Tower Semiconductor Valuation
| TSEM Stock | USD 47.63 0.58 1.20% |
At this time, the company appears to be fairly valued. Tower Semiconductor has a current Real Value of $49.28 per share. The regular price of the company is $47.63. Our model measures the value of Tower Semiconductor from inspecting the company fundamentals such as Operating Margin of 0.12 %, shares outstanding of 111.07 M, and Return On Equity of 0.0818 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Tower Semiconductor's valuation include:
Price Book 2.0037 | Enterprise Value | Enterprise Value Ebitda 9.3496 | Price Sales 3.6837 | Forward PE 25.4453 |
Fairly Valued
Today
Please note that Tower Semiconductor's price fluctuation is very steady at this time. Calculation of the real value of Tower Semiconductor is based on 3 months time horizon. Increasing Tower Semiconductor's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Tower stock is determined by what a typical buyer is willing to pay for full or partial control of Tower Semiconductor. Since Tower Semiconductor is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Tower Stock. However, Tower Semiconductor's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 47.63 | Real 49.28 | Target 57.5 | Hype 47.7 | Naive 47.76 |
The intrinsic value of Tower Semiconductor's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Tower Semiconductor's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Tower Semiconductor helps investors to forecast how Tower stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Tower Semiconductor more accurately as focusing exclusively on Tower Semiconductor's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Tower Semiconductor's intrinsic value based on its ongoing forecasts of Tower Semiconductor's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Tower Semiconductor's closest peers.
Tower Semiconductor Cash |
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Tower Valuation Trend
Knowing Tower Semiconductor's actual value is paramount for traders when making sound investment determinations. Using both Tower Semiconductor's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Tower Semiconductor Total Value Analysis
Tower Semiconductor is at this time forecasted to have valuation of 4.22 B with market capitalization of 5.29 B, debt of 231.56 M, and cash on hands of 855.96 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Tower Semiconductor fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.22 B | 5.29 B | 231.56 M | 855.96 M |
Tower Semiconductor Investor Information
About 66.0% of the company shares are owned by institutional investors. The book value of Tower Semiconductor was at this time reported as 23.68. The company has Price/Earnings To Growth (PEG) ratio of 0.9. Tower Semiconductor last dividend was issued on the 24th of September 1997. The entity had 1:15 split on the 6th of August 2012. Based on the analysis of Tower Semiconductor's profitability, liquidity, and operating efficiency, Tower Semiconductor is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 816.9 M | 778 M |
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Tower Semiconductor Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tower Semiconductor has an asset utilization ratio of 48.75 percent. This suggests that the Company is making $0.49 for each dollar of assets. An increasing asset utilization means that Tower Semiconductor is more efficient with each dollar of assets it utilizes for everyday operations.Tower Semiconductor Ownership Allocation
Tower Semiconductor shows a total of 111.07 Million outstanding shares. Over half of Tower Semiconductor's outstanding shares are owned by institutional holders. These institutional holders are typically referred to as corporate investors that take positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Tower Semiconductor Profitability Analysis
The company reported the previous year's revenue of 1.42 B. Net Income was 518.49 M with profit before overhead, payroll, taxes, and interest of 339.44 M.About Tower Semiconductor Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Tower Semiconductor. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Tower Semiconductor based exclusively on its fundamental and basic technical indicators. By analyzing Tower Semiconductor's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Tower Semiconductor's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Tower Semiconductor. We calculate exposure to Tower Semiconductor's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Tower Semiconductor's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 406.5 M | 426.9 M | |
| Pretax Profit Margin | 0.37 | 0.39 | |
| Operating Profit Margin | 0.35 | 0.36 | |
| Net Profit Margin | 0.33 | 0.34 | |
| Gross Profit Margin | 0.22 | 0.23 |
Tower Semiconductor Growth Indicators
Investing in growth stocks can be very risky. If the company such as Tower Semiconductor does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 111.2 M | |
| Quarterly Earnings Growth Y O Y | 0.019 | |
| Forward Price Earnings | 25.4453 |
Tower Semiconductor Current Valuation Indicators
Tower Semiconductor's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Tower Semiconductor's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Tower Semiconductor, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Tower Semiconductor's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Tower Semiconductor's worth.When determining whether Tower Semiconductor is a strong investment it is important to analyze Tower Semiconductor's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Tower Semiconductor's future performance. For an informed investment choice regarding Tower Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Tower Semiconductor. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. To learn how to invest in Tower Stock, please use our How to Invest in Tower Semiconductor guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Tower Semiconductor. If investors know Tower will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Tower Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.019 | Earnings Share 1.85 | Revenue Per Share | Quarterly Revenue Growth 0.101 | Return On Assets |
The market value of Tower Semiconductor is measured differently than its book value, which is the value of Tower that is recorded on the company's balance sheet. Investors also form their own opinion of Tower Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is Tower Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Tower Semiconductor's market value can be influenced by many factors that don't directly affect Tower Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Tower Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Tower Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tower Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.