Enterprise Value to EBITDA (EV/EBITDA)
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- Income Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
ON Semiconductor Corp., EBITDA calculation
US$ in thousands
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).
- Net Income Attributable to ON Semiconductor Corporation
- The net income increased steadily over the five-year period. Starting at 211.7 million USD in 2019, it rose moderately to 234.2 million USD in 2020, then saw a substantial jump to approximately 1.01 billion USD in 2021. This growth trend continued, reaching 1.90 billion USD in 2022 and further increasing to 2.18 billion USD in 2023. The pattern indicates strong profitability improvements, especially after 2020.
- Earnings Before Tax (EBT)
- EBT demonstrated a fluctuating yet overall upward trend. It decreased from 276.6 million USD in 2019 to 176.6 million USD in 2020, indicating some volatility or challenges during that period. However, the figure rebounded sharply to 1.16 billion USD in 2021, then more than doubled to 2.36 billion USD in 2022 and increased further to 2.54 billion USD in 2023. This suggests effective cost management or revenue growth contributing to pre-tax profitability recovery and expansion.
- Earnings Before Interest and Tax (EBIT)
- EBIT followed a similar trajectory to EBT, but at consistently higher levels due to interest exclusion. It declined from 424.9 million USD in 2019 to 345.0 million USD in 2020, then surged significantly to 1.29 billion USD in 2021. The upward momentum persisted with EBIT reaching 2.46 billion USD in 2022 and 2.61 billion USD in 2023. This confirms a sustained improvement in operational profitability and efficient management of operating expenses.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA exhibited a strong growth pattern overall, although it dipped from 1.02 billion USD in 2019 to 970.1 million USD in 2020. Following this, it rose sharply to 1.88 billion USD in 2021, then increased steadily to 3.01 billion USD in 2022 and 3.22 billion USD in 2023. The continuous increase in EBITDA indicates enhanced cash-generating ability and operational efficiency despite initial setbacks in 2020.
- Summary of Trends
- The data reflects a temporary decline or stagnation in profitability metrics in 2020, which may correspond to external economic conditions or sector-specific challenges. Post-2020, all earnings measures—net income, EBT, EBIT, and EBITDA—show robust and consistent growth through 2023. This trend signifies improved operational performance and successful financial management contributing to higher earnings and stronger financial health over the latest three years.
Enterprise Value to EBITDA Ratio, Current
ON Semiconductor Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | |
| Analog Devices Inc. | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Micron Technology Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | |
| EV/EBITDA, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
ON Semiconductor Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| EV/EBITDA, Industry | ||||||
| Information Technology | ||||||
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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a consistent upward trend from 2019 to 2022, increasing from approximately $11.33 billion to $35.06 billion. This growth reflects a substantial expansion of the company's overall valuation during this period. However, in 2023, there was a slight reduction in enterprise value to around $34.05 billion, marking a moderate decline after several years of increase.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed some fluctuation with an initial decrease between 2019 and 2020, dropping from about $1.02 billion to $970 million. Subsequently, the company experienced significant improvement with EBITDA rising sharply in 2021 to nearly $1.88 billion and continuing to increase through 2022 and 2023, reaching approximately $3.22 billion by the end of 2023. This pattern indicates improving operational profitability over the latter years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio peaked in 2020 at 20.27, reflecting a relatively high enterprise value compared to EBITDA during that year. Following this peak, the ratio steadily declined over the next three years, reaching 10.57 in 2023. This decline suggests that EBITDA growth has outpaced increases in enterprise value, indicating potentially improved valuation multiples and better earnings generation relative to the company's valuation.