Tower Semiconductor Ltd (TSEM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Tower Semiconductor Ltd stock (TSEM) is currently trading at $188.74. Tower Semiconductor Ltd PE ratio is 93.21. Tower Semiconductor Ltd PS ratio (Price-to-Sales) is 12.98. Analyst consensus price target for TSEM is $159.29. WallStSmart rates TSEM as Underperform.
- TSEM PE ratio analysis and historical PE chart
- TSEM PS ratio (Price-to-Sales) history and trend
- TSEM intrinsic value — DCF, Graham Number, EPV models
- TSEM stock price prediction 2025 2026 2027 2028 2029 2030
- TSEM fair value vs current price
- TSEM insider transactions and insider buying
- Is TSEM undervalued or overvalued?
- Tower Semiconductor Ltd financial analysis — revenue, earnings, cash flow
- TSEM Piotroski F-Score and Altman Z-Score
- TSEM analyst price target and Smart Rating
Tower Semiconductor
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TSEM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Tower Semiconductor Ltd (TSEM)
TSEM trades 48% above its Graham fair value of $90.79, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Tower Semiconductor Ltd (TSEM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, eps growth, institutional own.. Concerns around peg ratio and return on equity. Fundamentals are solid but monitor weak areas for improvement.
Tower Semiconductor Ltd (TSEM) Key Strengths (3)
Earnings per share surging 42.60% year-over-year
73.71% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Tower Semiconductor Ltd (TSEM) Areas to Watch (7)
Very expensive relative to growth, significant premium
Very expensive at 13.0x annual revenue
Very expensive at 7.0x book value
Low profitability relative to shareholder equity
Decent operational efficiency, solid but not exceptional
Solid revenue growth at 13.70% per year
Decent profitability, keeps $14 per $100 revenue
Supporting Valuation Data
Tower Semiconductor Ltd (TSEM) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.7/10) while 7 fall into concern territory (avg 3.9/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Institutional Own., Market Cap. Growth metrics are encouraging with EPS Growth at 42.60%.
The Bear Case
The primary concerns are PEG Ratio, Price/Sales, Price/Book. Some valuation metrics including PEG Ratio (4.35), Price/Sales (12.98), Price/Book (6.97) suggest expensive pricing. Growth concerns include Revenue Growth at 13.70%, which may limit upside. Profitability pressure is visible in Return on Equity at 7.89%, Operating Margin at 16.10%, Profit Margin at 14.10%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 7.89% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 13.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (PEG Ratio, Price/Sales). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
TSEM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
TSEM's Price-to-Sales ratio of 12.98x trades 765% above its historical average of 1.5x (99th percentile), historically expensive. The current valuation is 0% below its historical high of 12.98x set in Mar 2026, and 21533% above its historical low of 0.06x in Dec 2008. Over the past 12 months, the PS ratio has expanded from ~9.0x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Tower Semiconductor Ltd (TSEM) · TECHNOLOGY › SEMICONDUCTORS
The Big Picture
Tower Semiconductor Ltd operates as a stable business with moderate growth and solid fundamentals. Revenue reached 1.6B with 14% growth year-over-year. Profit margins of 14.1% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 789.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Free cash flow is -75M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Margin expansion: can Tower Semiconductor Ltd push profit margins above 15% as the business scales?
Valuation compression risk at a P/E of 93.2x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor SEMICONDUCTORS industry trends, competitive moves, and regulatory changes that could impact Tower Semiconductor Ltd.
Bottom Line
Tower Semiconductor Ltd offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Tower Semiconductor Ltd(TSEM)
NASDAQ
TECHNOLOGY
SEMICONDUCTORS
USA
Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets mixed-signal intensive analog semiconductor devices in the United States, Japan, Asia and Europe. The company is headquartered in Migdal Haemek, Israel.