Tower Semiconductor Ltd. (TSEM) Financial Ratios
30 years of historical data (1996–2025) · Technology · Semiconductors
EV/EBITDA
↑
65.78
↑+437% vs avg
5yr avg: 12.26
30Y Low2.3·High99.8
P/FCF
↑
N/A
—
5yr avg: 136.58
30Y Low12.5·High40.5
P/B Ratio
↑
11.21
↑+318% vs avg
5yr avg: 2.68
30Y Low0.2·High4.6
ROE
↓
8.0%
↑-39% vs avg
5yr avg: 13.0%
30Y Low-295%·High38%
Debt/EBITDA
↓
0.32
↓-25% vs avg
5yr avg: 0.44
30Y Low0.3·High12.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TSEM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Tower Semiconductor Ltd. trades at 147.8x earnings, 421% above its 5-year average of 28.4x, sitting at the 92nd percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a premium of 410%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $32.8B | $13.3B | $5.8B | $3.4B | $4.8B | $4.4B | $2.8B | $2.6B | $1.5B | $3.6B | $1.9B |
| Enterprise Value | $32.7B | $13.3B | $5.7B | $3.4B | $4.7B | $4.5B | $3.0B | $2.5B | $1.4B | $3.5B | $1.9B |
| P/E Ratio → | 147.80 | 60.53 | 27.84 | 6.55 | 18.08 | 28.96 | 33.97 | 28.64 | 11.17 | 11.75 | 9.11 |
| P/S Ratio | 20.93 | 8.52 | 4.03 | 2.39 | 2.85 | 2.89 | 2.21 | 2.09 | 1.16 | 2.60 | 1.54 |
| P/B Ratio | 11.21 | 4.59 | 2.19 | 1.40 | 2.53 | 2.70 | 1.93 | 1.92 | 1.22 | 3.51 | 2.82 |
| P/FCF | — | — | 461.87 | 14.63 | 29.28 | 40.53 | — | 25.87 | 14.71 | 21.50 | 17.53 |
| P/OCF | 82.90 | 33.73 | 12.90 | 5.02 | 9.03 | 10.34 | 10.13 | 8.87 | 4.83 | 10.15 | 5.89 |
P/E links to full P/E history page with 30-year chart
TSEM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Tower Semiconductor Ltd.'s enterprise value stands at 65.8x EBITDA, 437% above its 5-year average of 12.3x. The Technology sector median is 16.7x, placing the stock at a 295% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.47 | 3.97 | 2.37 | 2.81 | 2.96 | 2.35 | 2.06 | 1.07 | 2.52 | 1.53 |
| EV / EBITDA | 65.78 | 26.67 | 12.45 | 4.18 | 7.80 | 10.20 | 8.99 | 8.44 | 3.77 | 8.17 | 5.14 |
| EV / EBIT | 168.47 | 68.31 | 30.78 | 5.71 | 15.84 | 27.47 | 31.22 | 25.97 | 8.99 | 16.32 | 8.57 |
| EV / FCF | — | — | 454.60 | 14.50 | 28.86 | 41.50 | — | 25.43 | 13.57 | 20.83 | 17.43 |
TSEM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Tower Semiconductor Ltd. earns an operating margin of 12.4%. Operating margins have compressed from 38.5% to 12.4% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 8.0% is modest. ROIC of 5.4% represents adequate returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.2% | 23.2% | 23.6% | 24.8% | 27.8% | 21.8% | 18.4% | 18.6% | 22.5% | 25.5% | 24.3% |
| Operating Margin | 12.4% | 12.4% | 13.3% | 38.5% | 18.6% | 11.0% | 7.2% | 7.0% | 11.9% | 15.8% | 14.0% |
| Net Profit Margin | 14.1% | 14.1% | 14.5% | 36.4% | 15.8% | 9.9% | 6.5% | 7.3% | 10.4% | 21.5% | 16.3% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.0% | 8.0% | 8.2% | 24.0% | 15.1% | 9.8% | 5.9% | 7.0% | 12.0% | 34.8% | 38.2% |
| ROA | 6.9% | 6.9% | 6.9% | 19.0% | 11.1% | 6.9% | 4.1% | 4.8% | 7.8% | 19.5% | 17.4% |
| ROIC | 5.4% | 5.4% | 5.8% | 19.5% | 13.2% | 7.4% | 4.7% | 5.4% | 11.4% | 20.7% | 22.4% |
| ROCE | 6.6% | 6.6% | 7.0% | 22.8% | 15.1% | 8.8% | 5.2% | 5.3% | 10.5% | 17.6% | 18.6% |
TSEM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Tower Semiconductor Ltd. carries a Debt/EBITDA ratio of 0.3x, which is very conservative (89% below the sector average of 2.9x). The company holds a net cash position — cash of $235M exceeds total debt of $162M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.06 | 0.06 | 0.07 | 0.10 | 0.14 | 0.19 | 0.27 | 0.23 | 0.22 | 0.33 | 0.50 |
| Debt / EBITDA | 0.32 | 0.32 | 0.40 | 0.29 | 0.45 | 0.72 | 1.18 | 1.04 | 0.72 | 0.78 | 0.92 |
| Net Debt / Equity | — | -0.03 | -0.03 | -0.01 | -0.04 | 0.06 | 0.12 | -0.03 | -0.10 | -0.11 | -0.02 |
