Tower Semiconductor Ltd (TSEM) fair value: what the stock is really worth
As of Oct 30, 2026: fair value (intrinsic value) of Tower Semiconductor Ltd stock $42.08, price $166, that is 74.7% below the price, quality 53 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range $21.91 – $316.85 · fair‑value band $29.46 – $54.71 · the $166.48 price screens above the $42.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 3 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 1, 2026.
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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.
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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
Stock analysis
Tower Semiconductor Ltd (TSEM) currently trades at $166.48, while our model-based Fair Value estimate is $42.08, 74.7% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $42.08 per share, and 0 of the 14 models we run sit above the $166.48 price.
Bear case: the Asset-Based group reads lowest at $11.38, and 14 of the 14 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $29.46 (bear) to $54.71 (bull), the price of $166.48 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 53/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
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.
Key figures
Market cap $20.9B Large · P/E ratio 65.8 · P/S ratio 12.2 · EPS (TTM) $2.53 · Net margin 16.9% · Return on equity 10.0% · Return on assets (EBIT) 10.1% · Operating margin 19.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (medium confidence).
What moves the price
The share trades about 47% below its 52-week high and 102% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −21% fair-value upside, at −75%, TSEM screens richer than that median.
Fair Value models
Bear$29.46Fair Value $42.08Bull$54.71
Price $166.48 · Downside -74.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.12 per share) are deliberately not added.Bear ⓘ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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.34/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+9.1%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−2.3%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.4%
Start year 2020 (pandemic). Over 10 years: +5.0% a year
Revenue growth 31 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+11.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+18.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+18.3%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘ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.18.3% vs 6.4%, picking up
Profit margin 2020 to 2025 ⓘ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% → 12%
AI conclusion: The specialty foundry gains from its silicon photonics platform serving AI data center needs yet faces negative free cash flow and a limited durable moat.
Main risk: TSMC's COUPE platform might draw customers away from Tower's open silicon photonics foundry services and compress margins on photonic integrated circuits for AI interconnects.
Bull case: Tower might strengthen its position by deepening partnerships with hyperscalers and expanding its open-platform SiPho offerings to capture more of the AI interconnect market before rivals scale alternatives.
Bear case: If TSMC's COUPE gains traction and customer concentration leads to lost volumes while patent disputes add costs, Tower's capacity expansions could face underutilization and sustained margin pressure in photonics.
Tower Semiconductor has started high-volume shipments of laser-integrated photonic chips with NewPhotonics for AI data center interconnects at 800G to 1.6T speeds. This builds on its silicon photonics platform at a time when AI workloads drive demand for energy-efficient connectivity. Our models see the stock as overvalued. Will photonics volume growth lift margins enough to close the gap, or will scaling costs and rivals limit the upside?
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Peer Groupⓘ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.Semiconductors · 366 stocks
Beats the industry median on 6/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score53 · Below median
Fair Value upside−74.7% · Bottom 25%
Profitability
Return on equity (12 months)10.0% · Above median
Return on assets6.6% · Above median
Net margin (12 months)16.9% · Above median
Operating margin (12 months)19.6% · Above median
Growth and dividend
Revenue growth (quarter YoY)23.7% · Above median
Balance sheet
Debt / equity0.05× · Below median
Valuation Multiplesvs Semiconductors median · lower = cheaper
P/E (12 months)65.8× · Pricier than median
P/B7.18× · Priciest 25%
P/S (12 months)12.20× · Priciest 25%
EV/EBITDA34.8× · Pricier than median
PEG3.43× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 100
PAST (return on equity)40· sector 27
HEALTH (low debt)98· sector 96
DIVIDEND (yield)0· sector 18
VALUE 0: the price sits above our fair-value range.
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.
Is Tower Semiconductor Ltd (TSEM) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of $42.08 versus a price of $166.48, about 75% lower (overvalued).
What is the fair value of TSEM?
Our model-based fair value for Tower Semiconductor Ltd is $42.08 (as of Nov 1, 2026), built from audited fundamentals. The current price: $166.48.
