Tower Semiconductor Ltd (TSEM) fair value: what the stock is really worth
We calculate from audited financials what Tower Semiconductor Ltd is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
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Technology · US · Market cap $28.9B · ISIN IL0010823792
At a glance
TSTower Semiconductor LtdTSEM · US
Price$208.07
Fair Value$41.88
Upside−79.9%
Quality53/100
A solid business, but trading 397% above our fair value of $41.88.
As of Sep 10, 2026, the fair value of Tower Semiconductor Ltd is $41.88 per share against a price of $208.07, so the fair value sits 80% below the price. A model estimate from reported figures, not an analyst target.
!Weak Growth (revenue 5y +4.4 %/yr)
✓Solidly profitable · 15.1% net margin
!Low debt · negative free cash flow
!Mixed vs. peers (6/13)
!Moderate moat 50/100
!Evidence only low, so the estimate is less certain
Evidence: LowRange $29.59 to $52.19
Fair value as of: Sep 10, 2026
From 15 valuation models · updated yesterday
Share price −16.6% over the past month.
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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.
The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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 10, 2026.
How to read this chart
60‑month range $21.91 – $316.85 · fair‑value band $29.59 – $52.19 · the $208.07 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 10, 2026.
Tower Semiconductor Ltd (TSEM) currently trades at $208.07, while our model-based Fair Value estimate is $41.88, implying the stock looks roughly 396.8% 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 $208.07 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 low.
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 10, 2026
Scenario range: $29.59 (bear) to $52.19 (bull), the price of $208.07 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 31% below its 52-week high, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −63% fair-value upside, at −80%, TSEM screens richer than that median.
Fair Value models
Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then ($1.51 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence
Highest evidence
Residual Income best evidence$21.17$22.52$24.8976
Owner Earnings$10.64$18.14$30.9574
EPV$15.45$17.87$19.9974
All 15 models by family
DCF Models
Owner Earnings$10.64$18.14$30.9574
Earnings-Based
Graham-Dodd$13.26$58.51$80.1064
Lynch FV$15.14$21.63$28.1261
PEG = 1.0$15.14$21.63$28.1257
EPV$15.45$17.87$19.9974
Multiples
P/E Multiple$40.96$54.61$68.2763
P/S Multiple$24.87$33.16$41.4558
P/B Multiple$24.87$33.16$41.4555
EV/EBIT$31.82$42.13$52.4466
EV/EBITDA$60.30$80.09$99.8967
EV/Revenue$16.53$23.23$29.9354
Asset-Based
NCAV (Graham)$12.85$17.22$25.7054
Economic Profit
Residual Income best evidence$21.17$22.52$24.8976
ROIC Compounder$15.45$17.87$19.9972
Growth Earnings
Growth-Adj P/E$29.59$42.27$54.9567
Widest divergence: Growth Earnings ($42.27) versus Asset-Based ($17.22). Highest evidence: Residual Income (76).
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Key figures & financial health
P/E ratio86.7
P/S ratio12.2P/E × margin
EPS (TTM)$2.40price ÷ EPS = P/E 86.7
Net margin14.1%FY2025
Return on equity8.7%TTM
Return on assets (EBIT)10.1%avg 5y
More key figures
Profitability
Operating margin15.6%TTM
Growth
Revenue (TTM)$1.6BTTM
Revenue growth (YoY)+15.5%3y avg −2.3%
EPS growth (YoY)+62.9%
Balance sheet & cash flow
Free cash flow−$41.1MFY2025
Net cash$73.9MFY2025
Figures from reported company fundamentals · as of Sep 10, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality53/100
Of which business quality 54
· Market factors (momentum, volatility) 66
Profitability39
Margins and returns on capital today
Quality Growth50
Are margins and returns improving?
Cashflow45
Earnings quality: real cash, not paper profit
Fin. Strength84
Balance sheet, leverage, solvency risk
Investment26
Disciplined investing over empire-building
Low Volatility36
Calm price path (market factor)
Momentum79
Price trend over the last 3–12 months (market factor)
52W Momentum80
Distance to the 52-week high (market factor)
Net Issuance72
Buybacks instead of dilution
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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.
Growth Quality 34/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$1.6B
Latest YoY
+9.1%
Avg. revenue growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.3%
Avg. revenue growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.4%
Avg. revenue growth/yr (31Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.2%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+18.3%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+18.3%
Dividend yield0.0%
Trend ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 18.3% vs 10Y 6.4%, picking up
Operating margin (EBIT) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7.2% (2020) → 12.4% (2025) · rising
Worst earnings drop2,116% (2013) (loss year, drop beyond 100%) · in USD
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
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.