| Net Debt / EBITDA | -0.15 | -0.15 | -0.20 | -0.04 | -0.11 | 0.24 | 0.54 | -0.15 | -0.32 | -0.26 | -0.03 |
| Debt / FCF | — | — | -7.27 | -0.13 | -0.42 | 0.97 | — | -0.44 | -1.15 | -0.66 | -0.10 |
| Interest Coverage | — | — | 31.57 | 132.60 | 52.34 | 13.89 | 5.94 | 8.17 | 6.77 | 16.98 | 12.91 |
Net cash position: cash ($235M) exceeds total debt ($162M)
TSEM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Tower Semiconductor Ltd.'s current ratio of 6.48x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 5.51x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 6.17x to 6.48x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 6.48 | 6.48 | 6.18 | 6.17 | 3.86 | 4.33 | 4.04 | 4.30 | 4.85 | 2.89 | 2.82 |
| Quick Ratio | 5.51 | 5.51 | 5.23 | 5.15 | 3.08 | 3.48 | 3.31 | 3.54 | 4.01 | 2.42 | 2.27 |
| Cash Ratio | 4.37 | 4.37 | 4.27 | 4.46 | 2.60 | 2.76 | 2.60 | 2.95 | 3.15 | 1.85 | 1.58 |
| Asset Turnover | — | 0.47 | 0.47 | 0.49 | 0.66 | 0.68 | 0.60 | 0.64 | 0.73 | 0.83 | 0.91 |
| Inventory Turnover | 4.68 | 4.68 | 4.09 | 3.78 | 4.01 | 5.03 | 5.18 | 5.22 | 5.92 | 7.21 | 6.88 |
| Days Sales Outstanding | — | 51.93 | 61.19 | 46.23 | 38.61 | 38.97 | 53.84 | 41.62 | 44.06 | 39.38 | 45.47 |
TSEM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Tower Semiconductor Ltd. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 0.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | 0.1% | 0.1% |
| Payout Ratio | — | — | — | — | — | — | — | — | — | 1.5% | 1.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.7% | 1.7% | 3.6% | 15.3% | 5.5% | 3.5% | 2.9% | 3.5% | 9.0% | 8.5% | 11.0% |
| FCF Yield | — | — | 0.2% | 6.8% | 3.4% | 2.5% | — | 3.9% | 6.8% | 4.7% | 5.7% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% |
| Shares Outstanding | — | $114M | $112M | $111M | $111M | $110M | $108M | $107M | $103M | $106M | $101M |
Peer Comparison
Compare TSEM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TSEMYou | $33B | 147.8 | 65.8 | — | 23.2% | 12.4% | 8.0% | 5.4% | 0.3 |
 GFS | $48B | 54.0 | 22.5 | 47.3 | 25.2% | 11.7% | 7.8% | 5.3% | 0.8 |
 UMC | $60B | 45.7 | 17.9 | 36.3 | 29.0% | 18.5% | 11.2% | 10.0% | 0.6 |
 INTC | $673B | -2274.9 | 60.4 | — | 34.8% | -0.0% | -0.2% | -0.0% | 4.0 |
 ON | $48B | 419.4 | 34.2 | 33.6 | 32.3% | 12.5% | 1.5% | 6.1% | 2.4 |
 WOLF | $3B | -1.7 | — | — | -16.1% | -175.4% | -739.9% | -17.1% | — |
 SWKS | $11B | 23.5 | 11.4 | 9.9 | 41.2% | 12.2% | 7.9% | 6.3% | 1.2 |
 QRVO | $9B | 27.2 | 23.0 | 13.4 | 45.9% | 11.2% | 10.1% | 8.1% | 3.8 |
 AMAT | $490B | 71.3 | 58.3 | 86.0 | 48.7% | 29.2% | 35.5% | 32.9% | 0.8 |
 LRCX | $486B | 93.7 | 77.0 | 89.7 | 48.7% | 32.0% | 58.2% | 55.7% | 0.8 |
 KLAC | $34B | 8.5 | 6.8 | 9.1 | 62.3% | 43.1% | 100.8% | 46.5% | 1.1 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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TSEM — Frequently Asked Questions
Quick answers to the most common questions about buying TSEM stock.
What is Tower Semiconductor Ltd.'s P/E ratio?
Tower Semiconductor Ltd.'s current P/E ratio is 147.8x. The historical average is 34.5x. This places it at the 92th percentile of its historical range.
What is Tower Semiconductor Ltd.'s EV/EBITDA?
Tower Semiconductor Ltd.'s current EV/EBITDA is 65.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
What is Tower Semiconductor Ltd.'s ROE?
Tower Semiconductor Ltd.'s return on equity (ROE) is 8.0%. The historical average is -35.3%.
Is TSEM stock overvalued?
Based on historical data, Tower Semiconductor Ltd. is trading at a P/E of 147.8x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Tower Semiconductor Ltd.'s profit margins?
Tower Semiconductor Ltd. has 23.2% gross margin and 12.4% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Tower Semiconductor Ltd. have?
Tower Semiconductor Ltd.'s Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.