Tower Semiconductor Ltd (TSEM) Fair Value & Analysis
Technology · US · Market cap $28.9B
Tower Semiconductor Ltd
TSEM · US
Fair value as of: Jul 16, 2026
From 15 valuation models · updated 25 days ago
Fair value updated Jul 16, 2026, revised from $34.70 to $33.16 (−4.4%) since Jun 24, 2026. Share price +16.5% over the past month.
A solid business, but screening 87% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($41.45). 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 Jul 16, 2026.
How to read this chart
60‑month range $21.91 – $316.85 · fair‑value band $24.25 – $41.45 · the $252.49 price screens above the $33.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.
Analysis
Tower Semiconductor Ltd (TSEM) currently trades at $252.49, while our model-based Fair Value estimate is $33.16, implying the stock looks roughly 86.9% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: 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 Jul 16, 2026
Our scenario range runs from $24.25 (bear case) to $41.45 (bull case); at $252.49, 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 17% below its 52-week high, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -67% fair-value upside, at -87%, TSEM screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.
All 15 models by family
Widest divergence: Growth Earnings ($34.64) versus Asset-Based ($17.22). Highest evidence: Residual Income (76).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 54 · Market factors (momentum, volatility) 73
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.
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 87% overvalued. Compare with NVIDIA Corporation →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Tower Semiconductor Ltd (TSEM) (Q2 2026) Earnings Call Highlights: Record Revenue and Strategic ...
- TSEM: Tower Semiconductor Continues to Exceed Expectations as it Fills Insatiable Demand
- Tower Semiconductor tops second quarter earnings and revenue expectations
- Tower Semiconductor Beats Second-Quarter Estimates and Issues Strong Q3 Revenue Outlook
Peer Group
Semiconductors · 319 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
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.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Semiconductors stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| NVIDIA Corporation NVDA | $211.80 | $96.91 | -54% |
| Taiwan Semiconductor Manufacturing Company TSM | $398.37 | $207.49 | -48% |
| Broadcom Inc 1AVGO | €367.75 | €121.25 | -67% |
| Micron Technology, Inc ZMIC | C$52.57 | C$7.50 | -86% |
| SK hynix Inc 000660 | 2,082,000 KRW | 1,109,311 KRW | -47% |
| Advanced Micro Devices, Inc 1AMD | €425.20 | €56.33 | -87% |
| Intel Corporation INTC | C$68.40 | C$9.82 | -86% |
| Texas Instruments Incorporated TXN | $311.46 | $59.75 | -81% |
| MediaTek Inc 2454 | 3,740 TWD | 1,163 TWD | -69% |
| SK Square Co 402340 | 1,212,000 KRW | 868,000 KRW | -28% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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