ON Semiconductor Corp., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to ON Semiconductor Corporation	2,183,700)	1,902,200)	1,009,600)	234,200)	211,700)
Net income attributable to non-controlling interest	1,900)	1,600)	1,600)	2,200)	2,200)
Net noncash charges	654,600)	979,700)	829,700)	646,600)	747,500)
Changes in assets and liabilities, exclusive of acquisitions and divestitures	(862,700)	(250,400)	(58,900)	1,300)	(266,700)
Net cash provided by operating activities	1,977,500)	2,633,100)	1,782,000)	884,300)	694,700)
Cash paid for interest expense, net of tax¹	63,098)	65,044)	84,594)	86,189)	75,136)
Purchase of property, plant and equipment	(1,575,600)	(1,005,000)	(444,600)	(383,600)	(534,600)
Proceeds from sale of property, plant and equipment	4,000)	59,100)	14,000)	6,300)	1,900)
Deposits (made) utilized for purchases of property, plant and equipment	36,500)	(31,000)	(47,400)	2,200)	4,600)
Finance ROU assets obtained in exchange of lease liabilities	—)	(25,400)	(22,300)	—)	—)
Free cash flow to the firm (FCFF)	505,498)	1,695,844)	1,366,294)	595,389)	241,736)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the ON Semiconductor Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	ON Semiconductor Corp. FCFF increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

ON Semiconductor Corp., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	13.80%	19.40%	12.70%	21.00%	22.70%
Interest Paid, Net of Tax
Cash paid for interest expense, before tax	73,200)	80,700)	96,900)	109,100)	97,200)
Less: Cash paid for interest expense, tax²	10,102)	15,656)	12,306)	22,911)	22,064)
Cash paid for interest expense, net of tax	63,098)	65,044)	84,594)	86,189)	75,136)

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).

¹ See details »

² 2023 Calculation
Cash paid for interest expense, tax = Cash paid for interest expense × EITR
= 73,200 × 13.80% = 10,102

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ON Semiconductor Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	28,444,679)
Free cash flow to the firm (FCFF)	505,498)
Valuation Ratio
EV/FCFF	56.27
Benchmarks
EV/FCFF, Competitors¹
Advanced Micro Devices Inc.	206.81
Analog Devices Inc.	26.68
Applied Materials Inc.	21.50
Broadcom Inc.	32.54
Intel Corp.	—
KLA Corp.	26.01
Lam Research Corp.	24.78
Micron Technology Inc.	—
NVIDIA Corp.	76.52
Qualcomm Inc.	17.07
Texas Instruments Inc.	94.01
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	106.30
EV/FCFF, Industry
Information Technology	42.27

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

ON Semiconductor Corp., historical EV/FCFF 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	34,051,230)	35,060,420)	27,134,222)	19,667,423)	11,331,972)
Free cash flow to the firm (FCFF)²	505,498)	1,695,844)	1,366,294)	595,389)	241,736)
Valuation Ratio
EV/FCFF³	67.36	20.67	19.86	33.03	46.88
Benchmarks
EV/FCFF, Competitors⁴
Advanced Micro Devices Inc.	225.41	38.82	43.41	126.98	169.58
Analog Devices Inc.	25.61	23.12	39.16	27.12	21.68
Applied Materials Inc.	17.40	19.06	26.22	22.52	18.91
Broadcom Inc.	28.53	14.74	19.47	16.54	15.04
Intel Corp.	—	—	16.94	11.08	17.39
KLA Corp.	19.99	19.05	26.29	18.70	20.92
Lam Research Corp.	17.99	24.03	24.02	25.91	9.83
Micron Technology Inc.	—	18.28	33.81	292.39	14.33
NVIDIA Corp.	142.90	78.07	69.47	41.65	27.92
Qualcomm Inc.	11.61	18.18	17.47	30.89	14.91
Texas Instruments Inc.	90.39	27.05	24.23	27.67	20.75
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	61.21	34.74	26.16	22.06	18.29
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69

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).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 34,051,230 ÷ 505,498 = 67.36

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	ON Semiconductor Corp. EV/FCFF ratio increased from 2021 to 2022 and from 2022 to 2023.

ON Semiconductor Corp. (NASDAQ:ON)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical