Taiwan Semiconductor Manufactur(TSM) - Stock detail

Taiwan Semiconductor Manufactur

US
TSM
Taiwan Semiconductor Manufacturing Company Limited(Listing date: 10/08/1997)

Taiwan Semiconductor Manufacturing Co., Ltd. is a joint venture between the Taiwan Provincial Government of China, Philips, and other private investors, registered in Taiwan Province of China on February 21, 1987. The company is currently the world's largest LED wafer foundry in the global semiconductor industry. As a foundry, the company manufactures semiconductors using its manufacturing processes based on customers' own or third-party proprietary integrated circuit designs. It offers a comprehensive range of wafer manufacturing processes, including those for manufacturing CMOS logic, mixed-signal, radio frequency, embedded memory, BiCMOS mixed-signal and other semiconductors. The company also provides design, mask making, probing, testing and assembly services.

AI Value AnalystBuy
Overall Rating8.7/10
Generated at:2026-03-13 17:42:29
Analysis based on 5 financial reports from periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, 2024-12-31. Data includes annual and quarterly financial metrics, valuation multiples, and market data as of 2026-03-13. Complete financial data covering profitability, liquidity, leverage, and growth metrics.
Overview

Taiwan Semiconductor Manufacturing (TSM) is the world's leading dedicated semiconductor foundry with exceptional financial health, outstanding profitability metrics, and a premium valuation justified by its growth trajectory and technological leadership. The company demonstrates strong competitive advantages, consistent high growth, and robust balance sheet strength.

Valuation
7/10
Profitability
10/10
Financial health
9/10
Operation Advice
  • Buy with a price target of $360-$400 for 6-12 month horizon, recommended long-term investment horizon of 3-5 years to capture structural growth in semiconductor demand across AI, IoT, automotive, and computing applications.

Valuation

P/E TTM
34.38
P/E LYR
31.94
P/B MRQ
10.90
P/S TTM
--
AI Analysis
  • TSM trades at premium valuation multiples (P/E TTM 34.38x, P/B 10.90x, P/S 0.46x) that are justified by superior profitability, consistent high growth trajectory, and industry-leading margins, with fair value estimated at $320-$380 based on 30-36x forward P/E multiples.
  • Current Price: $338.31 (as of 2026-03-13 close)
  • P/E (TTM): 34.38x - Premium valuation justified by growth trajectory
  • P/E (Forward): 31.94x - Slightly more attractive forward multiple
  • P/B Ratio: 10.90x - Elevated but supported by high ROE of 35.39%
  • P/S Ratio: 0.46x - Reasonable relative to industry peers
  • Valuation reflects market recognition of TSM's technological leadership and growth prospects
  • Multiples justified by superior profitability metrics (ROE 35.39%, ROA 23.49%)
  • Multiples justified by consistent high growth trajectory (30%+ revenue growth)
  • Multiples justified by industry-leading margins (60% gross, 45% net)
  • Multiples justified by dominant market position in semiconductor fabrication
  • Fair Value Range: $320-$380 based on 30-36x forward P/E multiples applied to conservative growth estimates
Valuation trend

Profitability

ROE TTM
35.39%
Net margin
45.03%
Gross margin
59.89%
Total revenue
3.81T
AI Analysis
  • TSM exhibits outstanding profitability with 31.61% YoY revenue growth, expanding gross margins to 59.89%, net margins of 45.03%, ROE of 35.39%, and EPS growth of 46.42%, demonstrating exceptional operational excellence and consistent quarterly growth throughout 2025.
  • Revenue Growth: 31.61% YoY growth to $3,809.05B (2025 annual)
  • Gross Margin: 59.89% (2025), expanding from 56.12% (2024), demonstrating pricing power and cost efficiency
  • Net Margin: 45.03% (2025), improving from 40.51% (2024), indicating operational excellence
  • ROE (TTM): 35.39% shows exceptional returns on shareholder equity
  • EPS Growth: Diluted EPS of $66.25 (2025) represents 46.42% YoY growth
  • Company has maintained consistent quarterly growth throughout 2025
  • Revenue growth ranging from 36-41% in most quarters
  • Net income growth exceeding 50% in most quarters
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--8.17%17.13%26.10%35.39%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue2.89T839.25B1.77T2.76T3.81T

Financial health

Debt/Asset
31.16%
Current ratio
2.62
Quick ratio
2.42
Cash ratio
2.42
AI Analysis
  • TSM demonstrates exceptional financial health with strong liquidity (Current Ratio 2.62, Quick Ratio 2.42), conservative leverage (Debt-to-Asset Ratio 31.16%), and highly efficient asset utilization (ROA 23.49%), maintaining robust balance sheet strength with ample liquidity for capital expenditures and research.
  • Current Ratio: 2.62 indicates strong short-term liquidity position
  • Quick Ratio: 2.42 confirms high-quality liquid assets
  • Debt-to-Asset Ratio: 31.16% shows conservative capital structure with moderate leverage
  • ROA (TTM): 23.49% reflects highly efficient asset utilization
  • Company maintains robust balance sheet strength with ample liquidity
  • Ample liquidity to fund ongoing capital expenditures and research initiatives
  • Company manages debt prudently
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset35.39%35.49%34.11%31.53%31.16%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio2.442.392.372.692.62