Tower Semiconductor Ltd.

DB:TOW Stock Report

Market Cap: €3.6b

Tower Semiconductor Valuation

Is TOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€11.47
Fair Value
176.8% overvalued intrinsic discount
6
Number of Analysts

Below Fair Value: TOW (€31.76) is trading above our estimate of fair value (€11.47)

Significantly Below Fair Value: TOW is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TOW?

Key metric: As TOW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TOW. This is calculated by dividing TOW's market cap by their current earnings.
What is TOW's PE Ratio?
PE Ratio20x
EarningsUS$207.86m
Market CapUS$4.07b

Price to Earnings Ratio vs Peers

How does TOW's PE Ratio compare to its peers?

The above table shows the PE ratio for TOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.8x
ELG Elmos Semiconductor
8.3x-1.6%€1.1b
IFX Infineon Technologies
27.9x22.6%€39.0b
WAF Siltronic
28.6x-7.6%€1.1b
AIXA AIXTRON
14.5x8.5%€1.5b
TOW Tower Semiconductor
20x11.6%€4.1b

Price-To-Earnings vs Peers: TOW is expensive based on its Price-To-Earnings Ratio (20x) compared to the peer average (19.8x).

Price to Earnings Ratio vs Industry

How does TOW's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOW 20.0xIndustry Avg. 19.5xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TOW is expensive based on its Price-To-Earnings Ratio (20x) compared to the European Semiconductor industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is TOW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: TOW is expensive based on its Price-To-Earnings Ratio (20x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€31.76
€49.91
+57.1%
9.8%€53.14€40.38n/a6
Apr ’26€32.44
€52.47
+61.7%
8.4%€55.46€44.46n/a6
Mar ’26€40.08
€54.26
+35.4%
8.4%€57.35€45.98n/a6
Feb ’26€46.21
€53.39
+15.5%
9.7%€57.59€46.17n/a5
Jan ’26€49.13
€54.69
+11.3%
7.5%€57.07€47.56n/a4
Dec ’25€44.15
€54.69
+23.9%
7.5%€57.07€47.56n/a4
Nov ’25€38.04
€48.81
+28.3%
5.5%€50.66€44.21n/a4
Oct ’25€39.14
€48.81
+24.7%
5.5%€50.66€44.21n/a4
Sep ’25€38.82
€48.81
+25.7%
5.5%€50.66€44.21n/a4
Aug ’25€38.20
€48.81
+27.8%
5.5%€50.66€44.21n/a4
Jul ’25€36.10
€43.91
+21.6%
11.9%€51.05€37.34n/a4
Jun ’25€34.10
€43.91
+28.8%
11.9%€51.05€37.34n/a4
May ’25€30.87
€35.93
+16.4%
4.1%€37.58€33.82€31.255
Apr ’25€30.03
€34.47
+14.8%
5.7%€36.74€31.23€32.446
Mar ’25€30.80
€34.66
+12.5%
6.2%€36.91€31.38€40.085
Feb ’25€26.33
€31.13
+18.2%
12.8%€36.40€25.48€46.214
Jan ’25€27.14
€31.13
+14.7%
12.8%€36.40€25.48€49.134
Dec ’24€24.71
€30.53
+23.6%
9.7%€33.09€25.74€44.154
Nov ’24€21.50
€32.88
+52.9%
7.4%€35.96€29.33€38.044
Oct ’24€23.02
€31.58
+37.2%
8.4%€34.95€28.51€39.143
Sep ’24€27.18
€31.58
+16.2%
8.4%€34.95€28.51€38.823
Aug ’24€33.82
€44.37
+31.2%
12.6%€48.33€36.47€38.203
Jul ’24€34.01
€47.07
+38.4%
7.5%€49.56€42.08€36.103
Jun ’24€36.12
€47.07
+30.3%
7.5%€49.56€42.08€34.103
May ’24€40.64
€47.07
+15.8%
7.5%€49.56€42.08€30.873
AnalystConsensusTarget
Consensus Narrative from 6 Analysts
€47.99
Fair Value
33.8% undervalued intrinsic discount
6
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/02 21:40
End of Day Share Price 2025/05/02 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Tower Semiconductor Ltd. is covered by 18 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Cody AcreeAscendiant Capital Markets LLC
Ishan MajumdarBaptista Research
Cody AcreeBenchmark Company