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Tower Semiconductor Ltd (TSEM) — WACC Analysis

WACC Breakdown

Tower Semiconductor Ltd (TSEM) has a weighted average cost of capital (WACC) of 9.4%. The cost of equity is 9.5%, derived from a beta of 1.20 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.8%. The capital structure is 99.4% equity and 0.6% debt.

Interpretation

A WACC of 9.4% is moderate, reflecting the market's balanced risk assessment of Tower Semiconductor Ltd.

Investors can compare TSEM's WACC of 9.4% against industry peers to gauge its relative financing costs. A beta of 1.20 reflects the stock's volatility relative to the broader market.

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VALUATION

TSEM WACC: 9.41% for Tower Semiconductor Ltd

Current inputs imply a 9.46% cost of equity and a 2.26% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Tower Semiconductor Ltd Common Stock (TSEM) WACC Results
Weighted Average Cost of Capital
9.41%
Cost of Equity
9.46%
Risk-Free Rate4.67%
Beta1.20
Market Risk Premium4.23%
Cost of Debt
1.79%
Pre-Tax Cost of Debt2.26%
Tax Rate21.00%
Tax Shield0.48%
Capital Structure
Equity: 99.35%($24.85B)
Debt: 0.65%($161.52M)
Equity Component
9.40%
99.35% × 9.46%
Debt Component
0.01%
0.65% × 1.79%

Tower Semiconductor Ltd (TSEM) WACC in context

Tower Semiconductor Ltd (TSEM) currently screens with an estimated WACC of 9.41%. That blends a 9.46% cost of equity, a 2.26% pre-tax cost of debt, and a 99.35% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What TSEM WACC implies

A 9.41% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TSEM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.20 and equity accounts for 99.35% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

TSEM WACC: 9.41% — Tower Semiconductor Ltd Cost of Capital (August 2026) | DeepViews