Latest Ratios: P/E Ratio 124.1x · EV/EBITDA 54.5x · ROE 8.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $27.2B | $13.3B | $5.8B | $3.4B | $4.8B | $4.4B | $2.8B | $2.6B | $1.5B | $3.6B | $1.9B |
| Enterprise Value | $27.1B | $13.3B | $5.7B | $3.4B | $4.7B | $4.5B | $3.0B | $2.5B | $1.4B | $3.5B | $1.9B |
| P/E Ratio → | 124.13 | 60.53 | 27.84 | 6.55 | 18.08 | 28.96 | 33.97 | 28.64 | 11.17 | 11.75 | 9.11 |
| P/S Ratio | 17.35 | 8.52 | 4.03 | 2.39 | 2.85 | 2.89 | 2.21 | 2.09 | 1.16 | 2.60 | 1.54 |
| P/B Ratio | 9.42 | 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 | 68.70 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 54.49 | 26.67 | 12.45 | 4.18 | 7.80 | 10.20 | 8.99 | 8.44 | 3.77 | 8.17 | 5.14 |
| EV / EBIT | 139.54 | 55.18 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.8% | 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 |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TSEM stock.
Tower Semiconductor Ltd.'s current P/E ratio is 124.1x. The historical average is 34.5x. This places it at the 92th percentile of its historical range.
Tower Semiconductor Ltd.'s current EV/EBITDA is 54.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
Tower Semiconductor Ltd.'s return on equity (ROE) is 8.0%. The historical average is -35.3%.
Based on historical data, Tower Semiconductor Ltd. is trading at a P/E of 124.1x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Tower Semiconductor Ltd. has 23.2% gross margin and 12.4% operating margin. Operating margin between 10-20% is typical for established companies.
Tower Semiconductor Ltd.'s Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Cyclical demand and capex intensity
Margin Expansion Signals Pricing Power
Gross margin expanded 840 basis points year-over-year to 29.9% in 2026Q2, with operating margin reaching 19.6%, the highest in ten quarters, according to reported financials.
The sequential improvement from 23.5% gross margin in 2025Q3 to 29.9% in 2026Q2 suggests a structural shift in product mix or pricing power, not just cyclical recovery. Operating margin nearly doubled from 10.7% in 2025Q2 to 19.6%, indicating strong operating leverage. However, net margin of 19.7% exceeding operating margin implies a tax benefit that may not recur, so investors should focus on pre-tax profitability for sustainable earning power.
Returns on Capital Still Subdued
ROIC improved from 1.1% in 2025Q2 to 2.3% in 2026Q2, but remains far below the cost of capital, as per quarterly data, reflecting heavy asset intensity.
Despite margin expansion, ROIC of 2.3% is low relative to semiconductor peers like GFS (5.2%) and UMC (9.9%), indicating that the asset base is not yet generating adequate returns. The improvement is driven by margin recovery rather than asset efficiency, as asset turnover has remained flat at 0.12. This suggests that Tower's heavy capex into new capacity has yet to translate into proportional returns, and investors should monitor whether ROIC can approach peer levels as utilization ramps.
Working Capital Efficiency Improves
Cash conversion cycle shortened from 96 days in 2025Q3 to 77 days in 2026Q2, driven by faster receivables collection and lower inventory days, as per financial statements.
DSO fell from 50 to 41 days and DIO from 87 to 70 days over the same period, indicating better working capital management. DPO remained relatively stable around 34-41 days, suggesting Tower is not stretching suppliers excessively. The improvement in CCC is a positive sign for cash generation, though the quarterly volatility in FCF margins (ranging from -17% to 86%) highlights that working capital swings can obscure underlying trends.
Minimal Leverage Provides Flexibility
Debt-to-equity stands at 0.05 with debt-to-EBITDA at 0.81 as of 2026Q2, down from 2.24 in 2024Q1, indicating a conservative capital structure, per reported figures.
Total debt declined to $141.7M while equity grew to $3.1B, giving Tower substantial financial flexibility. Interest coverage is not reported, but given the low debt levels, debt service appears comfortable. The low leverage is a strategic contrast to peers like Intel (D/E 0.37), and it positions Tower to fund its aggressive capex program without straining the balance sheet. However, the rising capex intensity (41% of revenue in 2026Q2) could increase future debt needs if cash flow falls short.
Liquidity Buffer Remains Robust
Current ratio of 4.91 and quick ratio of 4.31 in 2026Q2 indicate ample short-term liquidity, though down from 6.61 in 2025Q3, as per quarterly data.
The liquidity position is strong, with cash and short-term investments providing a cushion against cyclical downturns. The slight decline in the current ratio reflects increased investment in working capital and capex, but the absolute level remains well above the 1.5-2.0 range typically considered adequate. Under a severe demand shock, Tower's low debt and high cash reserves would likely sustain operations, though the heavy capex commitment could pressure liquidity if cash flows deteriorate.
Misapplied P/E on Cyclical Earnings
The trailing P/E of 130.18 is misleading for a cyclical foundry; EV/EBITDA of 57.15 better captures value, but both are elevated versus peers, per current multiples.
Tower's earnings are at a cyclical trough, making the trailing P/E appear extreme. The forward P/E of 65.88 still implies high expectations, but the market is likely pricing in a continued recovery. EV/EBITDA of 57.15 is far above GFS (12.96) and UMC (14.19), suggesting the stock is priced for perfection. Investors should use a mid-cycle earnings estimate or EV/EBITDA on normalized EBITDA to assess value, as the current multiples may overstate the risk of overvaluation.