Latest Ratios: P/E Ratio 112.9x · EV/EBITDA 50.2x · 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 | $25.0B | $13.3B | $5.8B | $3.4B | $4.8B | $4.4B | $2.8B | $2.6B | $1.5B | $3.6B | $1.9B |
| Enterprise Value | $25.0B | $13.3B | $5.7B | $3.4B | $4.7B | $4.5B | $3.0B | $2.5B | $1.4B | $3.5B | $1.9B |
| P/E Ratio → | 112.86 | 60.53 | 27.84 | 6.55 | 18.08 | 28.96 | 33.97 | 28.64 | 11.17 | 11.75 | 9.11 |
| P/S Ratio | 15.99 | 8.52 | 4.03 | 2.39 | 2.85 | 2.89 | 2.21 | 2.09 | 1.16 | 2.60 | 1.54 |
| P/B Ratio | 8.56 | 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 | 63.30 | 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 | 50.20 | 26.67 | 12.45 | 4.18 | 7.80 | 10.20 | 8.99 | 8.44 | 3.77 | 8.17 | 5.14 |
| EV / EBIT | 128.55 | 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 |
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 | 0.9% | 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 |
Regional geopolitical instability
According to current market data, Tower Semiconductor trades at a P/E of 128.82, which significantly exceeds the valuation of peers like GlobalFoundries, suggesting that investors are pricing in a scarcity premium for its specialized analog foundry capabilities rather than purely cyclical growth expectations.
The elevated forward P/E of 74.78 implies that the market expects a substantial earnings inflection, likely tied to the successful ramp-up of 300mm capacity. Investors should monitor whether this valuation remains sustainable if the geopolitical discount associated with its Israeli manufacturing base continues to weigh on institutional sentiment.
Based on reported financial statements, Tower's ROIC has remained in a narrow range between 1.0% and 1.9% over the last ten quarters, indicating that the company is currently struggling to generate returns that exceed its cost of capital due to heavy ongoing investment in fabrication infrastructure.
The persistent gap between invested capital and returns suggests that the company's asset-heavy model requires significant scale to achieve meaningful compounding. Future improvements in ROIC appear contingent on higher utilization rates of the newer 300mm nodes, which currently act as a drag on overall capital efficiency.
As reported in recent quarterly filings, Tower's cash conversion cycle has fluctuated between 87 and 104 days, reflecting the inherent complexity of managing long-cycle analog production and the associated inventory requirements for specialized semiconductor manufacturing processes.
The elevated days inventory outstanding, which peaked at 104 days in 2024Q1, suggests that the company maintains significant buffer stocks to mitigate supply chain volatility. While this provides operational resilience, it ties up capital that could otherwise be deployed toward higher-growth R&D initiatives.
Based on the latest balance sheet data, Tower maintains a minimal debt-to-equity ratio of 0.05, which stands in stark contrast to the more leveraged capital structures of foundry peers and provides a significant safety margin against sector-wide downturns or regional operational disruptions.
This conservative leverage profile is a strategic asset, allowing the company to navigate the lumpy nature of foundry CapEx without the burden of significant interest obligations. The lack of meaningful debt service requirements appears to be a key differentiator that supports the company's long-term stability.
Investors frequently misapply the P/E ratio to Tower Semiconductor, as it fails to account for the significant non-operating income and lumpy depreciation schedules that distort net earnings, making the EV/EBITDA metric a more reliable indicator of core operational performance.
Because Tower's business model is defined by high fixed-cost depreciation and periodic one-time gains, the P/E ratio often provides a misleading picture of true earning power. Analysts should prioritize cash-based metrics to better understand the underlying health of the foundry operations.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TSEM stock.
Tower Semiconductor Ltd.'s current P/E ratio is 112.9x. 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 50.2x. 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 112.9x. 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.