Stock fact sheet · data as of
Tower Semiconductor Ltd. (TSEM): fair value, margin of safety and Wheel Score
Technology · Semiconductors · Israel · Blend
Is TSEM undervalued?
TSEM closed at 209.16 on 16 Oct 2026, more than 30% above the GLS average fair value of 61.40. Only 0 of the 8 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
There is a wide gap between DCF (22.15) and Graham Growth (148.40). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files TSEM under Blend.
Nine valuation models for TSEM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 22.15 | -89% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 39.74 | -81% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 148.40 | -29% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 64.86 | -69% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 30.21 | -86% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 90.18 | -57% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 66.83 | -68% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 28.83 | -86% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 11.45 | -95% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 302.00 | +44% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Tower Semiconductor Ltd. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.1/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 7.2%, ROE 7.6%, ROA 6.6% - with debt at 0.06 times equity and a free-cash-flow yield of 1.3%.
Tower Semiconductor Ltd. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain.
Institutional ownership scores 7/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 7.2% |
|---|---|---|---|
| GLS Moat | 3.1 / 10 | ROE | 7.6% |
| Debt / equity | 0.06 | ROA | 6.6% |
| Free-cash-flow yield | 1.3% | Payout ratio | 0% |
| Institutions | 7 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 54: Fair
A Wheel Score of 54 puts Tower Semiconductor Ltd. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 16/20, Moat 5/15, Premium 14/20 and Stability 20/20; the weakest part is Value (0/25).
Implied volatility is 85% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (14 of 20) because volatility this high usually comes with a reason. The option chain is deep: 60,683 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 2.6M shares a day on a market cap of $23.6B, with a beta of 0.89; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -241% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.1/10 | |
| Premium | 14 / 20 | implied volatility 85% | |
| Stability | 20 / 20 | 2.6M shares/day, $23.6B cap, beta 0.89 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (before the open), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Tower Semiconductor Ltd. by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ENTG Entegris, Inc. | 146.87 | 44.24 | -232% | 60Fair | $22.4B |
| Q Qnity Electronics, Inc. | 121.62 | 46.23 | -163% | 64Fair | $25.4B |
| GFS GLOBALFOUNDRIES Inc. | 48.76 | 26.92 | -81% | 59Fair | $26.8B |
| MTSI MACOM Technology Solutions Holdings, Inc. | 271.39 | 61.61 | -340% | 52Fair | $20.7B |
| ON ON Semiconductor Corporation | 73.70 | 45.63 | -62% | 56Fair | $28.7B |
| CBRS Cerebras Systems Inc. | 142.17 | - | - | 45Weak | $32.2B |
| CRDO Credo Technology Group Holding Ltd | 178.50 | 83.67 | -113% | 45Weak | $33.5B |
| SITM SiTime Corporation | 524.93 | 32.89 | -1496% | 44Weak | $15.7B |
| LSCC Lattice Semiconductor Corporation | 107.09 | 10.62 | -908% | 56Fair | $15.2B |
| SMTC Semtech Corporation | 160.26 | 56.25 | -185% | 46Weak | $15.0B |
| MCHP Microchip Technology Incorporated | 74.26 | 22.65 | -228% | 55Fair | $40.3B |
| STM STMicroelectronics N.V. | 46.90 | 13.03 | -260% | 58Fair | $41.9B |
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Start free See the Sunday ScanQuestions about TSEM
Is TSEM undervalued right now?
No: at 209.16 the stock trades 241% above the GLS average fair value of 61.40 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TSEM and what does it mean?
TSEM scores 54 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TSEM?
61.40 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Tower Semiconductor Ltd. report earnings next?
The next earnings report is due on 2 Nov 2026 (before the open), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TSEM have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 60,683 open interest across all expiries and implied volatility of 85% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.