Taiwan Semiconductor Valuation
| TSM Stock | USD 189.35 2.30 1.20% |
At this time, the company appears to be undervalued. Taiwan Semiconductor has a current Real Value of $199.97 per share. The regular price of the company is $189.35. Our model measures the value of Taiwan Semiconductor from inspecting the company fundamentals such as Shares Outstanding of 5.19 B, operating margin of 0.49 %, and Return On Equity of 0.3 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Taiwan Semiconductor's valuation include:
Price Book 7.6026 | Enterprise Value | Enterprise Value Ebitda 20.0008 | Price Sales 0.3434 | Forward PE 21.5517 |
Undervalued
Today
Please note that Taiwan Semiconductor's price fluctuation is very steady at this time. Calculation of the real value of Taiwan Semiconductor is based on 3 months time horizon. Increasing Taiwan Semiconductor's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Taiwan stock is determined by what a typical buyer is willing to pay for full or partial control of Taiwan Semiconductor Manufacturing. Since Taiwan Semiconductor is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Taiwan Stock. However, Taiwan Semiconductor's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 189.35 | Real 199.97 | Target 231.58 | Hype 188.77 | Naive 192.53 |
The intrinsic value of Taiwan Semiconductor's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Taiwan Semiconductor's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Taiwan Semiconductor Manufacturing helps investors to forecast how Taiwan stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Taiwan Semiconductor more accurately as focusing exclusively on Taiwan Semiconductor's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Taiwan Semiconductor's intrinsic value based on its ongoing forecasts of Taiwan Semiconductor's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Taiwan Semiconductor's closest peers.
Taiwan Semiconductor Cash |
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Taiwan Valuation Trend
Knowing Taiwan Semiconductor's actual value is paramount for traders when making sound investment determinations. Using both Taiwan Semiconductor's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Taiwan Semiconductor Total Value Analysis
Taiwan Semiconductor Manufacturing is at this time projected to have company total value of 806.14 B with market capitalization of 994 B, debt of 986.46 B, and cash on hands of 13.52 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Taiwan Semiconductor fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
806.14 B | 994 B | 986.46 B | 13.52 B |
Taiwan Semiconductor Investor Information
About 17.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.3. Taiwan Semiconductor recorded earning per share (EPS) of 6.9. The entity last dividend was issued on the 18th of March 2025. The firm had 1005:1000 split on the 15th of July 2009. Based on the analysis of Taiwan Semiconductor's profitability, liquidity, and operating efficiency, Taiwan Semiconductor Manufacturing may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.28 | 0.4568 |
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| Total Cash From Operating Activities | 1.9 T | 1.8 T |
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| Operating Income | 1.4 T | 1.3 T |
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Taiwan Semiconductor Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Taiwan Semiconductor has an asset utilization ratio of 43.25 percent. This suggests that the Company is making $0.43 for each dollar of assets. An increasing asset utilization means that Taiwan Semiconductor Manufacturing is more efficient with each dollar of assets it utilizes for everyday operations.Taiwan Semiconductor Ownership Allocation
Taiwan Semiconductor shows a total of 5.19 Billion outstanding shares. About 83.25 % of Taiwan Semiconductor outstanding shares are held by general public with 0.04 (%) owned by insiders and only 16.71 % by institutional holders. Please note that on February 14, 2025, Representative Michael McCaul of US Congress acquired $15k to $50k worth of Taiwan Semiconductor's common stock.Taiwan Semiconductor Profitability Analysis
The company reported the last year's revenue of 2.89 T. Total Income to common stockholders was 1.17 T with profit before taxes, overhead, and interest of 1.62 T.Taiwan Semiconductor Past Distributions to stockholders
About Taiwan Semiconductor Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Taiwan Semiconductor Manufacturing. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Taiwan Semiconductor based exclusively on its fundamental and basic technical indicators. By analyzing Taiwan Semiconductor's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Taiwan Semiconductor's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Taiwan Semiconductor. We calculate exposure to Taiwan Semiconductor's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Taiwan Semiconductor's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.6 T | 1.7 T | |
| Pretax Profit Margin | 0.49 | 0.29 | |
| Operating Profit Margin | 0.46 | 0.28 | |
| Net Profit Margin | 0.41 | 0.26 | |
| Gross Profit Margin | 0.56 | 0.37 |
Taiwan Semiconductor Quarterly Retained Earnings |
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A single share of Taiwan Semiconductor represents a small ownership stake in the entity. As a stockholder of Taiwan, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Taiwan Semiconductor Dividends Analysis For Valuation
At this time, Taiwan Semiconductor's Dividend Yield is very stable compared to the past year. As of the 25th of February 2025, Dividend Payout Ratio is likely to grow to 0.34, though Dividends Paid is likely to grow to (344.9 B). . As of the 25th of February 2025, Retained Earnings is likely to grow to about 4.1 T. Also, Earnings Yield is likely to grow to 0.05
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -363.1 B | -344.9 B | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.31 | 0.34 | |
| Dividend Paid And Capex Coverage Ratio | 1.38 | 1.32 |
There are various types of dividends Taiwan Semiconductor can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Taiwan shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Taiwan Semiconductor Manufacturing directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Taiwan pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Taiwan Semiconductor by the value of the dividends paid out.
Taiwan Semiconductor Growth Indicators
Investing in growth stocks can be very risky. If the company such as Taiwan Semiconductor does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 5.2 B | |
| Quarterly Earnings Growth Y O Y | 0.57 | |
| Forward Price Earnings | 21.5517 |
Taiwan Semiconductor Current Valuation Indicators
Taiwan Semiconductor's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Taiwan Semiconductor's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Taiwan Semiconductor, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Taiwan Semiconductor's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Taiwan Semiconductor's worth.When determining whether Taiwan Semiconductor is a strong investment it is important to analyze Taiwan Semiconductor's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Taiwan Semiconductor's future performance. For an informed investment choice regarding Taiwan Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Taiwan Semiconductor Manufacturing. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Taiwan Semiconductor. If investors know Taiwan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Taiwan Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.57 | Dividend Share 17 | Earnings Share 6.9 | Revenue Per Share | Quarterly Revenue Growth 0.388 |
The market value of Taiwan Semiconductor is measured differently than its book value, which is the value of Taiwan that is recorded on the company's balance sheet. Investors also form their own opinion of Taiwan Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is Taiwan Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Taiwan Semiconductor's market value can be influenced by many factors that don't directly affect Taiwan Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Taiwan Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Taiwan Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taiwan Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.