Price to Sales (P/S)
since 2005
Calculation
ON Semiconductor Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenue1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 5, 2024 | 4.02 | = | 77.59 | ÷ | 19.31 | 19.31 | = | 8,253,000 | ÷ | 427,328,652 | |
| Feb 6, 2023 | 4.17 | = | 80.40 | ÷ | 19.28 | 19.28 | = | 8,326,200 | ÷ | 431,967,907 | |
| Feb 14, 2022 | 3.76 | = | 58.66 | ÷ | 15.58 | 15.58 | = | 6,739,800 | ÷ | 432,497,822 | |
| Feb 16, 2021 | 3.28 | = | 41.85 | ÷ | 12.76 | 12.76 | = | 5,255,000 | ÷ | 411,881,071 | |
| Feb 19, 2020 | 1.56 | = | 20.90 | ÷ | 13.42 | 13.42 | = | 5,517,900 | ÷ | 411,065,636 | |
| Feb 20, 2019 | 1.57 | = | 22.59 | ÷ | 14.35 | 14.35 | = | 5,878,300 | ÷ | 409,710,366 | |
| Feb 21, 2018 | 1.78 | = | 23.23 | ÷ | 13.03 | 13.03 | = | 5,543,100 | ÷ | 425,440,679 | |
| Feb 28, 2017 | 1.62 | = | 15.13 | ÷ | 9.31 | 9.31 | = | 3,906,900 | ÷ | 419,610,858 | |
| Feb 24, 2016 | 0.98 | = | 8.30 | ÷ | 8.48 | 8.48 | = | 3,495,800 | ÷ | 412,095,180 | |
| Feb 27, 2015 | 1.74 | = | 12.75 | ÷ | 7.33 | 7.33 | = | 3,161,800 | ÷ | 431,315,129 | |
| Feb 21, 2014 | 1.48 | = | 9.38 | ÷ | 6.32 | 6.32 | = | 2,782,700 | ÷ | 440,421,919 | |
| Feb 26, 2013 | 1.23 | = | 7.95 | ÷ | 6.44 | 6.44 | = | 2,894,900 | ÷ | 449,492,111 | |
| Feb 22, 2012 | 1.19 | = | 9.04 | ÷ | 7.61 | 7.61 | = | 3,442,300 | ÷ | 452,136,921 | |
| Feb 24, 2011 | 2.12 | = | 11.10 | ÷ | 5.24 | 5.24 | = | 2,313,400 | ÷ | 441,905,088 | |
| Feb 25, 2010 | 1.93 | = | 7.99 | ÷ | 4.14 | 4.14 | = | 1,768,900 | ÷ | 427,691,133 | |
| Feb 27, 2009 | 0.73 | = | 3.66 | ÷ | 4.99 | 4.99 | = | 2,054,800 | ÷ | 411,874,486 | |
| Feb 12, 2008 | 1.18 | = | 6.32 | ÷ | 5.35 | 5.35 | = | 1,566,200 | ÷ | 292,687,576 | |
| Feb 23, 2007 | 2.03 | = | 10.76 | ÷ | 5.29 | 5.29 | = | 1,531,800 | ÷ | 289,598,624 | |
| Feb 22, 2006 | 1.64 | = | 6.63 | ÷ | 4.04 | 4.04 | = | 1,260,600 | ÷ | 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 data reveals a significant shift in the market valuation of the entity over the period from 2006 to 2024, characterized by a transition from a relatively stable, low Price-to-Sales (P/S) multiple to a period of rapid valuation expansion starting in 2021.
- Share Price Evolution
- The share price exhibited moderate volatility between 2006 and 2016, fluctuating between a low of 3.66 USD in 2009 and 15.13 USD in 2017. A sustained upward trajectory began in 2017, with the price accelerating sharply after 2020. The valuation peaked at 80.40 USD in February 2023 before stabilizing slightly at 77.59 USD in February 2024.
