On Semiconductor manufactures and sells semiconductor components for various electronic devices worldwide. It operates in four segments: Application Products Group, Image Sensor Group, Standard Products Group, and System Solutions Group. The company was founded in 1999 and is based in Phoenix, Arizona.
ON Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for On Semiconductor Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that On Semiconductor Corp ranked in the 7th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 96%. The most interesting components of our discounted cash flow analysis for On Semiconductor Corp ended up being:
The company's balance sheet shows it gets 68% of its capital from equity, and 32% of its capital from debt. Notably, its equity weight is greater than only 13.74% of US equities in the Technology sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.81 years, is -0.13% -- higher than just 13.66% of stocks in our DCF forecasting set.
On Semiconductor Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 15.83% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ON, try CUI, GSKY, KLIC, MFCO, and SREV.