ON PE Ratio & Valuation,Is ON Overvalued

ON Relative Valuation

ON's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ON is overvalued; if below, it's undervalued.

Historical Valuation

ON Semiconductor Corp (ON) is now in the Fair zone, suggesting that its current forward PE ratio of 20.31 is considered Fairly compared with the five-year average of 16.44. The fair price of ON Semiconductor Corp (ON) is between 47.99 to 61.05 according to relative valuation methord.

Relative Value

Fair Zone

47.99-61.05

Current Price：54.96

Fair

20.31

12.78

EV/EBITDA

ON Semiconductor Corp. (ON) has a current EV/EBITDA of 12.78. The 5-year average EV/EBITDA is 10.75. The thresholds are as follows: Strongly Undervalued below 7.39, Undervalued between 7.39 and 9.07, Fairly Valued between 12.44 and 9.07, Overvalued between 12.44 and 14.12, and Strongly Overvalued above 14.12. The current Forward EV/EBITDA of 12.78 falls within the Overvalued range.

18.31

EV/EBIT

ON Semiconductor Corp. (ON) has a current EV/EBIT of 18.31. The 5-year average EV/EBIT is 14.42. The thresholds are as follows: Strongly Undervalued below 8.91, Undervalued between 8.91 and 11.67, Fairly Valued between 17.18 and 11.67, Overvalued between 17.18 and 19.93, and Strongly Overvalued above 19.93. The current Forward EV/EBIT of 18.31 falls within the Overvalued range.

3.55

ON Semiconductor Corp. (ON) has a current PS of 3.55. The 5-year average PS is 3.59. The thresholds are as follows: Strongly Undervalued below 2.09, Undervalued between 2.09 and 2.84, Fairly Valued between 4.35 and 2.84, Overvalued between 4.35 and 5.10, and Strongly Overvalued above 5.10. The current Forward PS of 3.55 falls within the Historic Trend Line -Fairly Valued range.

11.26

P/OCF

ON Semiconductor Corp. (ON) has a current P/OCF of 11.26. The 5-year average P/OCF is 11.55. The thresholds are as follows: Strongly Undervalued below 7.65, Undervalued between 7.65 and 9.60, Fairly Valued between 13.50 and 9.60, Overvalued between 13.50 and 15.45, and Strongly Overvalued above 15.45. The current Forward P/OCF of 11.26 falls within the Historic Trend Line -Fairly Valued range.

13.04

P/FCF

ON Semiconductor Corp. (ON) has a current P/FCF of 13.04. The 5-year average P/FCF is 19.50. The thresholds are as follows: Strongly Undervalued below 3.79, Undervalued between 3.79 and 11.65, Fairly Valued between 27.35 and 11.65, Overvalued between 27.35 and 35.21, and Strongly Overvalued above 35.21. The current Forward P/FCF of 13.04 falls within the Historic Trend Line -Fairly Valued range.

ON Semiconductor Corp (ON) has a current Price-to-Book (P/B) ratio of 2.82. Compared to its 3-year average P/B ratio of 3.91 , the current P/B ratio is approximately -28.00% higher. Relative to its 5-year average P/B ratio of 4.38, the current P/B ratio is about -35.63% higher. ON Semiconductor Corp (ON) has a Forward Free Cash Flow (FCF) yield of approximately 6.13%. Compared to its 3-year average FCF yield of 3.97%, the current FCF yield is approximately 54.27% lower. Relative to its 5-year average FCF yield of 4.13% , the current FCF yield is about 48.55% lower.

2.82

P/B

Median3y

3.91

Median5y

4.38

6.13

FCF Yield

Median3y

3.97

Median5y

4.13

Competitors Valuation Multiple

The average P/S ratio for ON's competitors is 6.66, providing a benchmark for relative valuation. ON Semiconductor Corp Corp (ON) exhibits a P/S ratio of 3.55, which is -46.64% above the industry average. Given its robust revenue growth of -11.98%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ON decreased by 12.83% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 57.25 to 72.79.

The secondary factor is the Revenue Growth, contributed -11.98%to the performance.

Overall, the performance of ON in the past 1 year is driven by P/E Change. Which is more unsustainable.

-11.98%

1.76B → 1.55B

Revenue Growth

-28.00%

22.86 → 16.46

Margin Expansion

27.15%

57.25 → 72.79

P/E Change

-12.83%

63.05 → 54.96

Mkt Cap Growth

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Frequently Asked Questions

Is ON Semiconductor Corp (ON) currently overvalued or undervalued?

What is ON Semiconductor Corp (ON) fair value?

ON's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of ON Semiconductor Corp (ON) is between 47.99 to 61.05 according to relative valuation methord.

How does ON's valuation metrics compare to the industry average?

What is the current P/B ratio for ON Semiconductor Corp (ON) as of Dec 15 2025?

As of Dec 15 2025, ON Semiconductor Corp (ON) has a P/B ratio of 2.82. This indicates that the market values ON at 2.82 times its book value.

What is the current FCF Yield for ON Semiconductor Corp (ON) as of Dec 15 2025?

As of Dec 15 2025, ON Semiconductor Corp (ON) has a FCF Yield of 6.13%. This means that for every dollar of ON Semiconductor Corp’s market capitalization, the company generates 6.13 cents in free cash flow.

What is the current Forward P/E ratio for ON Semiconductor Corp (ON) as of Dec 15 2025?

As of Dec 15 2025, ON Semiconductor Corp (ON) has a Forward P/E ratio of 20.31. This means the market is willing to pay $20.31 for every dollar of ON Semiconductor Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for ON Semiconductor Corp (ON) as of Dec 15 2025?

As of Dec 15 2025, ON Semiconductor Corp (ON) has a Forward P/S ratio of 3.55. This means the market is valuing ON at $3.55 for every dollar of expected revenue over the next 12 months.

ON Valuation