Intrinsic value of ON Semiconductor - ON

Previous Close

$15.99

  Intrinsic Value

$11.02

stock screener

  Rating & Target

sell

-31%

  Value-price divergence*

+2682%

Previous close

$15.99

 
Intrinsic value

$11.02

 
Up/down potential

-31%

 
Rating

sell

 
Value-price divergence*

+2682%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ON stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 6.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  11.76
  11.80
  11.12
  10.51
  9.96
  9.46
  9.02
  8.61
  8.25
  7.93
  7.63
  7.37
  7.13
  6.92
  6.73
  6.56
  6.40
  6.26
  6.13
  6.02
  5.92
  5.83
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.40
  5.36
  5.32
Revenue, $m
  3,907
  4,368
  4,854
  5,364
  5,898
  6,456
  7,038
  7,644
  8,275
  8,931
  9,613
  10,321
  11,058
  11,823
  12,618
  13,446
  14,306
  15,202
  16,134
  17,106
  18,118
  19,174
  20,275
  21,425
  22,625
  23,879
  25,189
  26,559
  27,992
  29,492
  31,061
Variable operating expenses, $m
 
  3,711
  4,113
  4,535
  4,978
  5,440
  5,922
  6,424
  6,947
  7,490
  8,055
  8,549
  9,159
  9,793
  10,452
  11,137
  11,850
  12,592
  13,364
  14,169
  15,008
  15,882
  16,794
  17,746
  18,741
  19,779
  20,865
  22,000
  23,187
  24,429
  25,728
Fixed operating expenses, $m
 
  271
  277
  284
  291
  299
  306
  314
  322
  330
  338
  346
  355
  364
  373
  382
  392
  402
  412
  422
  433
  443
  454
  466
  478
  489
  502
  514
  527
  540
  554
Total operating expenses, $m
  3,585
  3,982
  4,390
  4,819
  5,269
  5,739
  6,228
  6,738
  7,269
  7,820
  8,393
  8,895
  9,514
  10,157
  10,825
  11,519
  12,242
  12,994
  13,776
  14,591
  15,441
  16,325
  17,248
  18,212
  19,219
  20,268
  21,367
  22,514
  23,714
  24,969
  26,282
Operating income, $m
  322
  387
  463
  544
  629
  717
  810
  906
  1,006
  1,111
  1,220
  1,426
  1,543
  1,666
  1,793
  1,926
  2,064
  2,208
  2,358
  2,515
  2,678
  2,848
  3,026
  3,212
  3,407
  3,610
  3,823
  4,045
  4,279
  4,523
  4,779
EBITDA, $m
  686
  732
  837
  947
  1,063
  1,183
  1,310
  1,441
  1,578
  1,721
  1,869
  2,023
  2,184
  2,350
  2,524
  2,704
  2,892
  3,088
  3,292
  3,505
  3,727
  3,958
  4,200
  4,453
  4,717
  4,993
  5,281
  5,583
  5,899
  6,230
  6,577
Interest expense (income), $m
  107
  132
  155
  179
  204
  231
  259
  288
  318
  349
  382
  416
  451
  487
  525
  565
  606
  649
  693
  740
  788
  838
  891
  946
  1,003
  1,062
  1,125
  1,190
  1,258
  1,329
  1,404
Earnings before tax, $m
  181
  255
  308
  365
  424
  486
  551
  618
  689
  762
  838
  1,010
  1,092
  1,178
  1,268
  1,361
  1,458
  1,559
  1,665
  1,775
  1,890
  2,010
  2,135
  2,267
  2,404
  2,548
  2,698
  2,855
  3,021
  3,194
  3,375
Tax expense, $m
  -4
  69
  83
  99
  115
  131
  149
  167
  186
  206
  226
  273
  295
  318
  342
  367
  394
  421
  449
  479
  510
  543
  577
  612
  649
  688
  728
  771
  816
  862
  911
Net income, $m
  182
  186
  225
  266
  310
  355
  402
  451
  503
  556
  612
  737
  797
  860
  925
  993
  1,064
  1,138
  1,215
  1,296
  1,380
  1,467
  1,559
  1,655
  1,755
  1,860
  1,970
  2,085
  2,205
  2,331
  2,464

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,028
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  6,924
  6,679
  7,422
  8,202
  9,018
  9,871
  10,761
  11,688
  12,653
  13,656
  14,698
  15,782
  16,908
  18,078
  19,294
  20,559
  21,875
  23,244
  24,670
  26,155
  27,703
  29,318
  31,002
  32,759
  34,595
  36,512
  38,516
  40,611
  42,802
  45,094
  47,494
Adjusted assets (=assets-cash), $m
  5,896
  6,679
  7,422
  8,202
  9,018
  9,871
  10,761
  11,688
  12,653
  13,656
  14,698
  15,782
  16,908
  18,078
  19,294
  20,559
  21,875
  23,244
  24,670
  26,155
  27,703
  29,318
  31,002
  32,759
  34,595
  36,512
  38,516
  40,611
  42,802
  45,094
  47,494
Revenue / Adjusted assets
  0.663
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
Average production assets, $m
  2,261
  2,529
  2,810
  3,106
  3,415
  3,738
  4,075
  4,426
  4,791
  5,171
  5,566
  5,976
  6,402
  6,845
  7,306
  7,785
  8,283
  8,802
  9,342
  9,904
  10,490
  11,102
  11,739
  12,405
  13,100
  13,826
  14,585
  15,378
  16,208
  17,076
  17,984
Working capital, $m
  1,366
  996
  1,107
  1,223
  1,345
  1,472
  1,605
  1,743
  1,887
  2,036
  2,192
  2,353
  2,521
  2,696
  2,877
  3,066
  3,262
  3,466
  3,679
  3,900
  4,131
  4,372
  4,623
  4,885
  5,158
  5,444
  5,743
  6,056
  6,382
  6,724
  7,082
Total debt, $m
  3,622
  3,603
  4,165
  4,754
  5,372
  6,017
  6,690
  7,390
  8,120
  8,878
  9,666
  10,485
  11,336
  12,221
  13,140
  14,097
  15,091
  16,127
  17,205
  18,327
  19,498
  20,718
  21,991
  23,320
  24,708
  26,157
  27,672
  29,256
  30,912
  32,645
  34,459
Total liabilities, $m
  5,068
  5,049
  5,611
  6,200
  6,818
  7,463
  8,136
  8,836
  9,566
  10,324
  11,112
  11,931
  12,782
  13,667
  14,586
  15,543
  16,537
  17,573
  18,651
  19,773
  20,944
  22,164
  23,437
  24,766
  26,154
  27,603
  29,118
  30,702
  32,358
  34,091
  35,905
Total equity, $m
  1,856
  1,630
  1,811
  2,001
  2,200
  2,409
  2,626
  2,852
  3,087
  3,332
  3,586
  3,851
  4,125
  4,411
  4,708
  5,016
  5,337
  5,672
  6,019
  6,382
  6,760
  7,153
  7,564
  7,993
  8,441
  8,909
  9,398
  9,909
  10,444
  11,003
  11,588
Total liabilities and equity, $m
  6,924
  6,679
  7,422
  8,201
  9,018
  9,872
  10,762
  11,688
  12,653
  13,656
  14,698
  15,782
  16,907
  18,078
  19,294
  20,559
  21,874
  23,245
  24,670
  26,155
  27,704
  29,317
  31,001
  32,759
  34,595
  36,512
  38,516
  40,611
  42,802
  45,094
  47,493
Debt-to-equity ratio
  1.952
  2.210
  2.300
  2.380
  2.440
  2.500
  2.550
  2.590
  2.630
  2.660
  2.700
  2.720
  2.750
  2.770
  2.790
  2.810
  2.830
  2.840
  2.860
  2.870
  2.880
  2.900
  2.910
  2.920
  2.930
  2.940
  2.940
  2.950
  2.960
  2.970
  2.970
Adjusted equity ratio
  0.140
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244
  0.244

