Price to Earnings (P/E)
since 2005
Calculation
ON Semiconductor Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to ON Semiconductor Corporation1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 5, 2024 | 15.18 | = | 77.59 | ÷ | 5.11 | 5.11 | = | 2,183,700 | ÷ | 427,328,652 | |
| Feb 6, 2023 | 18.26 | = | 80.40 | ÷ | 4.40 | 4.40 | = | 1,902,200 | ÷ | 431,967,907 | |
| Feb 14, 2022 | 25.13 | = | 58.66 | ÷ | 2.33 | 2.33 | = | 1,009,600 | ÷ | 432,497,822 | |
| Feb 16, 2021 | 73.60 | = | 41.85 | ÷ | 0.57 | 0.57 | = | 234,200 | ÷ | 411,881,071 | |
| Feb 19, 2020 | 40.58 | = | 20.90 | ÷ | 0.52 | 0.52 | = | 211,700 | ÷ | 411,065,636 | |
| Feb 20, 2019 | 14.75 | = | 22.59 | ÷ | 1.53 | 1.53 | = | 627,400 | ÷ | 409,710,366 | |
| Feb 21, 2018 | 12.19 | = | 23.23 | ÷ | 1.91 | 1.91 | = | 810,700 | ÷ | 425,440,679 | |
| Feb 28, 2017 | 34.86 | = | 15.13 | ÷ | 0.43 | 0.43 | = | 182,100 | ÷ | 419,610,858 | |
| Feb 24, 2016 | 16.59 | = | 8.30 | ÷ | 0.50 | 0.50 | = | 206,200 | ÷ | 412,095,180 | |
| Feb 27, 2015 | 28.99 | = | 12.75 | ÷ | 0.44 | 0.44 | = | 189,700 | ÷ | 431,315,129 | |
| Feb 21, 2014 | 27.39 | = | 9.38 | ÷ | 0.34 | 0.34 | = | 150,800 | ÷ | 440,421,919 | |
| Feb 26, 2013 | — | = | 7.95 | ÷ | -0.20 | -0.20 | = | -90,600 | ÷ | 449,492,111 | |
| Feb 22, 2012 | 352.35 | = | 9.04 | ÷ | 0.03 | 0.03 | = | 11,600 | ÷ | 452,136,921 | |
| Feb 24, 2011 | 16.89 | = | 11.10 | ÷ | 0.66 | 0.66 | = | 290,500 | ÷ | 441,905,088 | |
| Feb 25, 2010 | 56.02 | = | 7.99 | ÷ | 0.14 | 0.14 | = | 61,000 | ÷ | 427,691,133 | |
| Feb 27, 2009 | — | = | 3.66 | ÷ | -0.92 | -0.92 | = | -380,100 | ÷ | 411,874,486 | |
| Feb 12, 2008 | 7.64 | = | 6.32 | ÷ | 0.83 | 0.83 | = | 242,200 | ÷ | 292,687,576 | |
| Feb 23, 2007 | 11.45 | = | 10.76 | ÷ | 0.94 | 0.94 | = | 272,100 | ÷ | 289,598,624 | |
| Feb 22, 2006 | 20.56 | = | 6.63 | ÷ | 0.32 | 0.32 | = | 100,600 | ÷ | 312,027,864 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of ON Semiconductor Corp. Annual Report.
The financial trajectory from 2006 to 2024 is characterized by significant volatility in earnings and subsequent fluctuations in the price-to-earnings (P/E) ratio. While the share price exhibited a long-term upward trend, escalating from 6.63 US$ to 77.59 US$, the P/E ratio demonstrated non-linear movements, reflecting periods of extreme valuation expansion and contraction driven primarily by earnings volatility.
- Earnings Volatility and Valuation Gaps
- Between 2006 and 2013, the P/E ratio experienced extreme instability. The absence of P/E values in 2009 and 2013 correlates directly with negative earnings per share (EPS), indicating periods of net losses. A notable valuation spike occurred in 2012, where the P/E ratio reached 352.35; this was not driven by a proportional surge in share price, but rather by a collapse in EPS to 0.03 US$, illustrating how marginal profitability can artificially inflate valuation ratios.
