Taiwan Semiconductor Manufacturing Co Ltd (TSM) is now in the Fair zone, suggesting that its current forward PE ratio of 22.56 is considered Fairly compared with the five-year average of 18.33. The fair price of Taiwan Semiconductor Manufacturing Co Ltd (TSM) is between 300.43 to 402.65 according to relative valuation method.

Relative Value

Fair Zone

300.43-402.65

Current Price：369.38

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Taiwan Semiconductor Manufacturing Co Ltd (TSM) has a current Price-to-Book (P/B) ratio of 8.66. Compared to its 3-year average P/B ratio of 8.19, the current P/B ratio is approximately 5.78% higher. Relative to its 5-year average P/B ratio of 7.47, the current P/B ratio is about 15.93% 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 2.67%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.71%, the current FCF yield is about -100.00% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for TSM competitors is 15.83, providing a benchmark for relative valuation. Taiwan Semiconductor Manufacturing Co Ltd Corp (TSM.N) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 25.52%, this premium appears sustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of TSM increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of TSM in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is TSM currently overvalued or undervalued?

What is Taiwan Semiconductor Manufacturing Co Ltd (TSM) fair value?

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. The fair price of Taiwan Semiconductor Manufacturing Co Ltd (TSM) is between 300.43 to 402.65 according to relative valuation method.

How does TSM's valuation metrics compare to the industry average?

The average P/S ratio for TSM's competitors is 15.83, providing a benchmark for relative valuation. Taiwan Semiconductor Manufacturing Co Ltd Corp (TSM) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 25.52%, this premium appears sustainable.

What is the current P/B ratio for Taiwan Semiconductor Manufacturing Co Ltd (TSM) as of Mar 02 2026?

As of Mar 02 2026, Taiwan Semiconductor Manufacturing Co Ltd (TSM) has a P/B ratio of 8.66. This indicates that the market values TSM at 8.66 times its book value.

What is the current FCF Yield for Taiwan Semiconductor Manufacturing Co Ltd (TSM) as of Mar 02 2026?

As of Mar 02 2026, Taiwan Semiconductor Manufacturing Co Ltd (TSM) has a FCF Yield of 0.00%. This means that for every dollar of Taiwan Semiconductor Manufacturing Co Ltd's market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Taiwan Semiconductor Manufacturing Co Ltd (TSM) as of Mar 02 2026?

As of Mar 02 2026, Taiwan Semiconductor Manufacturing Co Ltd (TSM) has a Forward P/E ratio of 22.56. This means the market is willing to pay $22.56 for every dollar of Taiwan Semiconductor Manufacturing Co Ltd's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Taiwan Semiconductor Manufacturing Co Ltd (TSM) as of Mar 02 2026?

As of Mar 02 2026, Taiwan Semiconductor Manufacturing Co Ltd (TSM) has a Forward P/S ratio of 0.00. This means the market is valuing TSM at $0.00 for every dollar of expected revenue over the next 12 months.

TSM Valuation