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ON Semiconductor Corporation (ON) DCF Valuation

Price is ABOVE the estimated range
$21.51
$46.07
Estimated fair value
$109.69
Today's price

Two independent models estimate ON Semiconductor Corporation's fair value between $21.51 (conservative case) and $46.07 (analyst consensus).

What would today's price require?

Growth the price assumes+16.4%/yr
Actual growth, last 5 years+23.4%/yr

$109.69 is justified only if free cash flow grows about +16.4% a year for the next decade — slower than the company has actually grown.

Current Price

$109.69

Fair-Value Range

$21.51 – $46.07

Market-Implied Growth

+16.4%/yr

vs +23.4% 5Y actual

ON DCF Fair Value Calculator

Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.

5%/yr
Historical FCF CAGR: 3Y 2.2% · 5Y 23.4% · 10Y 20.7%
10%
2.5%
10yr

Base inputs: FCF $1.2B · 0.39B shares · net debt $1.1B

Estimated Fair Value

$46.07

-58.0% vs $109.69

Current price$109.69
Analyst DCF (FMP)$21.51

Sensitivity — fair value by discount rate × terminal growth

How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $109.69; red = below. Your current case is outlined.

WACC ↓ / Terminal →1.50%2.00%2.50%3.00%3.50%
8.0%$57.92$61.03$64.71$69.12$74.52
9.0%$49.36$51.49$53.94$56.81$60.19
10.0%$42.84$44.35$46.07$48.03$50.29
11.0%$37.72$38.82$40.06$41.46$43.04
12.0%$33.58$34.42$35.34$36.36$37.50

About ON Semiconductor Corporation

ON Semiconductor Corporation operates as a global provider of sophisticated power and sensing solutions. Their cutting-edge power innovations are pivotal in modernizing various sectors: they contribute to the development of lighter, extended-range electric vehicles, underpin rapid-charging infrastructure, and bolster sustainable energy initiatives for applications such as solar arrays, industrial power systems, and energy storage. The company's operations are structured into three main divisions: the Power Solutions Group, the Advanced Solutions Group, and the Intelligent Sensing Group. ON Semiconductor offers a broad array of semiconductor products, including analog components, discrete devices, modules, and integrated circuits. These products are designed to perform numerous critical functions, such as power switching, energy conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation. Beyond these standard offerings, the firm also designs and develops specialized analog, mixed-signal, advanced logic, application-specific integrated circuits (ASICs) and standard products, radio frequency (RF) components, and integrated power management solutions, catering to a diverse range of end-market consumers. Furthermore, it provides foundry and design services specifically for government clients. The company's portfolio also encompasses advanced imaging technologies. This includes the creation of complementary metal-oxide-semiconductor (CMOS) image sensors, sophisticated image signal processors, and single photon detectors like silicon photomultipliers (SiPMs) and single-photon avalanche diode (SPAD) arrays. Additionally, ON Semiconductor produces actuator drivers essential for autofocus and image stabilization, serving a wide spectrum of end-users across numerous industries. Established in 1992, ON Semiconductor Corporation is headquartered in Phoenix, Arizona.

Scottsdale, AZ
26,400 employees
Technology / Semiconductors
Sector
Technology
Industry
Semiconductors
CEO
Hassane S. El-Khoury