Taiwan Semiconductor Manufacturing Company Limited

LSE:0LCV Stock Report

Market Cap: US$851.5b

Taiwan Semiconductor Manufacturing Valuation

Is 0LCV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 0LCV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0LCV ($201.46) is trading below our estimate of fair value ($238.86)

Significantly Below Fair Value: 0LCV 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 0LCV?

Key metric: As 0LCV is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LCV. This is calculated by dividing 0LCV's market cap by their current earnings.
What is 0LCV's PE Ratio?
PE Ratio26.6x
EarningsNT$1.04t
Market CapNT$27.62t

Price to Earnings Ratio vs Peers

How does 0LCV's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LCV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average82.3x
AVGO Broadcom
152.8x42.8%US$838.5b
AMD Advanced Micro Devices
123.2x40.1%US$229.4b
QCOM QUALCOMM
17.5x7.1%US$178.2b
TXN Texas Instruments
35.7x15.3%US$176.0b
0LCV Taiwan Semiconductor Manufacturing
26.6x19.6%US$27.6t

Price-To-Earnings vs Peers: 0LCV is good value based on its Price-To-Earnings Ratio (26.6x) compared to the peer average (82.3x).


Price to Earnings Ratio vs Industry

How does 0LCV's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0LCV 26.6xIndustry Avg. 15.9xNo. of Companies6PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0LCV is expensive based on its Price-To-Earnings Ratio (26.6x) compared to the European Semiconductor industry average (15.9x).


Price to Earnings Ratio vs Fair Ratio

What is 0LCV'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.

0LCV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.6x
Fair PE Ratio46.7x

Price-To-Earnings vs Fair Ratio: 0LCV is good value based on its Price-To-Earnings Ratio (26.6x) compared to the estimated Fair Price-To-Earnings Ratio (46.7x).


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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