TSM Relative Valuation
TSM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TSM is overvalued; if below, it's undervalued.
Historical Valuation
Taiwan Semiconductor Manufacturing Co Ltd (TSM) is now in the Fair zone, suggesting that its current forward PE ratio of 19.92 is considered Fairly compared with the five-year average of 18.60. The fair price of Taiwan Semiconductor Manufacturing Co Ltd (TSM) is between 264.49 to 362.72 according to relative valuation methord.
Relative Value
Fair Zone
264.49-362.72
Current Price：295.45
Fair
20.13
PE
1Y
3Y
5Y
Trailing
Forward
12.13
EV/EBITDA
Taiwan Semiconductor Manufacturing Co Ltd. (TSM) has a current EV/EBITDA of 12.13. The 5-year average EV/EBITDA is 10.26. The thresholds are as follows: Strongly Undervalued below 6.00, Undervalued between 6.00 and 8.13, Fairly Valued between 12.39 and 8.13, Overvalued between 12.39 and 14.53, and Strongly Overvalued above 14.53. The current Forward EV/EBITDA of 12.13 falls within the Historic Trend Line -Fairly Valued range.
16.85
EV/EBIT
Taiwan Semiconductor Manufacturing Co Ltd. (TSM) has a current EV/EBIT of 16.85. The 5-year average EV/EBIT is 15.96. The thresholds are as follows: Strongly Undervalued below 8.44, Undervalued between 8.44 and 12.20, Fairly Valued between 19.71 and 12.20, Overvalued between 19.71 and 23.47, and Strongly Overvalued above 23.47. The current Forward EV/EBIT of 16.85 falls within the Historic Trend Line -Fairly Valued range.
8.75
PS
Taiwan Semiconductor Manufacturing Co Ltd. (TSM) has a current PS of 8.75. The 5-year average PS is 7.27. The thresholds are as follows: Strongly Undervalued below 4.39, Undervalued between 4.39 and 5.83, Fairly Valued between 8.71 and 5.83, Overvalued between 8.71 and 10.14, and Strongly Overvalued above 10.14. The current Forward PS of 8.75 falls within the Overvalued range.
15.77
P/OCF
Taiwan Semiconductor Manufacturing Co Ltd. (TSM) has a current P/OCF of 15.77. The 5-year average P/OCF is 12.15. The thresholds are as follows: Strongly Undervalued below 7.27, Undervalued between 7.27 and 9.71, Fairly Valued between 14.59 and 9.71, Overvalued between 14.59 and 17.03, and Strongly Overvalued above 17.03. The current Forward P/OCF of 15.77 falls within the Overvalued range.
40.07
P/FCF
Taiwan Semiconductor Manufacturing Co Ltd. (TSM) has a current P/FCF of 40.07. The 5-year average P/FCF is 53.89. The thresholds are as follows: Strongly Undervalued below -23.05, Undervalued between -23.05 and 15.42, Fairly Valued between 92.36 and 15.42, Overvalued between 92.36 and 130.84, and Strongly Overvalued above 130.84. The current Forward P/FCF of 40.07 falls within the Historic Trend Line -Fairly Valued range.
Taiwan Semiconductor Manufacturing Co Ltd (TSM) has a current Price-to-Book (P/B) ratio of 7.45. Compared to its 3-year average P/B ratio of 7.39 , the current P/B ratio is approximately 0.70% higher. Relative to its 5-year average P/B ratio of 7.18, the current P/B ratio is about 3.69% higher. Taiwan Semiconductor Manufacturing Co Ltd (TSM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.79%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.67% , the current FCF yield is about -100.00% lower.
7.52
P/B
Median3y
7.39
Median5y
7.18
2.37
FCF Yield
Median3y
2.79
Median5y
2.67
Competitors Valuation Multiple
The average P/S ratio for TSM's competitors is 4.21, providing a benchmark for relative valuation. Taiwan Semiconductor Manufacturing Co Ltd Corp (TSM) exhibits a P/S ratio of 8.75, which is 108.06% above the industry average. Given its robust revenue growth of 40.49%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TSM increased by 48.33% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 23.55B to 33.08B.
The secondary factor is the Margin Expansion, contributed 6.66%to the performance.
Overall, the performance of TSM in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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