Is Tower Semiconductor Ltd. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Tower Semiconductor Ltd. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key valuation ratios include a P/E ratio of 23, an EV to EBIT of 18.89, and an EV to EBITDA of 7.47. In comparison to peers, Amkor Technology, Inc. has a P/E of 23.85, while Cirrus Logic, Inc. stands at a more attractive P/E of 17.26.
In terms of stock performance, Tower Semiconductor has significantly outperformed the S&P 500, with a 1-year return of 69.69% compared to the S&P 500's 17.14%. This strong performance reinforces the notion that the stock is fairly valued in the current market environment.