- Mid-Term Stabilization
- From 2014 to 2019, the P/E ratio entered a more stable phase, generally fluctuating between 12.19 and 34.86. During this window, share prices began a steady climb, while earnings showed moderate growth, leading to a more consistent relationship between market price and fundamental earnings performance.
- Speculative Expansion and Peak Valuation
- A sharp increase in market valuation is observed between 2020 and 2021, with the P/E ratio climbing from 40.58 to a peak of 73.60. This suggests a period of high investor optimism and growth expectations that significantly outpaced the actual earnings growth of the period, as EPS only marginally increased from 0.52 US$ to 0.57 US$.
- Recent Earnings Catch-up and Normalization
- From 2022 to 2024, a trend of valuation compression is evident despite the share price remaining at historically high levels. The P/E ratio declined from 25.13 to 15.18. This compression is attributed to a substantial increase in EPS, which rose from 2.33 US$ in 2022 to 5.11 US$ in 2024. This pattern indicates that the increase in market value has been justified by a corresponding and robust growth in actual profitability.
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Comparison to Competitors
ON Semiconductor Corp., P/E, long-term trends, comparison to competitors
| ON Semiconductor Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 5, 2024 | 15.18 | 317.27 | 27.14 | 19.63 | 36.78 | 109.27 | 20.04 | 19.26 | — | — | 131.70 | 17.07 | 22.24 |
| Feb 6, 2023 | 18.26 | 96.16 | 31.21 | 13.55 | 20.70 | 14.54 | 16.89 | 13.77 | — | 6.62 | 68.08 | 9.75 | 18.88 |
| Feb 14, 2022 | 25.13 | 45.54 | 68.31 | 22.05 | 40.73 | 10.59 | 25.97 | 21.03 | — | 13.38 | 78.54 | 17.15 | 20.38 |
| Feb 16, 2021 | 73.60 | 41.66 | 41.43 | 22.31 | 66.38 | 11.02 | 25.92 | 24.23 | 7.94 | 21.80 | 67.59 | 28.06 | 27.95 |
| Feb 19, 2020 | 40.58 | 169.62 | 31.04 | 20.25 | 47.09 | 13.91 | 18.44 | 13.64 | — | 7.98 | 22.77 | 22.03 | 24.47 |
| Feb 20, 2019 | 14.75 | 68.76 | 22.17 | 9.75 | 8.14 | 10.41 | 23.02 | 11.70 | 20.02 | 3.40 | 48.05 | — | 18.05 |
| Feb 21, 2018 | 12.19 | 282.39 | 44.94 | 16.16 | 63.27 | 22.15 | 15.04 | 15.33 | 372.92 | 9.20 | 36.34 | 31.96 | 27.77 |
| Feb 28, 2017 | 34.86 | — | 26.07 | 20.68 | — | 16.72 | 17.18 | 15.81 | — | — | 28.95 | 17.37 | 21.45 |
| Feb 24, 2016 | 16.59 | — | 27.06 | 15.88 | 28.48 | 11.85 | 22.54 | 17.37 | 17.70 | 6.25 | 19.88 | 17.18 | 17.66 |
| Feb 27, 2015 | 28.99 | — | 27.51 | 27.87 | 98.35 | 13.90 | 20.52 | 18.20 | 24.44 | 11.39 | 22.17 | 16.11 | 21.89 |
| Feb 21, 2014 | 27.39 | — | 23.06 | 78.13 | 23.31 | 12.80 | 17.82 | 66.48 | 17.31 | 14.78 | 14.02 | 17.19 | 22.29 |