- Sales per Share Growth
- Revenue efficiency, as measured by sales per share, demonstrated a consistent long-term growth pattern. From a baseline of 4.04 USD in 2006, sales per share increased to 19.31 USD by 2024. While there were periods of stagnation or slight decline—most notably between 2009 and 2010—the overall trend reflects a substantial increase in the volume of sales generated per outstanding share.
- Price-to-Sales (P/S) Ratio Dynamics
- For the majority of the observed period (2006–2020), the P/S ratio remained within a tight corridor, generally ranging between 0.73 and 2.12, with a frequent baseline around 1.5. However, a fundamental shift occurred in 2021, where the ratio jumped to 3.28 and continued to climb, reaching a peak of 4.17 in 2023. This suggests that the market began assigning a significantly higher premium to each dollar of revenue generated during the final four years of the data set.
- Valuation Divergence
- An analysis of the relationship between price and sales indicates that the surge in the P/S ratio since 2021 is driven more by aggressive share price appreciation than by proportional growth in sales per share. While sales per share grew steadily, the share price increased at a much faster rate, leading to a multiple expansion that nearly tripled the historical average P/S ratio.
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Comparison to Competitors
ON Semiconductor Corp., P/S, 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 | 4.02 | 11.95 | 7.31 | 5.08 | 14.46 | 3.40 | 6.47 | 4.99 | 5.92 | 4.94 | 21.33 | 3.45 | 8.26 |
| Feb 6, 2023 | 4.17 | 5.38 | 7.14 | 3.43 | 7.00 | 1.85 | 6.09 | 3.68 | 12.40 | 1.87 | 24.67 | 2.85 | 8.25 |
| Feb 14, 2022 | 3.76 | 8.76 | 12.98 | 5.63 | 9.55 | 2.66 | 7.80 | 5.62 | 10.92 | 2.83 | 20.41 | 4.62 | 8.63 |
| Feb 16, 2021 | 3.28 | 10.63 | 9.03 | 4.69 | 7.40 | 2.96 | 5.43 | 5.43 | 4.66 | 2.73 | 17.31 | 6.20 | 10.81 |
| Feb 19, 2020 | 1.56 | 8.59 | 7.06 | 3.75 | 5.62 | 4.07 | 4.74 | 3.10 | 4.47 | 2.15 | 8.05 | 3.98 | 8.54 |
| Feb 20, 2019 | 1.57 | 3.58 | 5.35 | 1.87 | 4.78 | 3.09 | 4.58 | 2.51 | 4.33 | 1.58 | 15.07 | 3.37 | 6.38 |
| Feb 21, 2018 | 1.78 | 2.28 | 6.40 | 3.82 | 6.07 | 3.39 | 4.00 | 3.25 | 3.40 | 2.30 | 8.76 | 3.54 | 6.83 |
| Feb 28, 2017 | 1.62 | 3.08 | 6.57 | 3.29 | 5.48 | 2.90 | 4.06 | 2.46 | 2.12 | 1.44 | 3.55 | 4.21 | 5.77 |
| Feb 24, 2016 | 0.98 | 0.38 | 5.49 | 2.26 | 5.69 | 2.44 | 2.93 | 2.17 | 2.08 | 1.12 | 2.68 | 3.58 | 4.06 |
| Feb 27, 2015 | 1.74 | 0.43 | 6.04 | 3.29 | 6.06 | 2.91 | 4.08 | 2.50 | 2.26 | 2.12 | 2.36 | 4.85 | 4.73 |
