Historical Valuation
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 19.77. The fair price of Tower Semiconductor Ltd (TSEM) is between 55.69 to 76.90 according to relative valuation methord. Compared to the current price of 119.70 USD , Tower Semiconductor Ltd is Overvalued By 55.65%.
Relative Value
Fair Zone
55.69-76.90
Current Price：119.70
55.65%
Overvalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
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 2.01 , the current P/B ratio is approximately 139.30% higher. Relative to its 5-year average P/B ratio of 2.23, the current P/B ratio is about 116.29% 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 3.14%, the current FCF yield is approximately -92.25% lower. Relative to its 5-year average FCF yield of 2.61% , the current FCF yield is about -90.68% lower.
P/B
Median3y
2.01
Median5y
2.23
FCF Yield
Median3y
3.14
Median5y
2.61
Competitors Valuation Multiple
AI Analysis for TSEM
The average P/S ratio for TSEM competitors is 9.33, providing a benchmark for relative valuation. Tower Semiconductor Ltd Corp (TSEM.O) exhibits a P/S ratio of 7.73, which is -17.21% above the industry average. Given its robust revenue growth of 6.79%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for TSEM
1Y
3Y
5Y
Market capitalization of TSEM increased by 0.00% over the past 1 year. 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 is driven by Unknown.
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Frequently Asked Questions
Is TSEM currently overvalued or undervalued?
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 19.77. The fair price of Tower Semiconductor Ltd (TSEM) is between 55.69 to 76.90 according to relative valuation methord. Compared to the current price of 119.70 USD , Tower Semiconductor Ltd is Overvalued By 55.65% .
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 55.69 to 76.90 according to relative valuation methord.
How does TSEM's valuation metrics compare to the industry average?
The average P/S ratio for TSEM's competitors is 9.33, providing a benchmark for relative valuation. Tower Semiconductor Ltd Corp (TSEM) exhibits a P/S ratio of 7.73, which is -17.21% above the industry average. Given its robust revenue growth of 6.79%, this premium appears unsustainable.
What is the current P/B ratio for Tower Semiconductor Ltd (TSEM) as of Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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.