's price fluctuation is very steady at this time. Calculation of the real value of ON Semiconductor is based on 3 months time horizon. Increasing ON Semiconductor's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for ON Semiconductor is useful when determining the fair value of the ON Semiconductor stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of ON Semiconductor. Since ON Semiconductor is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ON Semiconductor Stock. However, ON Semiconductor's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 68.06 | Real 49.79 | Target 119.5 | Hype 66.38 | Naive 67.66 |
The real value of ON Semiconductor Stock, also known as its intrinsic value, is the underlying worth of ON Semiconductor Company, which is reflected in its stock price. It is based on ON Semiconductor's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of ON Semiconductor's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence ON Semiconductor's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of ON Semiconductor helps investors to forecast how ON Semiconductor stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of ON Semiconductor more accurately as focusing exclusively on ON Semiconductor's fundamentals will not take into account other important factors: ON Semiconductor Company Current Valuation Analysis
ON Semiconductor's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current ON Semiconductor Current Valuation | 29.16 B |
Most of ON Semiconductor's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, ON Semiconductor is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
ON Semiconductor Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for ON Semiconductor is extremely important. It helps to project a fair market value of ON Semiconductor Stock properly, considering its historical fundamentals such as Current Valuation. Since ON Semiconductor's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of ON Semiconductor's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of ON Semiconductor's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, ON Semiconductor has a Current Valuation of 29.16 B. This is 50.98% higher than that of the Semiconductors & Semiconductor Equipment sector and 21.78% higher than that of the Information Technology industry. The current valuation for all United States stocks is 75.42% lower than that of the firm.
ON Semiconductor Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses ON Semiconductor's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of ON Semiconductor could also be used in its relative valuation, which is a method of valuing ON Semiconductor by comparing valuation metrics of similar companies.ON Semiconductor is currently under evaluation in current valuation category among related companies.
ON Semiconductor ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, ON Semiconductor's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to ON Semiconductor's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
ON Semiconductor Fundamentals
| Return On Equity | 0.31 | ||||
| Return On Asset | 0.13 | ||||
| Profit Margin | 0.26 % | ||||
| Operating Margin | 0.31 % | ||||
| Current Valuation | 29.16 B | ||||
| Shares Outstanding | 429.85 M | ||||
| Shares Owned By Insiders | 0.34 % | ||||
| Shares Owned By Institutions | 99.66 % | ||||
| Number Of Shares Shorted | 20.66 M | ||||
| Price To Earning | 18.40 X | ||||
| Price To Book | 3.68 X | ||||
| Price To Sales | 3.47 X | ||||
| Revenue | 8.25 B | ||||
| Gross Profit | 4.08 B | ||||
| EBITDA | 2.54 B | ||||
| Net Income | 2.19 B | ||||
| Cash And Equivalents | 2.48 B | ||||
| Cash Per Share | 5.74 X | ||||
| Total Debt | 3.36 B | ||||
| Debt To Equity | 0.61 % | ||||
| Current Ratio | 3.02 X | ||||
| Book Value Per Share | 18.25 X | ||||
| Cash Flow From Operations | 1.98 B | ||||
| Short Ratio | 3.40 X | ||||
| Earnings Per Share | 4.89 X | ||||
| Price To Earnings To Growth | 1.29 X | ||||
| Target Price | 85.81 | ||||
| Number Of Employees | 30 K | ||||
| Beta | 1.79 | ||||
| Market Capitalization | 28.55 B | ||||
| Total Asset | 13.22 B | ||||
| Retained Earnings | 6.55 B | ||||
| Working Capital | 3.73 B | ||||
| Current Asset | 515.1 M | ||||
| Current Liabilities | 310.8 M | ||||
| Net Asset | 13.22 B |
About ON Semiconductor Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze ON Semiconductor's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ON Semiconductor using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ON Semiconductor based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Is ON Semiconductor's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ON Semiconductor. If investors know ON Semiconductor will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ON Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.05) | Earnings Share 4.89 | Revenue Per Share 19.162 | Quarterly Revenue Growth (0.04) | Return On Assets 0.1294 |
The market value of ON Semiconductor is measured differently than its book value, which is the value of ON Semiconductor that is recorded on the company's balance sheet. Investors also form their own opinion of ON Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is ON Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ON Semiconductor's market value can be influenced by many factors that don't directly affect ON Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ON Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if ON Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ON Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.