Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)
Interest Paid, Net of Tax
EV to FCFF Ratio, Current
EV to FCFF Ratio, Historical

Free Cash Flow to The Firm (FCFF)

ON Semiconductor Corp., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income attributable to ON Semiconductor Corporation	1,902,200)	1,009,600)	234,200)	211,700)	627,400)
Net income attributable to non-controlling interest	1,600)	1,600)	2,200)	2,200)	2,500)
Net noncash charges	979,700)	829,700)	646,600)	747,500)	714,000)
Changes in assets and liabilities, exclusive of acquisitions and divestitures	(250,400)	(58,900)	1,300)	(266,700)	(69,700)
Net cash provided by operating activities	2,633,100)	1,782,000)	884,300)	694,700)	1,274,200)
Cash paid for interest expense, net of tax¹	65,044)	84,594)	86,189)	75,136)	66,720)
Purchase of property, plant and equipment	(1,005,000)	(444,600)	(383,600)	(534,600)	(514,800)
Proceeds from sale of property, plant and equipment	59,100)	14,000)	6,300)	1,900)	36,500)
Deposits (made) utilized for purchases of property, plant and equipment	(31,000)	(47,400)	2,200)	4,600)	4,100)
Finance ROU assets obtained in exchange of lease liabilities	(25,400)	(22,300)	—)	—)	—)
Free cash flow to the firm (FCFF)	1,695,844)	1,366,294)	595,389)	241,736)	866,720)

Based on: 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).

¹ See details »

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 2020 to 2021 and from 2021 to 2022.

Interest Paid, Net of Tax

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

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	19.40%	12.70%	21.00%	22.70%	16.60%
Interest Paid, Net of Tax
Cash paid for interest expense, before tax	80,700)	96,900)	109,100)	97,200)	80,000)
Less: Cash paid for interest expense, tax²	15,656)	12,306)	22,911)	22,064)	13,280)
Cash paid for interest expense, net of tax	65,044)	84,594)	86,189)	75,136)	66,720)

Based on: 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).

¹ See details »

² 2022 Calculation
Cash paid for interest expense, tax = Cash paid for interest expense × EITR
= 80,700 × 19.40% = 15,656

Enterprise Value to FCFF Ratio, Current

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	35,889,798)
Free cash flow to the firm (FCFF)	1,695,844)
Valuation Ratio
EV/FCFF	21.16
Benchmarks
EV/FCFF, Competitors¹
Advanced Micro Devices Inc.	48.57
Analog Devices Inc.	26.68
Applied Materials Inc.	22.28
Broadcom Inc.	16.74
First Solar Inc.	—
Intel Corp.	—
KLA Corp.	18.79
Lam Research Corp.	27.04
Micron Technology Inc.	21.10
NVIDIA Corp.	170.57
Qualcomm Inc.	20.37
Texas Instruments Inc.	27.60
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	38.35
EV/FCFF, Industry
Information Technology	28.35

Based on: 10-K (reporting date: 2022-12-31).

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.

Enterprise Value to FCFF Ratio, Historical

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

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	35,060,420)	27,134,222)	19,667,423)	11,331,972)	10,974,357)
Free cash flow to the firm (FCFF)²	1,695,844)	1,366,294)	595,389)	241,736)	866,720)
Valuation Ratio
EV/FCFF³	20.67	19.86	33.03	46.88	12.66
Benchmarks
EV/FCFF, Competitors⁴
Advanced Micro Devices Inc.	38.82	43.41	126.98	169.58	—
Analog Devices Inc.	23.12	39.16	27.12	21.68	16.04
Applied Materials Inc.	19.06	26.22	22.52	18.91	9.96
Broadcom Inc.	14.74	19.47	16.54	15.04	13.02
First Solar Inc.	—	—	—	—	—
Intel Corp.	—	16.94	11.08	17.39	15.50
KLA Corp.	19.05	26.29	18.70	20.92	14.15
Lam Research Corp.	24.03	24.02	25.91	9.83	10.36
Micron Technology Inc.	18.28	33.81	292.39	14.33	5.37
NVIDIA Corp.	78.07	69.47	41.65	27.92	47.71
Qualcomm Inc.	18.20	17.47	30.89	14.91	22.53
Texas Instruments Inc.	27.05	24.23	27.67	20.75	16.49
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	35.05	26.37	22.31	18.50	15.89
EV/FCFF, Industry
Information Technology	26.63	28.03	26.16	21.64	18.26

Based on: 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).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 35,060,420 ÷ 1,695,844 = 20.67

⁴ Click competitor name to see calculations.

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 decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

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