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  182
  186
  225
  266
  310
  355
  402
  451
  503
  556
  612
  737
  797
  860
  925
  993
  1,064
  1,138
  1,215
  1,296
  1,380
  1,467
  1,559
  1,655
  1,755
  1,860
  1,970
  2,085
  2,205
  2,331
  2,464
Depreciation, amort., depletion, $m
  364
  345
  374
  403
  434
  466
  500
  535
  572
  610
  649
  598
  640
  685
  731
  779
  828
  880
  934
  990
  1,049
  1,110
  1,174
  1,240
  1,310
  1,383
  1,458
  1,538
  1,621
  1,708
  1,798
Funds from operations, $m
  600
  531
  599
  669
  744
  821
  902
  986
  1,074
  1,166
  1,261
  1,335
  1,438
  1,545
  1,656
  1,772
  1,893
  2,018
  2,149
  2,286
  2,429
  2,577
  2,733
  2,895
  3,065
  3,242
  3,428
  3,622
  3,826
  4,039
  4,262
Change in working capital, $m
  19
  105
  111
  116
  122
  127
  133
  138
  144
  150
  155
  162
  168
  174
  181
  189
  196
  204
  213
  221
  231
  241
  251
  262
  274
  286
  299
  312
  327
  342
  358
Cash from operations, $m
  581
  426
  488
  553
  622
  694
  769
  848
  931
  1,016
  1,105
  1,173
  1,270
  1,370
  1,475
  1,583
  1,696
  1,814
  1,937
  2,065
  2,198
  2,337
  2,482
  2,633
  2,791
  2,956
  3,129
  3,310
  3,499
  3,697
  3,904
Maintenance CAPEX, $m
  0
  -226
  -253
  -281
  -311
  -341
  -374
  -407
  -443
  -479
  -517
  -557
  -598
  -640
  -685
  -731
  -779
  -828
  -880
  -934
  -990
  -1,049
  -1,110
  -1,174
  -1,240
  -1,310
  -1,383
  -1,458
  -1,538
  -1,621
  -1,708
New CAPEX, $m
  -211
  -269
  -281
  -295
  -309
  -323
  -337
  -351
  -365
  -380
  -395
  -410
  -426
  -443
  -461
  -479
  -498
  -519
  -540
  -562
  -586
  -611
  -638
  -666
  -695
  -726
  -759
  -793
  -830
  -868
  -908
Cash from investing activities, $m
  -2,435
  -495
  -534
  -576
  -620
  -664
  -711
  -758
  -808
  -859
  -912
  -967
  -1,024
  -1,083
  -1,146
  -1,210
  -1,277
  -1,347
  -1,420
  -1,496
  -1,576
  -1,660
  -1,748
  -1,840
  -1,935
  -2,036
  -2,142
  -2,251
  -2,368
  -2,489
  -2,616
Free cash flow, $m
  -1,854
  -68
  -46
  -23
  2
  29
  59
  90
  123
  157
  194
  206
  246
  287
  330
  374
  420
  467
  517
  568
  621
  676
  734
  794
  856
  920
  988
  1,058
  1,132
  1,208
  1,288
Issuance/(repayment) of debt, $m
  2,258
  535
  561
  590
  617
  645
  673
  701
  729
  758
  788
  819
  851
  885
  920
  956
  995
  1,035
  1,078
  1,123
  1,170
  1,220
  1,273
  1,329
  1,388
  1,450
  1,515
  1,584
  1,656
  1,733
  1,814
Issuance/(repurchase) of shares, $m
  30
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,265
  535
  561
  590
  617
  645
  673
  701
  729
  758
  788
  819
  851
  885
  920
  956
  995
  1,035
  1,078
  1,123
  1,170
  1,220
  1,273
  1,329
  1,388
  1,450
  1,515
  1,584
  1,656
  1,733
  1,814
Total cash flow (excl. dividends), $m
  411
  467
  515
  566
  619
  674
  731
  791
  852
  916
  982
  1,026
  1,097
  1,172
  1,249
  1,330
  1,414
  1,503
  1,595
  1,691
  1,791
  1,897
  2,007
  2,122
  2,243
  2,370
  2,503
  2,642
  2,788
  2,941
  3,102
Retained Cash Flow (-), $m
  -248
  -170
  -181
  -190
  -199
  -208
  -217
  -226
  -235
  -245
  -254
  -264
  -275
  -286
  -297
  -309
  -321
  -334
  -348
  -362
  -378
  -394
  -411
  -429
  -448
  -468
  -489
  -511
  -535
  -559
  -585
Prev. year cash balance distribution, $m
 
