Tower Semiconductor Ltd (TSEM) Fair Value & Analysis

Technology · US · Market cap $28.9B · ISIN IL0010823792

What is Tower Semiconductor Ltd really worth?

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

• The price sits above even our optimistic bull case ($52.19). The favourable scenario is already priced in.
• Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range $21.91 – $316.85 · fair‑value band $29.59 – $52.19 · the $206.16 price screens above the $41.88 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Tower Semiconductor Ltd (TSEM) currently trades at $206.16, while our model-based Fair Value estimate is $41.88, implying the stock looks roughly 392.4% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Technology sector. Bull case: the Growth Earnings group reads highest at a median of $42.27 per share, and 0 of the 15 models we run sit above the $206.16 price. Bear case: the Asset-Based group reads lowest at $17.22, and 15 of the 15 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Tower Semiconductor Ltd generated revenue of $1.6B at a net margin of 15.1%. Revenue grew 15.5% year over year. It earns a return on equity of 8.7%. The balance sheet holds a net cash position of $73.9M. Fundamentals as of Sep 1, 2026

Our scenario range runs from $29.59 (bear case) to $52.19 (bull case); at $206.16, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 32% below its 52-week high, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −59% fair-value upside, at −80%, TSEM screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $1.47 per share, which is 3.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Widest divergence: Growth Earnings ($42.27) versus Asset-Based ($17.22). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe.

Full company description

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, wafers, and integrated power management. It also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical devices. Tower Semiconductor Ltd. was incorporated in 1993 and is headquartered in Migdal Haemek, Israel

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tower Semiconductor Ltd reported revenue of $1.6B in FY2025 versus $1.5B in FY2021, a compound +0.9%/yr. Reported net income was $220M in FY2025, compounding +10.1%/yr from FY2021.

TSEM screens 392% overvalued. Compare with NVIDIA Corporation →

Peer Group

Semiconductors · 325 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Semiconductors median · lower = cheaper

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

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