TSEM Relative Valuation
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. If the market price exceeds this fair value range, TSEM is overvalued; if below, it's undervalued.
Historical Valuation
Tower Semiconductor Ltd (TSEM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 43.08 is considered Overvalued compared with the five-year average of 19.37. The fair price of Tower Semiconductor Ltd (TSEM) is between 54.89 to 71.28 according to relative valuation methord. Compared to the current price of 113.63 USD , Tower Semiconductor Ltd is Overvalued By 59.42%.
Relative Value
Fair Zone
54.89-71.28
Current Price：113.63
59.42%
Overvalued
42.73
PE
1Y
3Y
5Y
Trailing
Forward
20.25
EV/EBITDA
Tower Semiconductor Ltd. (TSEM) has a current EV/EBITDA of 20.25. The 5-year average EV/EBITDA is 7.42. The thresholds are as follows: Strongly Undervalued below 3.40, Undervalued between 3.40 and 5.41, Fairly Valued between 9.43 and 5.41, Overvalued between 9.43 and 11.44, and Strongly Overvalued above 11.44. The current Forward EV/EBITDA of 20.25 falls within the Strongly Overvalued range.
40.27
EV/EBIT
Tower Semiconductor Ltd. (TSEM) has a current EV/EBIT of 40.27. The 5-year average EV/EBIT is 15.14. The thresholds are as follows: Strongly Undervalued below 7.14, Undervalued between 7.14 and 11.14, Fairly Valued between 19.13 and 11.14, Overvalued between 19.13 and 23.13, and Strongly Overvalued above 23.13. The current Forward EV/EBIT of 40.27 falls within the Strongly Overvalued range.
7.36
PS
Tower Semiconductor Ltd. (TSEM) has a current PS of 7.36. The 5-year average PS is 2.84. The thresholds are as follows: Strongly Undervalued below 1.31, Undervalued between 1.31 and 2.08, Fairly Valued between 3.60 and 2.08, Overvalued between 3.60 and 4.36, and Strongly Overvalued above 4.36. The current Forward PS of 7.36 falls within the Strongly Overvalued range.
26.52
P/OCF
Tower Semiconductor Ltd. (TSEM) has a current P/OCF of 26.52. The 5-year average P/OCF is 9.22. The thresholds are as follows: Strongly Undervalued below 3.44, Undervalued between 3.44 and 6.33, Fairly Valued between 12.11 and 6.33, Overvalued between 12.11 and 15.00, and Strongly Overvalued above 15.00. The current Forward P/OCF of 26.52 falls within the Strongly Overvalued range.
2033.99
P/FCF
Tower Semiconductor Ltd. (TSEM) has a current P/FCF of 2033.99. The 5-year average P/FCF is 102.69. The thresholds are as follows: Strongly Undervalued below -637.29, Undervalued between -637.29 and -267.30, Fairly Valued between 472.68 and -267.30, Overvalued between 472.68 and 842.67, and Strongly Overvalued above 842.67. The current Forward P/FCF of 2033.99 falls within the Strongly Overvalued range.
Tower Semiconductor Ltd (TSEM) has a current Price-to-Book (P/B) ratio of 4.59. Compared to its 3-year average P/B ratio of 1.97 , the current P/B ratio is approximately 133.38% higher. Relative to its 5-year average P/B ratio of 2.18, the current P/B ratio is about 110.21% higher. Tower Semiconductor Ltd (TSEM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.26%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.60% , the current FCF yield is about -100.00% lower.
4.56
P/B
Median3y
1.97
Median5y
2.18
0.26
FCF Yield
Median3y
3.26
Median5y
2.60
Competitors Valuation Multiple
The average P/S ratio for TSEM's competitors is , providing a benchmark for relative valuation. Tower Semiconductor Ltd Corp (TSEM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 6.79%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TSEM increased by 123.39% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.53 to 66.53.
The secondary factor is the Revenue Growth, contributed 6.79%to the performance.
Overall, the performance of TSEM in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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