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 $42.08 (as of Nov 1, 2026) from 14 valuation models. Cautious scenario $29.46, optimistic scenario $54.71. 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 $42.08, about 75% lower versus a price of $166.48 (overvalued). Cautious scenario $29.46, optimistic scenario $54.71. 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 $1.7B (latest available figure, as of Nov 1, 2026).
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 $42.08 per share (as of Nov 1, 2026), against a price of $166.48. It is the blended result of 14 valuation models (cash flow, earnings, asset, dividend).
Is Tower Semiconductor Ltd stock overvalued or undervalued in 2026?
As of Nov 1, 2026, TSEM trades above its calculated fair value: price $166.48, fair value $42.08, a gap of about −75% (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 ($166.48); the fair value is what the company's own numbers justify ($42.08). For Tower Semiconductor Ltd the two are $124.40 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 $20.9B (market capitalisation, as of Nov 1, 2026). Per share that is $166.48; our models calculate a fair value of $42.08 per share.
What do the bullish and bearish scenarios say about TSEM?
Our models span a range for Tower Semiconductor Ltd: cautious scenario $29.46, base $42.08, optimistic $54.71 per share (as of Nov 1, 2026, price $166.48). 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 65.8 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $42.08 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2022, FY2023, FY2024 ex one-offs: 22.2. Other multiples: PEG 3.4, P/B 7.2, P/S 12.2, EV/EBITDA 34.8.
What is the PEG ratio of TSEM?
The PEG ratio of Tower Semiconductor Ltd is 3.43 (P/E divided by earnings growth, as of Nov 1, 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 Nov 1, 2026): return on equity 10.0%, 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 $166.48, about 47% below its 52-week high of $316.85 and 102% above the low of $82.45 (as of Oct 30, 2026). Distance from the high says nothing about value: that is what the fair value of $42.08 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, Micron Technology, 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 Nov 1, 2026: price $166.48, calculated fair value $42.08 (−75%), Quality Score 53/100, from 14 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 14 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 $42.08, 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 14.9 % 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 is it worth investing now.
What is the share price of Tower Semiconductor Ltd (TSEM)?
The closing price on Oct 30, 2026 was $166.48. Our model-based fair value is $42.08, about 75% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Tower Semiconductor Ltd right now?
The price sits above even our optimistic bull case ($54.71). 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. A fairly wide model range ($29.46 to $54.71) leaves room in how you read the outcome.
Key figures of Tower Semiconductor Ltd
How large is the market capitalisation of Tower Semiconductor Ltd (TSEM)?
The market capitalisation of Tower Semiconductor Ltd is $20.9B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Tower Semiconductor Ltd (TSEM)?
The price-to-sales ratio of Tower Semiconductor Ltd is 12.2 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Tower Semiconductor Ltd (TSEM)?
Earnings per share at Tower Semiconductor Ltd are $2.53 (price ÷ EPS = P/E 65.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Tower Semiconductor Ltd (TSEM)?
The net margin of Tower Semiconductor Ltd is 16.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Tower Semiconductor Ltd (TSEM)?
The return on equity (ROE) of Tower Semiconductor Ltd is 10.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Tower Semiconductor Ltd (TSEM)?
On an EBIT basis the return on assets of Tower Semiconductor Ltd is 10.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Tower Semiconductor Ltd (TSEM)?
The operating margin of Tower Semiconductor Ltd is 19.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tower Semiconductor Ltd (TSEM)?
Revenue at Tower Semiconductor Ltd is growing +23.7% versus a year earlier (3y avg −2.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Tower Semiconductor Ltd (TSEM)?
Earnings per share at Tower Semiconductor Ltd are growing +92.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Tower Semiconductor Ltd (TSEM) generate?
The free cash flow of Tower Semiconductor Ltd is −$41.1M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does Tower Semiconductor Ltd (TSEM) hold?
Tower Semiconductor Ltd holds more cash than debt, $73.9M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Nov 1, 2026