Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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.
Tower SemiconductorTSEM +5.08%71 EV-to-OCF is 31.64 as of Aug. 16, 2026, which is 245% above its 10-year median of 9.18. GuruFocus rates TSEM with a GF Score™ of 71/100 and a GF Value™ of $65.93 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,033 Semiconductors companies, Tower Semiconductor ranks worse than 66.6% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Tower Semiconductor's Enterprise Value is $27,401 Mil.
Tower Semiconductor's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $866 Mil. Therefore, Tower Semiconductor's EV-to-OCF for today is 31.64.
The historical rank and industry rank for Tower Semiconductor's EV-to-OCF or its related term are showing as below:
TSEM'
s EV-to-OCF Range Over the Past 10 Years
Min: 3.46 Med: 9.18 Max: 48.99
Current: 31.73
During the past 13 years, the highest EV-to-OCF of Tower Semiconductor was 48.99. The lowest was 3.46. And the median was 9.18.
TSEM's EV-to-OCF is ranked worse than 66.6% of 1033
companies
in the Semiconductors industry
Industry Median: 14.25
vs TSEM: 31.73
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Tower Semiconductor's PE Ratio (TTM) for today is calculated as:
Tower Semiconductor's share price for today is $265.48.
Tower Semiconductor's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.530.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Tower Semiconductor EV-to-OCF Related Terms
Tower Semiconductor EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Tower Semiconductor's EV-to-OCF 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 EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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 EV-to-OCF vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Tower Semiconductor's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Tower Semiconductor's EV-to-OCF falls into.
Tower Semiconductor's current Enterprise Value is $27,401 Mil.
Tower Semiconductor's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $866 Mil.
* 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 (TSEM) has a EV-to-OCF of 31.64 as of Aug. 16, 2026. This is 245% above median its historical median of 9.18. Over the past decade, Tower Semiconductor's EV-to-OCF has ranged from 3.46 to 48.99. According to the industry distribution chart, Tower Semiconductor ranks #688 out of 1033 companies in the Semiconductors industry, placing it in the top 66.6%.
Is Tower Semiconductor's EV-to-OCF too high?
Tower Semiconductor's current EV-to-OCF of 31.64 is 245% above median its 10-year median of 9.18. Over the past 10 years, this metric has ranged from a low of 3.46 to a high of 48.99. The Semiconductors industry median EV-to-OCF is 14.25. Tower Semiconductor's value of 31.64 is 122% above this industry median. Based on the distribution chart, Tower Semiconductor ranks #688 out of 1033 companies in the Semiconductors industry, which is below the industry midpoint. 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 EV-to-OCF compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Tower Semiconductor ranks #688 out of 1033 companies for EV-to-OCF. This places Tower Semiconductor in the lower half of its industry. The industry median EV-to-OCF is 14.25. Tower Semiconductor's value of 31.64 is 122% above this benchmark. Historically, Tower Semiconductor's own EV-to-OCF has ranged from 3.46 to 48.99 over the past decade. While the company's 10-year median is 9.18 vs. the industry median of 14.25, Tower Semiconductor has consistently been above 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 EV-to-OCF for a Semiconductors company?
The median EV-to-OCF among Semiconductors companies is 14.25, based on 1,033 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tower Semiconductor's current EV-to-OCF of 31.64 is 122% above 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median EV-to-OCF is 14.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tower Semiconductor's current EV-to-OCF is 31.64, which is 245% above median its own 10-year median of 9.18. 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 $65.93, compared to a current price of $265.48 — trading 302.7% above its estimated fair value. The current EV-to-OCF is 31.64, which is 245% above median its 10-year median of 9.18 and 122% above the Semiconductors industry median of 14.25. 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 EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Tower Semiconductor (TSEM), the current EV-to-OCF is 31.64 as of Aug. 16, 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 $265.48 is trading 302.7% above its estimated GF Value™ of $65.93.
GuruFocus considers Tower Semiconductor to be Significantly Overvalued.
Key valuation signals for TSEM:
EV-to-OCF: 31.64 (245% above median its 10-year median of 9.18)
GF Value™: $65.93 vs. price of $265.48 (302.7% above fair value)
Industry Position: 122% above the Semiconductors median (#688 of 1033)
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
Get the complete analysis for TSEM
EV-to-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSEM has been successfully added to your 
