Using the industry peer median P/E multiple (trailing + forward), ON Semiconductor Corporation (ON) has a fair value of $44.24 based on 3 comparable companies in the Semiconductors industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| ON Semiconductor CorporationON | 25,330 | 212.1x | 15.4x |
| CDW CorporationCDW | 15,830 | 15.0x | 12.3x |
| Jacobs Solutions Inc.J | 15,297 | 54.4x | 18.6x |
| Tyler Technologies, Inc.TYL | 14,731 | 47.6x | 35.9x |
| Industry Median | 47.6x | 18.6x | |
| (*) Profit after tax | 121 | 1,648 | |
| Equity Value | 5,759 | 30,676 | |
| (/) Outstanding shares | 412 | 412 | |
| Fair Price | $14 | $74 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.