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ON

ON Semiconductor Corp. – Semiconductor and Related Device Manufacturing
ON Semiconductor is driving energy efficient innovations, empowering customers to reduce global energy use. The company is a leading supplier of semiconductor-based solutions, offering a comprehensive portfolio of energy efficient, power management, analog, sensors, logic, timing, connectivity, discrete, SoC and custom devices. The company's products help engineers solve their unique design challenges in automotive, communications, computing, consumer, industrial, medical, aerospace and defense applications. ON Semiconductor operates a responsive, reliable, world-class supply chain and quality program, a robust compliance and ethics program, and a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe and the Asia Pacific regions.
Analysis Results
Intrinsic Value $48.95
Latest Price $62.33
Relative Value 27% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 13.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.53 1.35
2023 1.82 1.42
2024 2.16 1.5
2025 2.57 1.58
2026 3.06 1.66
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 28.5 billion. This corresponds to a present value of 13.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.52 billion. Adding in the terminal value gives a total present value of 21.2 billion.

There are presently 433.0 million outstanding shares, so the intrinsic value per share is 48.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,781,600,000
Current Cash 1,352,600,000
Current Liabilities 1,543,400,000
Current Debt 160,700,000
Non-Cash Working Capital (NCWC) 1,046,300,000
Change in NCWC 85,800,000
EBIT 1,361,900,000
Tax Provision 146,600,000
Depreciation and Amortization 596,700,000
Capital Expenditure -444,600,000
Unlevered Free Cash Flow 1,427,356,970
Current Assets 3,184,100,000
Current Cash 1,080,700,000
Current Liabilities 1,674,500,000
Current Debt 531,600,000
Non-Cash Working Capital (NCWC) 960,500,000
Change in NCWC -82,900,000
EBIT 415,200,000
Tax Provision -59,800,000
Depreciation and Amortization 625,100,000
Capital Expenditure -383,600,000
Unlevered Free Cash Flow 573,800,000
Current Assets 3,020,000,000
Current Cash 894,200,000
Current Liabilities 1,818,400,000
Current Debt 736,000,000
Non-Cash Working Capital (NCWC) 1,043,400,000
Change in NCWC 276,000,000
EBIT 632,500,000
Tax Provision 62,700,000
Depreciation and Amortization 593,100,000
Capital Expenditure -534,600,000
Unlevered Free Cash Flow 823,624,186
Current Assets 3,167,800,000
Current Cash 1,069,600,000
Current Liabilities 1,469,300,000
Current Debt 138,500,000
Non-Cash Working Capital (NCWC) 767,400,000
Change in NCWC -55,800,000
EBIT 858,300,000
Tax Provision 125,100,000
Depreciation and Amortization 508,700,000
Capital Expenditure -514,800,000
Unlevered Free Cash Flow 654,183,668
Current Assets 2,933,200,000
Current Cash 949,200,000
Current Liabilities 1,408,900,000
Current Debt 248,100,000
Non-Cash Working Capital (NCWC) 823,200,000
Change in NCWC -69,000,000
EBIT 714,800,000
Tax Provision -265,500,000
Depreciation and Amortization 481,900,000
Capital Expenditure -387,500,000
Unlevered Free Cash Flow 740,200,000
Current Assets 2,869,100,000
Current Cash 1,028,100,000
Current Liabilities 1,502,600,000
Current Debt 553,800,000
Non-Cash Working Capital (NCWC) 892,200,000
Change in NCWC 314,200,000
EBIT 271,500,000
Tax Provision -3,900,000
Depreciation and Amortization 364,100,000
Capital Expenditure -210,700,000
Unlevered Free Cash Flow 739,100,000
Current Assets 1,891,500,000
Current Cash 617,600,000
Current Liabilities 1,239,300,000
Current Debt 543,400,000
Non-Cash Working Capital (NCWC) 578,000,000
Change in NCWC 121,200,000
EBIT 274,200,000
Tax Provision 10,800,000
Depreciation and Amortization 357,600,000
Capital Expenditure -270,800,000
Unlevered Free Cash Flow 468,727,024
Current Assets 1,805,800,000
Current Cash 517,800,000
Current Liabilities 1,040,800,000
Current Debt 209,600,000
Non-Cash Working Capital (NCWC) 456,800,000
Change in NCWC 9,900,000
EBIT 269,000,000
Tax Provision -200,000
Depreciation and Amortization 268,800,000
Capital Expenditure -204,300,000
Unlevered Free Cash Flow 343,400,000
Current Assets 1,710,200,000
Current Cash 625,700,000
Current Liabilities 819,200,000
Current Debt 181,600,000
Non-Cash Working Capital (NCWC) 446,900,000
Change in NCWC 55,900,000
EBIT 251,400,000
Tax Provision 26,900,000
Depreciation and Amortization 211,800,000
Capital Expenditure -156,500,000
Unlevered Free Cash Flow 325,216,583
Current Assets 1,693,400,000
Current Cash 631,700,000
Current Liabilities 1,024,300,000
Current Debt 353,600,000
Non-Cash Working Capital (NCWC) 391,000,000
Change in NCWC 70,200,000
EBIT 198,500,000
Tax Provision 13,400,000
Depreciation and Amortization 243,600,000
Capital Expenditure -256,300,000
Unlevered Free Cash Flow 256,000,000

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