Tower Semiconductor TSEM
IsraelTechnology · SemiconductorsUSD
312.93 USD (+26.1%)
10 analysts
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Tower Semiconductor is a semiconductor foundry that manufactures chips for external customers in segments such as automotive, industrial, consumer, and medical, without selling its own branded products.
Key points
from its scores- ✓Good share-price trend9.8
- ✓Very solid balance sheet8.1
- ✓Strong growth7.2
- ✕Demanding valuation1.5
- ✕Little or no dividend1.5
AI analysis
bottom line, main risk, context and newsStrong momentum and growth justify some premium, but the extreme valuation and geopolitical risk of Israel limit the appeal for new entries.
Tower Semiconductor shows explosive growth (revenue +23.7%, earnings +92.7%) and solid financial health with net cash, but its valuation is extremely demanding (P/E 98.12, EV/EBITDA 44.73) and its quality is average (ROE 9.98%, gross margin 26.87%), leaving little room for error at these prices.
The biggest risk is valuation: with a P/E of 98.12 and EV/EBITDA of 44.73, any disappointment in growth or a cooling of the semiconductor cycle could trigger a severe correction, compounded by Israel's geopolitical exposure.
Context and risks
Tower Semiconductor operates in Israel, a country with moderate governance risk and structural geopolitical exposure. Its semiconductor foundry business depends on global supply chains and regional stability, adding a context risk not captured by financial metrics.
Is Tower Semiconductor stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 166% above the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 98.1 | 31.3 | +213% |
| EV / EBITDA | 44.7 | 20.4 | +119% |
| Price / book | 9.1 | 6.3 | +44% |
| Price / sales | 16.4 | 5.3 | +211% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 1.5 out of 10 (median for Technology: 5.3).
Average analyst target: 312.93 USD, +26.1% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.4 (sector 6.4), Growth 7.2 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 98.1
- Forward P/E
- 37.4
- EV / EBITDA
- 44.7
- Price / book
- 9.1
- Price / sales
- 16.4
- PEG
- 3.43
- Market cap
- 28.1B USD
- Enterprise value
- 26.7B USD
Profitability
- ROE
- 10.0%
- ROA
- 5.0%
- ROIC (approx.)
- 10.4%
- Gross margin
- 26.9%
- Operating margin
- 19.6%
- Net margin
- 16.9%
- Free cash flow
- 166.8M USD
- FCF yield
- 0.6%
- Cash conversion
- 28%
Solvency
- Total debt
- 141.7M USD
- Net debt
- −1.3B USD
- Cash
- 1.5B USD
- EBITDA
- 597.0M USD
- Net debt / EBITDA
- −2.24
- Debt / equity
- 4.61
- Current ratio
- 4.91
- Quick ratio
- 4.17
Growth
- Revenue growth
- +23.7%
- Earnings growth
- +92.7%
- EPS (TTM)
- 2.53 USD
- EPS (forward)
- 6.64 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.89
- Analyst consensus
- Strong buy (10)
- Target price
- 312.93 USD
- 52-week range
- 70.90 – 319.94
Recent news
All TSEM news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Tower Semiconductor
Is Tower Semiconductor stock cheap or expensive?
On P/E and EV / EBITDA, it trades 166% above the Technology median on average. Valuation score: 1.5 out of 10 (median for Technology: 5.3). Average analyst target: 312.93 USD, +26.1% versus the price. This is not investment advice.
What score does Tower Semiconductor get on MeridIAn Screener?
It scores 5.2 out of 10, rank 1,615 of 2,130 (better than 24% of the companies analysed). Its strongest category is Momentum (9.8) and its weakest, Valuation (1.5). Analysis of 08/10/2026.
What is Tower Semiconductor's P/E ratio?
Its P/E is 98.1: the share price equals 98.1 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 37.4.
How much is Tower Semiconductor worth on the stock market?
Its market capitalisation is 28.1B USD and its enterprise value, debt included, is 26.7B USD.
How much debt does Tower Semiconductor have?
It has more cash than debt: net cash of 1.3B USD.
Does Tower Semiconductor pay a dividend?
It pays no dividend, or almost none.
How has Tower Semiconductor stock performed over the last year?
It has risen 249.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 70.90 and 319.94 USD. Past performance does not guarantee future results.
What do analysts think of Tower Semiconductor?
10 analysts cover it; their average recommendation is “Strong buy” and their average target is 312.93 USD (+26.1% versus the price). It is an estimate, not market data.