  397
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  693
  334
  376
  420
  466
  514
  564
  617
  671
  727
  761
  822
  886
  952
  1,021
  1,093
  1,168
  1,247
  1,328
  1,414
  1,503
  1,596
  1,693
  1,795
  1,902
  2,014
  2,131
  2,253
  2,382
  2,517
Discount rate, %
 
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.18
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.20
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.37
  29.79
  31.28
PV of cash for distribution, $m
 
  644
  287
  295
  300
  300
  295
  286
  274
  257
  239
  211
  190
  168
  146
  125
  105
  86
  69
  55
  42
  32
  23
  17
  12
  8
  5
  3
  2
  1
  1
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. Its Application Products Group segment provides analog, mixed-signal, and advanced logic application specific integrated circuit and application specific standard product solutions; and solutions for voltage and current options, as well as foundry and manufacturing services, including integrated passive devices technology, integrated circuit (IC) design, packaging, and silicon technology offerings. The company’s Image Sensor Group segment offers complementary metal oxide semiconductor and charge-coupled device image sensors, proximity sensors, and image signal processors. Its Standard Products Group segment provides discrete and integrated semiconductor products that perform application functions, such as power switching, signal conditioning, circuit protection, signal amplification, and voltage reference; and develops lower capacitance protection and integrated signal conditioning products to support data transmission rates, micro packages, and switching and rectification technologies. The company’s System Solutions Group segment supplies analog and mixed signal ICs, digital signal processors, analog and digital tuners, intelligent power modules, and memory and discrete semiconductors. ON Semiconductor Corporation’s devices are used in various end-products, such as automotive electronics, smartphones, media tablets, wearable electronics, computers, servers, industrial building and home automation systems, consumer white goods, imaging systems, LED lighting, power supplies, networking and telecom equipment, medical diagnostics, imaging and hearing health, and sensor networks, as well as the Internet-of-Things. The company serves original equipment manufacturers, distributors, and electronic manufacturing service providers. ON Semiconductor Corp. was founded in 1999 and is headquartered in Phoenix, Arizona.

FINANCIAL RATIOS  of  ON Semiconductor (ON)

Valuation Ratios
P/E Ratio 36.8
Price to Sales 1.7
Price to Book 3.6
Price to Tangible Book
Price to Cash Flow 11.5
Price to Free Cash Flow 18.1
Growth Rates
Sales Growth Rate 11.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -22.1%
Cap. Spend. - 3 Yr. Gr. Rate 6.4%
Financial Strength
Quick Ratio 2
Current Ratio 0.1
LT Debt to Equity 165.3%
Total Debt to Equity 195.2%
Interest Coverage 3
Management Effectiveness
Return On Assets 5.4%
Ret/ On Assets - 3 Yr. Avg. 5.8%
Return On Total Capital 4.3%
Ret/ On T. Cap. - 3 Yr. Avg. 6.2%
Return On Equity 10.5%
Return On Equity - 3 Yr. Avg. 11.8%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 33.2%
Gross Margin - 3 Yr. Avg. 33.9%
EBITDA Margin 16.7%
EBITDA Margin - 3 Yr. Avg. 16.5%
Operating Margin 8.2%
Oper. Margin - 3 Yr. Avg. 7.6%
Pre-Tax Margin 4.6%
Pre-Tax Margin - 3 Yr. Avg. 5.7%
Net Profit Margin 4.7%
Net Profit Margin - 3 Yr. Avg. 5.5%
Effective Tax Rate -2.2%
Eff/ Tax Rate - 3 Yr. Avg. 0.9%
Payout Ratio 0%

