Semiconductors · NYSE
Current Price
$393.83
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Taiwan Semiconductor Manufacturing Company Limited with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also offers customer and engineering support services; manufactures masks; and invests in technology start-up companies; researches, designs, develops, manufactures, packages, tests, and sells color filters; and provides investment services. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
Earnings Yield
3.41%
ROE (TTM)
36.9%
Based on trailing twelve-month data, TSM has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of TSM reflects how much investors pay per dollar of Taiwan Semiconductor Manufacturing Company Limited's earnings. This metric is most useful when compared to Semiconductors peers and the company's own historical range.
Whether TSM is overvalued depends on comparing its PE ratio to Semiconductors peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Taiwan Semiconductor Manufacturing Company Limited using PE: (1) Compare the current PE against the Semiconductors median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how TSM is priced versus Semiconductors peers. DCF provides an absolute value based on projected free cash flows. For TSM, with a strong ROE of 36.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
