Tower Semiconductor (FRA:TOW) Effective Interest Rate on Debt %: 0.00% (As of Mar. 2026)

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FRA:TOW Tower Semiconductor Ltd FRA:TOW
70 GF Score
Price €216.00
GF Value €50.34
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Tower Semiconductor Effective Interest Rate on Debt %?

Tower Semiconductor FRA:TOW +6.93% 70 Effective Interest Rate on Debt % is 0.00% as of Mar. 2026. GuruFocus rates FRA:TOW with a GF Score™ of 70/100 and a GF Value™ of €50.34 (Significantly Overvalued). The stock has 1 warning sign investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Tower Semiconductor's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was €0 Mil. Tower Semiconductor's average total debt for the quarter that ended in Mar. 2026 was €136 Mil. Therefore, Tower Semiconductor's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 0.00%.


Tower Semiconductor  (FRA:TOW) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Tower Semiconductor Effective Interest Rate on Debt % Related Terms


Tower Semiconductor Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Tower Semiconductor's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % Chart

Tower Semiconductor Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.16 2.00 1.74 2.00 2.01

Tower Semiconductor Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % 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 0.00 0.00 0.00 0.00 0.00

FRA:TOW vs NVDA, AVGO, MU: Effective Interest Rate on Debt % Comparison

For the Semiconductors subindustry, Tower Semiconductor's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Tower Semiconductor's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Tower Semiconductor's Effective Interest Rate on Debt % falls into.


FRA:TOW
70GF Score
Tower Semiconductor Ltd FRA:TOW
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tower Semiconductor Effective Interest Rate on Debt % Calculation

Tower Semiconductor's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -3.124/( (172.676+137.937)/ 2 )
=-1  *  -3.124/155.3065
=2.01 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=126.477 + 46.199
=172.676

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=113.929 + 24.008
=137.937

Tower Semiconductor's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  0/( (137.937+134.815)/ 2 )
=-1  *  0/136.376
=0.00 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=113.929 + 24.008
=137.937

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=113.097 + 21.718
=134.815

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 0.00% mean?
Tower Semiconductor (FRA:TOW) has a Effective Interest Rate on Debt % of 0.00% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Tower Semiconductor and its competitors.
Is Tower Semiconductor's Effective Interest Rate on Debt % too high?
Tower Semiconductor's current Effective Interest Rate on Debt % is 0.00%. Overall, Tower Semiconductor has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tower Semiconductor's Effective Interest Rate on Debt % compare to NVDA and AVGO?
Tower Semiconductor's Effective Interest Rate on Debt % of 0.00% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Semiconductors company?
A good Effective Interest Rate on Debt % depends on the Semiconductors industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Tower Semiconductor and its competitors. Tower Semiconductor's current Effective Interest Rate on Debt % is 0.00%. 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 (FRA:TOW) is currently considered Significantly Overvalued. The stock's GF Value™ is €50.34, compared to a current price of €216.00 — trading 329.1% above its estimated fair value. The current Effective Interest Rate on Debt % is 0.00%. Tower Semiconductor's overall GF Score™ is 70/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Tower Semiconductor (FRA:TOW), the current Effective Interest Rate on Debt % is 0.00% 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 (FRA:TOW) Overvalued in 2026?

Based on GuruFocus' analysis, Tower Semiconductor stock appears to be overvalued. The current stock price of €216.00 is trading 329.1% above its estimated GF Value™ of €50.34. GuruFocus considers Tower Semiconductor to be Significantly Overvalued.

Key valuation signals for FRA:TOW:

  • Effective Interest Rate on Debt %: 0.00%
  • GF Value™: €50.34 vs. price of €216.00 (329.1% above fair value)
  • GF Score™: 70/100 with 1 warning sign

No single metric tells the full story. See the FRA: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.
70GF Score

Get the complete analysis for FRA:TOW

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€216.00
Price
€50.34
GF Value