Taiwan Semiconductor Manufacturing Company Limited

BUL:TSFA Stock Report

Market Cap: €795.0b

Taiwan Semiconductor Manufacturing Valuation

Is TSFA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TSFA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TSFA (€176.4) is trading below our estimate of fair value (€205.35)

Significantly Below Fair Value: TSFA is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TSFA?

Key metric: As TSFA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TSFA. This is calculated by dividing TSFA's market cap by their current earnings.
What is TSFA's PE Ratio?
PE Ratio26x
EarningsNT$1.04t
Market CapNT$26.97t

Price to Earnings Ratio vs Peers

How does TSFA's PE Ratio compare to its peers?

The above table shows the PE ratio for TSFA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average79.1x
AVGO Broadcom
139.8x43.0%US$767.0b
AMD Advanced Micro Devices
123x40.5%US$224.5b
QCOM QUALCOMM
17.2x7.1%US$174.2b
TXN Texas Instruments
36.6x15.3%US$180.6b
TSFA Taiwan Semiconductor Manufacturing
26x19.7%€27.0t

Price-To-Earnings vs Peers: TSFA is good value based on its Price-To-Earnings Ratio (26x) compared to the peer average (79.1x).

Price to Earnings Ratio vs Industry

How does TSFA's PE Ratio compare vs other companies in the European Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TSFA 26.0xIndustry Avg. 14.8xNo. of Companies7PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TSFA is expensive based on its Price-To-Earnings Ratio (26x) compared to the European Semiconductor industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is TSFA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TSFA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TSFA's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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