ON stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ON stock intrinsic value calculation we used $3907 million for the last fiscal year's total revenue generated by ON Semiconductor. The default revenue input number comes from 2016 income statement of ON Semiconductor. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ON stock valuation model: a) initial revenue growth rate of 11.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.6%, whose default value for ON is calculated based on our internal credit rating of ON Semiconductor, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of ON Semiconductor.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ON stock the variable cost ratio is equal to 85.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $264 million in the base year in the intrinsic value calculation for ON stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.3% for ON Semiconductor.

Corporate tax rate of 27% is the nominal tax rate for ON Semiconductor. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ON stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ON are equal to 57.9%.

Life of production assets of 10 years is the average useful life of capital assets used in ON Semiconductor operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ON is equal to 22.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1856 million for ON Semiconductor - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 406.393 million for ON Semiconductor is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of ON Semiconductor at the current share price and the inputted number of shares is $6.5 billion.

RELATED COMPANIES Price Int.Val. Rating
TXN Texas Instrume 80.15 77.91  hold
DIOD Diodes 26.75 10.02  str.sell
SMTC Semtech 36.05 120.94  str.buy
NXPI NXP Semiconduc 112.47 81.79  sell
MXIM Maxim Integrat 43.99 15.99  str.sell
STM STMicroelectro 16.59 4.10  str.sell
VSH Vishay Interte 16.90 53.00  str.buy

COMPANY NEWS

▶ Highlights From ON Semiconductor's Q2 2017 Report   [Aug-10-17 09:34PM  Motley Fool]
▶ ON Semiconductor reports whopping jump in profit, sales thanks to healthy sector   [Aug-09-17 12:47PM  American City Business Journals]
▶ 3 Reasons Why Nvidia Isn't Priced For Perfection   [Aug-07-17 01:00PM  Barrons.com]
▶ ON Semiconductor Reports Second Quarter 2017 Results   [Aug-06-17 03:00PM  Business Wire]
▶ BrainChip Holdings Ltd Appoints New Director   [Jul-10-17 02:06AM  Marketwired]
▶ Top Ranked Value Stocks to Buy for June 30th   [Jun-30-17 09:34AM  Zacks]
▶ Top Ranked Growth Stocks to Buy for June 28th   [Jun-28-17 10:55AM  Zacks]
▶ Top Ranked Growth Stocks to Buy for June 26th   [Jun-26-17 09:44AM  Zacks]
▶ Top Ranked Value Stocks to Buy for June 12th   [Jun-12-17 10:33AM  Zacks]
▶ Hot Tech Stocks Breaking Higher   [01:00PM  Investopedia]
▶ Company News for May 09, 2017   [May-09-17 10:06AM  Zacks]
▶ Micron Technology Downgraded; ON Semiconductor Beats Q1 Views   [May-08-17 04:10PM  Investor's Business Daily]
▶ Chip Stocks And Semiconductor Industry News   [01:02PM  Investor's Business Daily]
▶ ON Semiconductor Reports First Quarter 2017 Results   [May-07-17 03:00PM  Business Wire]
▶ Top Ranked Value Stocks to Buy for April 12th   [Apr-12-17 10:50AM  Zacks]
▶ Top 10 Stocks Under $20   [Apr-06-17 03:55PM  Zacks]
▶ ON Semiconductor Takes a Leading Position within APEC 2017   [Mar-23-17 06:03PM  Business Wire]
Stock chart of ON Financial statements of ON
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.