| Feb 21, 2014 | 1.48 | 0.51 | 5.90 | 2.66 | 5.11 | 2.34 | 3.40 | 2.10 | 1.68 | 1.94 | 1.84 | 4.74 | 3.95 |
| Feb 26, 2013 | 1.23 | 0.34 | 4.48 | 1.48 | 3.33 | 1.96 | 2.73 | 2.39 | 2.70 | 0.67 | 2.28 | 5.18 | 2.94 |
| Feb 22, 2012 | 1.19 | 0.79 | 3.32 | 1.38 | 3.01 | 2.47 | 1.90 | 1.38 | 2.83 | 0.62 | 2.94 | 5.86 | 2.78 |
| Feb 24, 2011 | 2.12 | 0.97 | 3.89 | 1.86 | 3.05 | 2.79 | 2.98 | 2.18 | 4.65 | 0.91 | 3.00 | 6.72 | 2.99 |
| Feb 25, 2010 | 1.93 | 0.99 | 4.31 | 3.58 | 2.65 | 3.28 | 3.50 | 3.47 | 1.98 | 1.21 | 1.58 | 7.03 | 2.89 |
| Feb 27, 2009 | 0.73 | 0.22 | 1.91 | 1.71 | — | 1.79 | 2.60 | 1.94 | 2.31 | 0.44 | 2.71 | 4.91 | 1.56 |
| Feb 12, 2008 | 1.18 | 0.72 | 3.67 | 2.52 | — | 3.08 | 4.24 | 1.86 | 4.75 | 1.30 | 3.31 | 7.33 | 2.99 |
| Feb 23, 2007 | 2.03 | 1.45 | 4.48 | 2.77 | — | 3.40 | 4.75 | 3.56 | 10.06 | 2.00 | 3.53 | 7.98 | 3.13 |
| Feb 22, 2006 | 1.64 | 3.34 | 5.79 | 4.36 | — | 3.11 | 4.66 | 2.66 | 7.86 | 1.76 | 2.13 | 11.70 | 3.57 |
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/S, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| ON Semiconductor Corp. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 5, 2024 | 4.02 | 8.21 |
| Feb 6, 2023 | 4.17 | 5.92 |
| Feb 14, 2022 | 3.76 | 6.36 |
| Feb 16, 2021 | 3.28 | 5.78 |
| Feb 19, 2020 | 1.56 | 4.71 |
| Feb 20, 2019 | 1.57 | 3.84 |
| Feb 21, 2018 | 1.78 | 4.12 |
| Feb 28, 2017 | 1.62 | 3.57 |
| Feb 24, 2016 | 0.98 | 2.78 |
| Feb 27, 2015 | 1.74 | 3.39 |
| Feb 21, 2014 | 1.48 | 2.97 |
| Feb 26, 2013 | 1.23 | 2.50 |
| Feb 22, 2012 | 1.19 | 2.61 |
| Feb 24, 2011 | 2.12 | 2.95 |
| Feb 25, 2010 | 1.93 | 3.36 |
| Feb 27, 2009 | 0.73 | 2.02 |
| Feb 12, 2008 | 1.18 | 3.21 |
| Feb 23, 2007 | 2.03 | 3.67 |
| Feb 22, 2006 | 1.64 | 3.95 |
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/S, long-term trends, comparison to industry (information technology)
| ON Semiconductor Corp. | Information Technology | |
|---|---|---|
| Feb 5, 2024 | 4.02 | 7.31 |
| Feb 6, 2023 | 4.17 | 6.01 |
| Feb 14, 2022 | 3.76 | 6.98 |
| Feb 16, 2021 | 3.28 | 6.11 |
| Feb 19, 2020 | 1.56 | 4.62 |
| Feb 20, 2019 | 1.57 | 4.31 |
| Feb 21, 2018 | 1.78 | 4.18 |
| Feb 28, 2017 | 1.62 | 3.46 |
| Feb 24, 2016 | 0.98 | 3.03 |
| Feb 27, 2015 | 1.74 | 3.31 |
| Feb 21, 2014 | 1.48 | 2.85 |
| Feb 26, 2013 | 1.23 | 2.88 |
| Feb 22, 2012 | 1.19 | 2.84 |
| Feb 24, 2011 | 2.12 | 3.04 |
| Feb 25, 2010 | 1.93 | 3.11 |
| Feb 27, 2009 | 0.73 | 2.38 |
| Feb 12, 2008 | 1.18 | 5.73 |
| Feb 23, 2007 | 2.03 | 5.21 |
| Feb 22, 2006 | 1.64 | 5.62 |
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).