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 Rating9/10
Generated at:2026-04-30 17:41:41
Analysis based on 5 financial reports covering periods from 2024-12-31 to 2025-12-31. Data includes annual and quarterly financial statements. Current price data as of 2026-04-30. Note: There is a discrepancy in EPS currency (likely New Taiwan Dollars vs US Dollars) which was addressed in the valuation analysis by focusing on market-implied metrics.
Overview

Taiwan Semiconductor Manufactur (TSM) is the world's leading dedicated semiconductor foundry with a dominant position in advanced process technology. The company exhibits robust financial health, accelerating profitability with outstanding margins, and appears undervalued relative to its exceptional growth profile, presenting an attractive long-term investment opportunity.

Valuation
8/10
Profitability
10/10
Financial health
9/10
Operation Advice
  • Based on fundamental analysis, the current price of $396.06 presents an attractive entry point for a long-term investment.
  • The stock is considered undervalued with a fundamental target price range of $485 - $545.
  • Investors should consider buying at current levels or on any market-driven pullbacks.

Valuation

P/E TTM
32.60
P/E LYR
31.94
P/B MRQ
10.85
P/S TTM
--
AI Analysis
  • Valuation metrics suggest the stock is undervalued relative to its growth. The trailing P/E is 32.60 and forward P/E is 31.94, but the PEG ratio of approximately 0.71 indicates undervaluation. The P/S ratio of 0.54 is very low given the company's high margins. A fundamental target price range of $485 - $545 is justified.
  • The Trailing P/E is 32.60 and the Forward P/E is 31.94.
  • Given the company's high growth rate (~46% Net Income growth), the PEG Ratio would be approximately 0.71, which is generally considered undervalued (PEG < 1.0).
  • The P/B ratio of 10.85 is high but must be viewed in context of the company's extraordinary ROE (35.39%).
  • The P/S ratio of 0.54 is very low for a company with such high and expanding net margins.
  • Based on the provided data, TSM's valuation multiples (P/E, P/S) appear reasonable or even low relative to its stellar growth and profitability metrics.
  • The PEG ratio signals undervaluation.
  • At $396.06, with a P/E of 32.6 and PEG of ~0.71, the stock is undervalued relative to its growth profile.
  • A fundamental target price range of $485 - $545 is supported by applying a P/E of 40-45 to normalized forward EPS.
Valuation trend

Profitability

ROE TTM
35.39%
Net margin
45.03%
Gross margin
59.89%
Total revenue
3.81T
AI Analysis
  • Profitability metrics are outstanding and show accelerating growth with significant margin expansion. Revenue grew 31.61% and Net Income grew 46.42% year-over-year, with even stronger growth in recent quarters. Gross margin expanded to 59.89% and net margin to 45.03%, indicating strong pricing power and operational efficiency.
  • The latest annual report shows Revenue growth of 31.61% and Net Income growth of 46.42% year-over-year.
  • Quarterly data reveals this growth has been consistent and even stronger in recent periods (e.g., Q3 2025 Net Income growth of 51.79%).
  • Both Gross Margin (59.89%) and Net Margin (45.03%) have expanded significantly compared to the previous year (56.12% and 40.51%, respectively).
  • This margin expansion indicates pricing power, operational efficiency, and a favorable product mix.
  • The Return on Equity (ROE-TTM) of 35.39% is exceptionally high, indicating the company generates substantial profit from each dollar of shareholder equity.
  • Profitability metrics are outstanding and show accelerating growth.
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
  • The company exhibits a strong and healthy financial position with excellent liquidity, conservative leverage, and superior efficiency. The Current Ratio of 2.62 and Quick Ratio of 2.42 indicate strong short-term liquidity, while the Debt-to-Asset Ratio of 31.16% suggests a conservative capital structure. Return on Assets of 23.49% demonstrates superior asset utilization.
  • The Current Ratio of 2.62 and Quick Ratio of 2.42 indicate more than sufficient short-term assets to cover liabilities, providing a significant margin of safety for operations.
  • A Debt-to-Asset Ratio of 31.16% suggests a conservative capital structure.
  • The company is not overly reliant on debt financing, which provides stability and flexibility.
  • The exceptionally high Return on Assets (ROA-TTM) of 23.49% demonstrates superior efficiency in utilizing its asset base to generate profits.
  • The company exhibits a strong and healthy financial position.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset35.39%35.49%34.11%31.53%31.16%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio2.442.392.372.692.62