Tower Semiconductor Ltd.

NasdaqGS:TSEM Stock Report

Market Cap: US$4.4b

Tower Semiconductor Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 TSEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$11.98
Fair Value
229.1% overvalued intrinsic discount
6
Number of Analysts

Below Fair Value: TSEM ($39.44) is trading above our estimate of fair value ($11.98)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TSEM. This is calculated by dividing TSEM's market cap by their current earnings.
What is TSEM's PE Ratio?
PE Ratio21.7x
EarningsUS$203.37m
Market CapUS$4.41b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TSEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average73.1x
CRUS Cirrus Logic
15.3x1.22%US$5.1b
LSCC Lattice Semiconductor
120.3x39.53%US$6.2b
QRVO Qorvo
127.2x30.89%US$7.1b
OLED Universal Display
29.7x15.75%US$6.8b
TSEM Tower Semiconductor
21.7x14.87%US$4.4b

Price-To-Earnings vs Peers: TSEM is good value based on its Price-To-Earnings Ratio (21.7x) compared to the peer average (73.1x).

Price to Earnings Ratio vs Industry

How does TSEM's PE Ratio compare vs other companies in the US Semiconductor Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
3.5xn/aUS$118.59m
SQNS Sequans Communications
0.7x-113.58%US$43.70m
CHJI China Changjiang Mining & New Energy Company
0.3xn/aUS$19.39k
MMAT.Q Meta Materials
n/an/aUS$6.00
No more companies available in this PE range
TSEM 21.7xIndustry Avg. 24.7xNo. of Companies9PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TSEM is good value based on its Price-To-Earnings Ratio (21.7x) compared to the US Semiconductor industry average (24.7x).

Price to Earnings Ratio vs Fair Ratio

What is TSEM'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.

TSEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.7x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: TSEM is expensive based on its Price-To-Earnings Ratio (21.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

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 TSEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$39.44
US$57.27
+45.20%
9.21%US$60.00US$45.59n/a6
May ’26US$36.42
US$56.35
+54.72%
9.82%US$60.00US$45.59n/a6
Apr ’26US$36.47
US$56.77
+55.65%
8.36%US$60.00US$48.10n/a6
Mar ’26US$42.50
US$56.77
+33.57%
8.36%US$60.00US$48.10n/a6
Feb ’26US$48.89
US$55.62
+13.77%
9.71%US$60.00US$48.10n/a5
Jan ’26US$51.51
US$57.50
+11.63%
7.53%US$60.00US$50.00n/a4
Dec ’25US$47.13
US$57.50
+22.00%
7.53%US$60.00US$50.00n/a4
Nov ’25US$41.94
US$53.00
+26.37%
5.50%US$55.00US$48.00n/a4
Oct ’25US$43.08
US$53.00
+23.03%
5.50%US$55.00US$48.00n/a4
Sep ’25US$44.19
US$53.00
+19.94%
5.50%US$55.00US$48.00n/a4
Aug ’25US$39.19
US$53.00
+35.24%
5.50%US$55.00US$48.00n/a4
Jul ’25US$39.67
US$47.31
+19.25%
11.93%US$55.00US$40.23n/a4
Jun ’25US$37.54
US$47.31
+26.02%
11.93%US$55.00US$40.23US$39.444
May ’25US$32.31
US$38.24
+18.35%
4.07%US$40.00US$36.00US$36.425
Apr ’25US$33.10
US$37.53
+13.39%
5.66%US$40.00US$34.00US$36.476
Mar ’25US$33.62
US$37.56
+11.72%
6.20%US$40.00US$34.00US$42.505
Feb ’25US$28.68
US$34.21
+19.29%
12.76%US$40.00US$28.00US$48.894
Jan ’25US$30.52
US$34.21
+12.10%
12.76%US$40.00US$28.00US$51.514
Dec ’24US$27.64
US$33.21
+20.16%
9.75%US$36.00US$28.00US$47.134
Nov ’24US$23.01
US$34.75
+51.02%
7.44%US$38.00US$31.00US$41.944
Oct ’24US$24.56
US$34.33
+39.79%
8.35%US$38.00US$31.00US$43.083
Sep ’24US$29.96
US$34.33
+14.62%
8.35%US$38.00US$31.00US$44.193
Aug ’24US$37.93
US$48.67
+28.31%
12.59%US$53.00US$40.00US$39.193
Jul ’24US$37.52
US$50.33
+34.15%
7.49%US$53.00US$45.00US$39.673
Jun ’24US$38.88
US$50.33
+29.46%
7.49%US$53.00US$45.00US$37.543
AnalystConsensusTarget
Consensus Narrative from 6 Analysts
US$57.27
Fair Value
31.1% 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 Analysis2025/06/02 03:37
End of Day Share Price 2025/05/30 00:00
Earnings2025/03/31
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