Tower Semiconductor Ltd (TSEM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 45.21 is considered Overvalued compared with the five-year average of 19.76. The fair price of Tower Semiconductor Ltd (TSEM) is between 70.85 to 95.75 according to relative valuation method. Compared to the current price of 138.59 USD , Tower Semiconductor Ltd By Overvalued By 44.74%.

Relative Value

Fair Zone

70.85-95.75

Current Price：138.59

44.74%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Tower Semiconductor Ltd (TSEM) has a current Price-to-Book (P/B) ratio of 4.82. Compared to its 3-year average P/B ratio of 1.99, the current P/B ratio is approximately 141.98% higher. Relative to its 5-year average P/B ratio of 2.23, the current P/B ratio is about 116.36% higher. Tower Semiconductor Ltd (TSEM) has a Forward Free Cash Flow (FCF) yield of approximately 0.24%. Compared to its 3-year average FCF yield of 3.12%, the current FCF yield is approximately -92.19% lower. Relative to its 5-year average FCF yield of 2.72%, the current FCF yield is about -91.05% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for TSEM competitors is 12.60, providing a benchmark for relative valuation. Tower Semiconductor Ltd Corp (TSEM.O) exhibits a P/S ratio of 7.73, which is -38.69% above the industry average. Given its robust revenue growth of 13.69%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of TSEM increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of TSEM in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is TSEM currently overvalued or undervalued?

What is Tower Semiconductor Ltd (TSEM) fair value?

TSEM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Tower Semiconductor Ltd (TSEM) is between 70.85 to 95.75 according to relative valuation method.

How does TSEM's valuation metrics compare to the industry average?

The average P/S ratio for TSEM's competitors is 12.60, providing a benchmark for relative valuation. Tower Semiconductor Ltd Corp (TSEM) exhibits a P/S ratio of 7.73, which is -38.69% above the industry average. Given its robust revenue growth of 13.69%, this premium appears unsustainable.

What is the current P/B ratio for Tower Semiconductor Ltd (TSEM) as of Mar 03 2026?

As of Mar 03 2026, Tower Semiconductor Ltd (TSEM) has a P/B ratio of 4.82. This indicates that the market values TSEM at 4.82 times its book value.

What is the current FCF Yield for Tower Semiconductor Ltd (TSEM) as of Mar 03 2026?

As of Mar 03 2026, Tower Semiconductor Ltd (TSEM) has a FCF Yield of 0.24%. This means that for every dollar of Tower Semiconductor Ltd's market capitalization, the company generates 0.24 cents in free cash flow.

What is the current Forward P/E ratio for Tower Semiconductor Ltd (TSEM) as of Mar 03 2026?

As of Mar 03 2026, Tower Semiconductor Ltd (TSEM) has a Forward P/E ratio of 45.21. This means the market is willing to pay $45.21 for every dollar of Tower Semiconductor Ltd's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Tower Semiconductor Ltd (TSEM) as of Mar 03 2026?

As of Mar 03 2026, Tower Semiconductor Ltd (TSEM) has a Forward P/S ratio of 7.73. This means the market is valuing TSEM at $7.73 for every dollar of expected revenue over the next 12 months.

TSEM Valuation