Tower Semiconductor Ltd. (TSEM) Valuation — DCF, Graham & Comparables

Tower Semiconductor Ltd. (TSEM) — Price $166.48 (closing price, October 30, 2026) — Technology — Semiconductors — NASDAQ

Latest reported results:

Valuation dashboard for Tower Semiconductor Ltd. (TSEM) with P/E 65.80, P/B 7.01, EV/EBITDA 38.40 and dividend yield 0.00%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Technology companies.

Tower Semiconductor Ltd. operates as a prominent independent semiconductor foundry, engaged in the worldwide production and sale of analog-intensive, mixed-signal semiconductor components. The company provides a comprehensive suite of customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensors, integrated power management solutions, and MEMS.

Analysis Summary

Tower Semiconductor Ltd. reported revenue of $1.57B in the most recent fiscal year, growing at a 5-year CAGR of 4.4%. Net income reached $220.5M, with a 21.8% 5-year CAGR.

Trailing-twelve-month margins: gross margin 26.9%, operating margin 16.2%, net margin 16.9%.

At $166.48 (closing price, October 30, 2026), TSEM trades at a P/E of 65.80 and an ROE of 9.82%. Market capitalisation stands at $18.9B, placing it among large-cap names.

Balance sheet quality for TSEM: current ratio of 6.5. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio65.80
Price / Book7.01
EV / EBITDA38.40
Dividend Yield0.00%

Valuation Models

DCF Fair Value$23.00
vs Current Price-86.2%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
TSEMTower Semiconductor Ltd.$18.9B65.807.019.8%
NVDANVIDIA Corporation$4.9T25.8721.73110.1%
TSMTaiwan Semiconductor Manufacturing Company Limited$2.1T24.128.7841.2%
0YXG.LBroadcom Inc.$1.6T39.9115.3843.9%
AVGOBroadcom Inc.$1.6T41.6415.5943.9%
SKHYSK hynix Inc.$1.1T5.363.97117.0%
MUMicron Technology, Inc.$1.0T11.927.2291.8%
AMDAdvanced Micro Devices, Inc.$824.1B129.4412.2510.1%

Price

Price$166.48 (closing price, October 30, 2026)
Market Cap$18.9B
ExchangeNASDAQ
CountryIL

Profitability

Return on Equity9.82%
Return on Invested Capital7.39%
Return on Assets7.69%
Gross Margin26.87%
Operating Margin16.16%
Net Margin16.94%

Related companies: NVDA · TSM · 0YXG.L · AVGO · SKHY · MU · AMD · ASML

Explore sector: Technology · Semiconductors

More sections of TSEM: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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