Tower Semiconductor (STU:TOW) Cyclically Adjusted PB Ratio: (As of Aug. 05, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

STU:TOW Tower Semiconductor Ltd STU:TOW
74 GF Score
Price €189.50
GF Value €54.09
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Tower Semiconductor Cyclically Adjusted PB Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Tower Semiconductor  (STU:TOW) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Tower Semiconductor Cyclically Adjusted PB Ratio Related Terms


Tower Semiconductor Cyclically Adjusted PB Ratio Historical Data

* Premium members only.

The historical data trend for Tower Semiconductor's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Tower Semiconductor Cyclically Adjusted PB Ratio Chart

Tower Semiconductor Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.12 4.60 2.87 4.17 7.12

Tower Semiconductor Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.97 4.61 7.12 9.84 0.00

STU:TOW vs NVDA, AVGO, MU: Cyclically Adjusted PB Ratio Comparison

For the Semiconductors subindustry, Tower Semiconductor's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tower Semiconductor Cyclically Adjusted PB Ratio vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Tower Semiconductor's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Tower Semiconductor's Cyclically Adjusted PB Ratio falls into.


STU:TOW
74GF Score
Tower Semiconductor Ltd STU:TOW
Cyclically Adjusted PB Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Tower Semiconductor Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Tower Semiconductor's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2026 is calculated as:

For example, Tower Semiconductor's adjusted Book Value per Share data for the three months ended in Jun. 2026 was:

Adj_Book=Book Value per Share/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=23.699/333.9520*333.9520
=23.699

Current CPI (Jun. 2026) = 333.9520.

Tower Semiconductor Quarterly Data

Book Value per Share CPI Adj_Book
201609 6.095 241.428 8.431
201612 7.035 241.432 9.731
201703 7.367 243.801 10.091
201706 7.459 244.955 10.169
201709 7.523 246.819 10.179
201712 8.892 246.524 12.045
201803 8.829 249.554 11.815
201806 9.556 251.989 12.664
201809 9.468 252.439 12.525
201812 10.407 251.233 13.834
201903 10.608 254.202 13.936
201906 10.819 256.143 14.106
201909 11.311 256.759 14.712
201912 11.414 256.974 14.833
202003 11.596 258.115 15.003
202006 11.574 257.797 14.993
202009 11.235 260.280 14.415
202012 11.103 260.474 14.235
202103 11.523 264.877 14.528
202106 11.677 271.696 14.353
202109 12.257 274.310 14.922
202112 13.301 278.802 15.932
202203 13.854 287.504 16.092
202206 14.761 296.311 16.636
202209 16.322 296.808 18.365
202212 16.237 296.797 18.270
202303 16.794 301.836 18.581
202306 16.878 305.109 18.474
202309 19.945 307.789 21.640
202312 20.127 306.746 21.912
202403 20.455 312.332 21.871
202406 21.123 314.175 22.453
202409 21.165 315.301 22.417
202412 22.716 315.605 24.037
202503 22.473 319.799 23.468
202506 21.609 322.561 22.372
202509 21.624 324.800 22.233
202512 22.154 324.054 22.831
202603 22.914 330.213 23.173
202606 23.699 333.952 23.699

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

Is Tower Semiconductor (STU:TOW) Overvalued in 2026?

Based on GuruFocus' analysis, Tower Semiconductor stock appears to be overvalued. The current stock price of €189.50 is trading 250.3% above its estimated GF Value™ of €54.09. GuruFocus considers Tower Semiconductor to be Significantly Overvalued.

Key valuation signals for STU:TOW:

  • Cyclically Adjusted PB Ratio:
  • GF Value™: €54.09 vs. price of €189.50 (250.3% above fair value)
  • GF Score™: 74/100 with 1 warning sign

No single metric tells the full story. See the STU:TOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tower Semiconductor Business Description

Address 20 Shaul Amor Avenue, P.O. Box 619, Ramat Gavriel Industrial Park, Migdal Haemek, ISR, 2310502
Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors. As a pure-play foundry, it focuses on producing integrated circuits (ICs) based on the design specifications of customers. The company's line of integrated circuits is incorporated into markets, including consumer electronics, personal computers, communications, automotive, and industrial and medical device products. It produces ICs alongside wholly-owned subsidiaries through fabrication facilities located in Japan. The company has a geographical presence in the USA, Japan, Asia (other than Japan), and Europe.
74GF Score

Get the complete analysis for STU:TOW

Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€189.50
Price
€54.09
GF Value