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Tower Semiconductor (FRA:TOW) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Tower Semiconductor Forward PE Ratio Related Terms
Tower Semiconductor Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Tower Semiconductor's Forward PE 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 Forward PE Ratio Chart
Tower Semiconductor Annual Data
Trend
2015-12
2018-12
2019-12
2020-12
2021-12
2022-12
2024-12
2025-12
Forward PE Ratio
4.96
8.56
19.16
17.39
17.39
17.89
23.70
40.77
Tower Semiconductor Quarterly Data
2015-12
2016-03
2016-06
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
4.96
3.72
3.85
12.64
11.86
10.94
8.56
12.09
14.88
14.56
19.16
13.72
17.27
13.21
17.39
19.76
20.62
18.38
17.39
22.83
20.45
17.79
17.89
19.46
17.86
11.98
19.96
21.19
23.70
16.84
19.80
24.24
40.77
60.03
FRA:TOW vs NVDA, AVGO, MU: Forward PE Ratio Comparison
For the Semiconductors subindustry, Tower Semiconductor's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Forward PE Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Tower Semiconductor's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Tower Semiconductor's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Tower Semiconductor (FRA:TOW) has a Forward PE Ratio of 73.73 as of Jul. 27, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Tower Semiconductor and its competitors. According to the industry distribution chart, Tower Semiconductor ranks #456 out of 550 companies in the Semiconductors industry, placing it in the top 82.9%.
Is Tower Semiconductor's Forward PE Ratio too high?
Tower Semiconductor's current Forward PE Ratio is 73.73. The Semiconductors industry median Forward PE Ratio is 30.09. Tower Semiconductor's value of 73.73 is 145% above this industry median. Based on the distribution chart, Tower Semiconductor ranks #456 out of 550 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. 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 Forward PE Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Tower Semiconductor ranks #456 out of 550 companies for Forward PE Ratio. This places Tower Semiconductor in the lower half of its industry. The industry median Forward PE Ratio is 30.09. Tower Semiconductor's value of 73.73 is 145% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Semiconductors company?
The median Forward PE Ratio among Semiconductors companies is 30.09, based on 550 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tower Semiconductor's current Forward PE Ratio of 73.73 is 145% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Tower Semiconductor and its competitors. For the Semiconductors industry, the median Forward PE Ratio is 30.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tower Semiconductor's current Forward PE Ratio is 73.73. 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 (FRA:TOW) is currently considered Significantly Overvalued. The stock's GF Value™ is €47.91, compared to a current price of €215.00 — trading 348.8% above its estimated fair value. The current Forward PE Ratio is 73.73 and 145% above the Semiconductors industry median of 30.09. Tower Semiconductor's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Tower Semiconductor (FRA:TOW), the current Forward PE Ratio is 73.73 as of Jul. 27, 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 €215.00 is trading 348.8% above its estimated GF Value™ of €47.91.
GuruFocus considers Tower Semiconductor to be Significantly Overvalued.
Key valuation signals for FRA:TOW:
Forward PE Ratio: 73.73
GF Value™: €47.91 vs. price of €215.00 (348.8% above fair value)
Industry Position: 145% above the Semiconductors median (#456 of 550)
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 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
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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