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 is currently considered overvalued, with a P/E ratio of 23, which is lower than the peer average of 25.65, and an EV to EBITDA ratio of 14.88, also below the peer average of 16.175. Additionally, the Price to Book Value stands at 3.67, suggesting that the stock may be priced higher than its underlying assets would indicate.
In comparison to its peers, Microchip Technology, Inc. is classified as risky with a significantly negative P/E ratio, highlighting the volatility in the sector. Despite a strong return of 101.50% over the last five years, ON Semiconductor Corp. has underperformed against the S&P 500 with a year-to-date return of -16.69% compared to the S&P's 13.30%. This performance further reinforces the notion that the stock is currently overvalued relative to its peers and market benchmarks.