Is ON Semiconductor Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ON Semiconductor Corp. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company appears overvalued at this time, with a P/E ratio of 23, which is significantly lower than its peer Microchip Technology, Inc. at 25.65, and an EV to EBITDA ratio of 14.88 compared to the industry average. Additionally, the Price to Book Value stands at 3.67, suggesting that the stock may be trading at a premium relative to its book value.
In terms of performance, ON Semiconductor has shown a mixed return profile; while it outperformed the S&P 500 in the short term with a 14.84% return over the past week compared to 1.70%, it has underperformed significantly over longer periods, with a year-to-date return of -16.69% versus the S&P 500's 13.30%. This discrepancy reinforces the notion that the stock may be overvalued given its recent performance relative to the broader market.