Taiwan Semiconductor Manufacturing Company Limited

TWSE:2330 Stock Report

Market Cap: NT$26.6t

Taiwan Semiconductor Manufacturing Valuation

Is 2330 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 2330 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2330 (NT$1010) is trading below our estimate of fair value (NT$1279.52)

Significantly Below Fair Value: 2330 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2330?

Key metric: As 2330 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2330. This is calculated by dividing 2330's market cap by their current earnings.
What is 2330's PE Ratio?
PE Ratio25.3x
EarningsNT$1.04t
Market CapNT$26.58t

Price to Earnings Ratio vs Peers

How does 2330's PE Ratio compare to its peers?

The above table shows the PE ratio for 2330 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.1x
2454 MediaTek
18.6x8.0%NT$2.0t
3711 ASE Technology Holding
20.5x32.9%NT$672.6b
2303 United Microelectronics
11x8.0%NT$562.5b
3529 eMemory Technology
130.2x29.6%NT$224.4b
2330 Taiwan Semiconductor Manufacturing
25.3x19.7%NT$26.6t

Price-To-Earnings vs Peers: 2330 is good value based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (45.1x).

Price to Earnings Ratio vs Industry

How does 2330's PE Ratio compare vs other companies in the TW Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
4944 Crystalwise Technology
4xn/aUS$15.69m
No more companies available in this PE range
2330 25.3xIndustry Avg. 30.5xNo. of Companies31PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2330 is good value based on its Price-To-Earnings Ratio (25.3x) compared to the TW Semiconductor industry average (30.5x).

Price to Earnings Ratio vs Fair Ratio

What is 2330'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.

2330 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.3x
Fair PE Ratio50.8x

Price-To-Earnings vs Fair Ratio: 2330 is good value based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (50.8x).

Analyst Price Targets

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

The above table shows the analyst 2330 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$1,010.00
NT$1,382.28
+36.9%
8.4%NT$1,600.00NT$1,170.00n/a30
Nov ’25NT$1,025.00
NT$1,375.78
+34.2%
8.8%NT$1,600.00NT$1,170.00n/a30
Oct ’25NT$972.00
NT$1,261.06
+29.7%
10.4%NT$1,600.00NT$1,040.00n/a29
Sep ’25NT$944.00
NT$1,224.49
+29.7%
13.5%NT$1,600.00NT$700.00n/a30
Aug ’25NT$960.00
NT$1,211.89
+26.2%
14.5%NT$1,600.00NT$700.00n/a30
Jul ’25NT$968.00
NT$1,013.61
+4.7%
16.1%NT$1,380.00NT$688.00n/a28
Jun ’25NT$821.00
NT$929.18
+13.2%
9.9%NT$1,080.00NT$688.00n/a28
May ’25NT$790.00
NT$912.98
+15.6%
10.2%NT$1,080.00NT$688.00n/a28
Apr ’25NT$770.00
NT$809.56
+5.1%
12.3%NT$993.00NT$600.00n/a29
Mar ’25NT$689.00
NT$735.11
+6.7%
8.1%NT$950.00NT$600.00n/a29
Feb ’25NT$628.00
NT$728.73
+16.0%
8.1%NT$950.00NT$600.00n/a29
Jan ’25NT$593.00
NT$699.59
+18.0%
9.4%NT$900.00NT$530.00n/a28
Dec ’24NT$579.00
NT$696.91
+20.4%
9.7%NT$900.00NT$530.00n/a28
Nov ’24NT$528.00
NT$690.30
+30.7%
9.8%NT$900.00NT$530.00NT$1,025.0028
Oct ’24NT$523.00
NT$674.20
+28.9%
9.4%NT$850.00NT$510.00NT$972.0028
Sep ’24NT$548.00
NT$674.57
+23.1%
9.2%NT$850.00NT$510.00NT$944.0029
Aug ’24NT$567.00
NT$672.57
+18.6%
9.8%NT$850.00NT$510.00NT$960.0029
Jul ’24NT$576.00
NT$641.40
+11.4%
9.1%NT$765.00NT$510.00NT$968.0028
Jun ’24NT$551.00
NT$645.36
+17.1%
10.0%NT$850.00NT$510.00NT$821.0028
May ’24NT$502.00
NT$641.66
+27.8%
10.3%NT$850.00NT$510.00NT$790.0029
Apr ’24NT$533.00
NT$627.98
+17.8%
12.8%NT$850.00NT$450.00NT$770.0031
Mar ’24NT$522.00
NT$623.62
+19.5%
13.2%NT$850.00NT$450.00NT$689.0031
Feb ’24NT$530.00
NT$617.14
+16.4%
13.3%NT$850.00NT$450.00NT$628.0031
Jan ’24NT$448.50
NT$624.82
+39.3%
15.8%NT$860.00NT$450.00NT$593.0031
Dec ’23NT$498.50
NT$627.64
+25.9%
17.7%NT$860.00NT$445.00NT$579.0032
Nov ’23NT$391.50
NT$632.45
+61.5%
18.4%NT$860.00NT$390.00NT$528.0032

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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