Taiwan Semiconductor Manufacturing Company Limited

NYSE:TSM Stock Report

Mkt Cap: US$468.5b

We’ve recently updated our valuation analysis.

Taiwan Semiconductor Manufacturing Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

TSM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.9x
Enterprise Value/EBITDA8.6x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TSM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.3x
NVDA NVIDIA
87.2x23.8%US$519.3b
AVGO Broadcom
22.3x7.4%US$249.7b
QCOM QUALCOMM
11.7x6.4%US$151.4b
TXN Texas Instruments
19x-0.1%US$165.2b
TSM Taiwan Semiconductor Manufacturing
13.8x4.1%US$14.1t

Price-To-Earnings vs Peers: TSM is good value based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (35.3x).


Price to Earnings Ratio vs Industry

How does TSM's PE Ratio compare vs other companies in the US Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.5%
n/an/an/a

Price-To-Earnings vs Industry: TSM is good value based on its Price-To-Earnings Ratio (13.8x) compared to the US Semiconductor industry average (19x)


Price to Earnings Ratio vs Fair Ratio

What is TSM'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.

TSM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.8x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: TSM is good value based on its Price-To-Earnings Ratio (13.8x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).


Share Price vs Fair Value

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

Below Fair Value: TSM ($94.66) is trading above our estimate of fair value ($57.37)

Significantly Below Fair Value: TSM is trading above our estimate of fair value.


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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