Tower Semiconductor Valuation
| TSEM Stock | ILA 12,030 100.00 0.82% |
At this time, the company appears to be overvalued. Tower Semiconductor has a current Real Value of 9941.4 per share. The regular price of the company is 12030.0. Our model measures the value of Tower Semiconductor from inspecting the company fundamentals such as Return On Equity of 0.14, shares outstanding of 109.5 M, and Operating Margin of 0.16 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Overvalued
Today
Please note that Tower Semiconductor's price fluctuation is very steady at this time. Calculation of the real value of Tower Semiconductor is based on 3 months time horizon. Increasing Tower Semiconductor's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Tower Semiconductor is useful when determining the fair value of the Tower stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Tower Semiconductor. Since Tower Semiconductor is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Tower Stock. However, Tower Semiconductor's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 12030.0 | Real 9941.4 | Hype 12030.0 | Naive 11837.96 |
The real value of Tower Stock, also known as its intrinsic value, is the underlying worth of Tower Semiconductor Company, which is reflected in its stock price. It is based on Tower Semiconductor's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Tower Semiconductor's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Tower Semiconductor's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Tower Semiconductor helps investors to forecast how Tower stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Tower Semiconductor more accurately as focusing exclusively on Tower Semiconductor's fundamentals will not take into account other important factors: Tower Semiconductor Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Tower Semiconductor's current stock value. Our valuation model uses many indicators to compare Tower Semiconductor value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Tower Semiconductor competition to find correlations between indicators driving Tower Semiconductor's intrinsic value. More Info.Tower Semiconductor is currently regarded as top stock in price to book category among related companies. It is currently regarded as top stock in price to sales category among related companies fabricating about 3.64 of Price To Sales per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Tower Semiconductor by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Tower Semiconductor's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Tower Semiconductor's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Tower Semiconductor's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Tower Semiconductor and how it compares across the competition.
About Tower Semiconductor Valuation
The stock valuation mechanism determines the current worth of Tower Semiconductor on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Tower Semiconductor. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Tower Semiconductor based exclusively on its fundamental and basic technical indicators. By analyzing Tower Semiconductor's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Tower Semiconductor's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Tower Semiconductor. We calculate exposure to Tower Semiconductor's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Tower Semiconductor's related companies.Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel. TOWER SEMICONDUCTO is traded on Tel Aviv Stock Exchange in Israel.
8 Steps to conduct Tower Semiconductor's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Tower Semiconductor's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Tower Semiconductor's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Tower Semiconductor's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Tower Semiconductor's revenue streams: Identify Tower Semiconductor's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Tower Semiconductor's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Tower Semiconductor's growth potential: Evaluate Tower Semiconductor's management, business model, and growth potential.
- Determine Tower Semiconductor's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Tower Semiconductor's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Tower Semiconductor. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. For information on how to trade Tower Stock refer to our How to Trade Tower Stock guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Complementary Tools for Tower Stock analysis
When running Tower Semiconductor's price analysis, check to measure Tower Semiconductor's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Tower Semiconductor is operating at the current time. Most of Tower Semiconductor's value examination focuses on studying past and present price action to predict the probability of Tower Semiconductor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Tower Semiconductor's price. Additionally, you may evaluate how the addition of Tower Semiconductor to your portfolios can decrease your overall portfolio volatility.
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