| Feb 26, 2013 | — | — | 18.56 | 118.67 | 13.97 | 9.48 | 11.45 | 37.82 | 14.87 | — | 15.69 | 16.21 | 21.47 |
| Feb 22, 2012 | 352.35 | 10.61 | 11.45 | 7.52 | 12.75 | 10.29 | 7.61 | 6.16 | 11.31 | 32.47 | 41.12 | 20.59 | 17.06 |
| Feb 24, 2011 | 16.89 | 13.36 | 15.08 | 18.91 | 15.37 | 10.60 | 25.53 | 13.40 | 36.98 | 4.16 | — | 22.76 | 12.93 |
| Feb 25, 2010 | 56.02 | 17.53 | 35.03 | — | — | 26.39 | — | — | 39.76 | — | — | 46.01 | 20.53 |
| Feb 27, 2009 | — | — | 6.28 | 14.45 | — | 12.70 | 18.23 | 10.91 | — | — | 13.91 | 17.31 | 10.17 |
| Feb 12, 2008 | 7.64 | — | 18.79 | 14.37 | — | 16.91 | 21.95 | 6.95 | — | — | 22.62 | 19.70 | 15.55 |
| Feb 23, 2007 | 11.45 | — | 20.98 | 16.71 | — | 23.84 | 25.83 | 17.41 | 50.71 | 25.89 | 27.68 | 24.33 | 10.29 |
| Feb 22, 2006 | 20.56 | 118.04 | 33.33 | 25.22 | — | 13.93 | 20.83 | 13.36 | 67.90 | 45.76 | 42.67 | 30.98 | 20.56 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
ON Semiconductor Corp., P/E, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| ON Semiconductor Corp. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 5, 2024 | 15.18 | 49.31 |
| Feb 6, 2023 | 18.26 | 23.72 |
| Feb 14, 2022 | 25.13 | 25.08 |
| Feb 16, 2021 | 73.60 | 24.71 |
| Feb 19, 2020 | 40.58 | 19.59 |
| Feb 20, 2019 | 14.75 | 13.92 |
| Feb 21, 2018 | 12.19 | 24.36 |
| Feb 28, 2017 | 34.86 | 26.55 |
| Feb 24, 2016 | 16.59 | 15.22 |
| Feb 27, 2015 | 28.99 | 17.33 |
| Feb 21, 2014 | 27.39 | 17.07 |
| Feb 26, 2013 | — | 15.65 |
| Feb 22, 2012 | 352.35 | 12.72 |
| Feb 24, 2011 | 16.89 | 13.77 |
| Feb 25, 2010 | 56.02 | 55.18 |
| Feb 27, 2009 | — | 21.75 |
| Feb 12, 2008 | 7.64 | 23.45 |
| Feb 23, 2007 | 11.45 | 20.73 |
| Feb 22, 2006 | 20.56 | 20.78 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
ON Semiconductor Corp., P/E, long-term trends, comparison to industry (information technology)
| ON Semiconductor Corp. | Information Technology | |
|---|---|---|
| Feb 5, 2024 | 15.18 | 36.13 |
| Feb 6, 2023 | 18.26 | 26.99 |
| Feb 14, 2022 | 25.13 | 29.75 |
| Feb 16, 2021 | 73.60 | 30.97 |
| Feb 19, 2020 | 40.58 | 23.40 |
| Feb 20, 2019 | 14.75 | 23.17 |
| Feb 21, 2018 | 12.19 | 23.55 |
| Feb 28, 2017 | 34.86 | 19.69 |
| Feb 24, 2016 | 16.59 | 16.54 |
| Feb 27, 2015 | 28.99 | 17.14 |
| Feb 21, 2014 | 27.39 | 14.15 |
| Feb 26, 2013 | — | 14.37 |
| Feb 22, 2012 | 352.35 | 13.71 |
| Feb 24, 2011 | 16.89 | 15.08 |
| Feb 25, 2010 | 56.02 | 21.50 |
| Feb 27, 2009 | — | 15.83 |
| Feb 12, 2008 | 7.64 | 36.48 |
| Feb 23, 2007 | 11.45 | 32.07 |
| Feb 22, 2006 | 20.56 | 33.76 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).