ON Semiconductor Corporation (ON) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-72.5%

$19.94

vs $72.46 price

Levered DCF

$17.95

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.63

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	186.72×	17.13×	16.48×	14.21×	28.66×	57.42×	46.88×	11.16×
P/B	2.9×	3.06×	4.62×	4.37×	6.31×	3.8×	3.03×	2.21×
P/S	3.71×	3.8×	4.36×	3.25×	4.29×	2.56×	1.82×	1.19×
EV / EBITDA	26.54×	10.86×	11.44×	9.08×	16.27×	16.34×	12.51×	6.25×
Gross margin	33.1%	45.4%	47.1%	49.0%	40.3%	32.7%	35.8%	38.1%
Operating margin	1.4%	25.0%	30.8%	28.3%	19.1%	6.6%	11.5%	14.6%
Net margin	2.0%	22.2%	26.5%	22.8%	15.0%	4.5%	3.8%	10.7%
Current ratio	4.52×	5.06×	2.71×	2.78×	2.45×	1.89×	1.66×	2.16×
Debt / equity	0.45×	0.38×	0.43×	0.52×	0.68×	0.99×	1.09×	0.87×
Interest coverage	1.19×	28.37×	33.94×	24.87×	9.87×	2.07×	4.27×	6.7×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	1.6%	17.9%	28.1%	30.7%	22.0%	6.6%	6.4%	19.8%
Return on invested capital	0.7%	11.9%	18.5%	18.9%	13.6%	4.6%	6.7%	11.4%
Return on assets	1.0%	11.2%	16.5%	15.9%	10.5%	2.7%	2.5%	8.3%
Free cash flow yield	6.4%	4.5%	1.2%	5.9%	4.5%	3.0%	0.6%	10.9%
Earnings yield	0.5%	5.8%	6.1%	7.0%	3.5%	1.7%	2.1%	9.0%
Enterprise value	$23.6B	$27.6B	$36.9B	$27.3B	$30.7B	$15.9B	$12.7B	$8.7B
Net debt / EBITDA	1.49×	0.27×	0.27×	0.1×	0.93×	2.48×	2.67×	1.22×
Cash conversion cycle (days)	187	217	157	103	111	117	118	98