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Tower SemiconductorTSEM +4.03%71 Debt-to-EBITDA is 0.26 as of Mar. 2026, which is 64% below its 10-year median of 0.73. GuruFocus rates TSEM with a GF Score™ of 71/100 and a GF Value™ of $57.90 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 724 Semiconductors companies, Tower Semiconductor ranks better than 77.49% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Tower Semiconductor's Debt-to-EBITDA or its related term are showing as below:
TSEM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.27 Med: 0.73 Max: 1.16
Current: 0.27
During the past 13 years, the highest Debt-to-EBITDA Ratio of Tower Semiconductor was 1.16. The lowest was 0.27. And the median was 0.73.
TSEM's Debt-to-EBITDA is ranked better than 77.49% of 724
companies
in the Semiconductors industry
Industry Median: 1.45
vs TSEM: 0.27
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Tower Semiconductor Debt-to-EBITDA Related Terms
Tower Semiconductor Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Tower Semiconductor's Debt-to-EBITDA 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.
For the Semiconductors subindustry, Tower Semiconductor's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Tower Semiconductor's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Tower Semiconductor's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Tower Semiconductor (TSEM) has a Debt-to-EBITDA of 0.26 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tower Semiconductor. This is 64% below median its historical median of 0.73. Over the past decade, Tower Semiconductor's Debt-to-EBITDA has ranged from 0.27 to 1.16. According to the industry distribution chart, Tower Semiconductor ranks #163 out of 724 companies in the Semiconductors industry, placing it in the top 22.5%.
Is Tower Semiconductor's Debt-to-EBITDA too high?
Tower Semiconductor's current Debt-to-EBITDA of 0.26 is 64% below median its 10-year median of 0.73. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 1.16. The Semiconductors industry median Debt-to-EBITDA is 1.45. Tower Semiconductor's value of 0.26 is 82.1% below this industry median. Based on the distribution chart, Tower Semiconductor ranks #163 out of 724 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Tower Semiconductor has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tower Semiconductor's Debt-to-EBITDA compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Tower Semiconductor ranks #163 out of 724 companies for Debt-to-EBITDA. This places Tower Semiconductor in the top 23% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.45. Tower Semiconductor's value of 0.26 is 82.1% below this benchmark. Historically, Tower Semiconductor's own Debt-to-EBITDA has ranged from 0.27 to 1.16 over the past decade. While the company's 10-year median is 0.73 vs. the industry median of 1.45, Tower Semiconductor has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Semiconductors company?
The median Debt-to-EBITDA among Semiconductors companies is 1.45, based on 724 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tower Semiconductor's current Debt-to-EBITDA of 0.26 is 82.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tower Semiconductor. For the Semiconductors industry, the median Debt-to-EBITDA is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tower Semiconductor's current Debt-to-EBITDA is 0.26, which is 64% below median its own 10-year median of 0.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tower Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Tower Semiconductor (TSEM) is currently considered Significantly Overvalued. The stock's GF Value™ is $57.90, compared to a current price of $219.31 — trading 278.8% above its estimated fair value. The current Debt-to-EBITDA is 0.26, which is 64% below median its 10-year median of 0.73 and 82.1% below the Semiconductors industry median of 1.45. Tower Semiconductor's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Tower Semiconductor (TSEM), the current Debt-to-EBITDA is 0.26 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tower Semiconductor (TSEM) Overvalued in 2026?
Based on GuruFocus' analysis, Tower Semiconductor stock appears to be overvalued.
The current stock price of $219.31 is trading 278.8% above its estimated GF Value™ of $57.90.
GuruFocus considers Tower Semiconductor to be Significantly Overvalued.
Key valuation signals for TSEM:
Debt-to-EBITDA: 0.26 (64% below median its 10-year median of 0.73)
GF Value™: $57.90 vs. price of $219.31 (278.8% above fair value)
Industry Position: 82.1% below the Semiconductors median (#163 of 724)
No single metric tells the full story. See the TSEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
71GF Score
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