Based on the provided data and current market context, here's a concise analysis of TSM's valuation:
TSM is currently trading at reasonable valuations despite its strong market position. The stock has a forward P/E of 24x, which is lower than the tech-heavy Nasdaq-100's forward P/E of 25x, suggesting it's not overvalued relative to peers. The PEG ratio of 0.66 indicates the stock is undervalued considering its growth prospects.
The company demonstrates strong growth fundamentals with:
- Revenue growth of 33.77% YoY
- EPS growth of 47.1% YoY
- Projected 5-year revenue CAGR of 20%
- AI chip revenue expected to grow at 40% CAGR over next 5 years
TSM maintains its dominant 64% share in the global foundry market and serves major clients like Nvidia, AMD, and Apple. The company's Q1 2025 guidance exceeded Wall Street expectations with projected revenue of $25-25.8 billion.
Given TSM's industry leadership, strong growth trajectory, reasonable valuations, and expanding AI opportunities, the stock appears fairly valued at current levels with potential for further upside.