This stockSector peers
VALUE0· sector 0
FUTURE78· sector 65
PAST35· sector 24
HEALTH98· sector 96
DIVIDEND0· sector 18
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.
None of the checked exposures detected
Similar stocks
10 more Semiconductors stocks, each showing price versus our Fair Value estimate (as of Sep 10, 2026).
Is Tower Semiconductor Ltd (TSEM) overvalued or undervalued?
As of Sep 10, 2026, our model estimates a fair value of $41.88 versus a price of $208.07, about −80% upside (overvalued).
What is the fair value of TSEM?
Our model-based fair value for Tower Semiconductor Ltd is $41.88 (as of Sep 10, 2026), built from audited fundamentals. The current price: $208.07.
What is the quality score of TSEM?
Tower Semiconductor Ltd has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Tower Semiconductor Ltd (TSEM)?
Our model-based price target is the fair value of $41.88 (as of Sep 10, 2026) from 15 valuation models. Cautious scenario $29.59, optimistic scenario $52.19. It is a calculation from audited fundamentals, not an analyst target.
What is the Tower Semiconductor Ltd stock forecast for 2026?
Our models put fair value at $41.88, about −80% upside versus a price of $208.07 (overvalued). Cautious scenario $29.59, optimistic scenario $52.19. The calculation is refreshed regularly with new filings.
What is the revenue of Tower Semiconductor Ltd (TSEM)?
Tower Semiconductor Ltd reported trailing-twelve-month revenue of about $1.6B (latest available figure, as of Sep 10, 2026).
What is the net profit margin of TSEM?
The net profit margin of Tower Semiconductor Ltd is about 15.1%, meaning it keeps roughly 15.1% of revenue as net income. Based on the latest reported figures.
What is the intrinsic value of Tower Semiconductor Ltd (TSEM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tower Semiconductor Ltd it is $41.88 per share (as of Sep 10, 2026), against a price of $208.07. It is the blended result of 15 valuation models (cash flow, earnings, asset, dividend).
Is Tower Semiconductor Ltd stock overvalued or undervalued in 2026?
As of Sep 10, 2026, TSEM trades above its calculated fair value: price $208.07, fair value $41.88, a gap of about −80% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TSEM?
No. The price is what the market pays today ($208.07); the fair value is what the company's own numbers justify ($41.88). For Tower Semiconductor Ltd the two are $166.19 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tower Semiconductor Ltd worth?
The market values Tower Semiconductor Ltd at about $28.9B (market capitalisation, as of Sep 10, 2026). Per share that is $208.07; our models calculate a fair value of $41.88 per share.
What do the bullish and bearish scenarios say about TSEM?
Our models span a range for Tower Semiconductor Ltd: cautious scenario $29.59, base $41.88, optimistic $52.19 per share (as of Sep 10, 2026, price $208.07). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TSEM?
Tower Semiconductor Ltd trades at a price-to-earnings ratio of 86.7 (as of Sep 10, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $41.88 is built from several models across several years. Other multiples: PEG 6.6, P/B 9.9, P/S 17.8, EV/EBITDA 53.5.
What is the PEG ratio of TSEM?
The PEG ratio of Tower Semiconductor Ltd is 6.62 (P/E divided by earnings growth, as of Sep 10, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Tower Semiconductor Ltd (TSEM)?
Balance-sheet figures for Tower Semiconductor Ltd (as of Sep 10, 2026): return on equity 8.7%, debt of 0.05 per unit of equity. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is TSEM from its 52-week high?
Tower Semiconductor Ltd trades at $208.07, about 31% below its 52-week high of $302.86 and 455% above the low of $37.48 (as of Sep 10, 2026). Distance from the high says nothing about value: that is what the fair value of $41.88 is for.
Which stocks are comparable to Tower Semiconductor Ltd?
From the same area (Technology) we also value NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company, Broadcom Inc, SK hynix Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Tower Semiconductor Ltd stock attractive at the current price?
The data as of Sep 10, 2026: price $208.07, calculated fair value $41.88 (−80%), Quality Score 53/100, from 15 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TSEM calculated?
We run Tower Semiconductor Ltd through 15 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $41.88, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 32.6 % above its aggregate fair value. Tower Semiconductor Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on <a href="/is-it-worth-investing-now/">is it worth investing now</a>.
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Tower Semiconductor Ltd
TSEM · US