Taiwan Semiconductor Manufacturing Company Limited (TSM) Stock Analysis — Fair Value, Risk & Moat Rating

Taiwan Semiconductor Manufacturing Company Limited (TSM) stock price is $387.44 as of the latest market close, traded on the NYSE exchange.

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 various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. It also involved in providing customer and engineering support services; manufacturing of masks; investment in technology start-up companies; research, designing, developing, manufacturing, packaging, testing, and sale of color filters; and investment activities.

Taiwan Semiconductor Manufacturing Company Limited has a market capitalization of $2.01T, classifying it as a mega-cap stock in the Technology sector.

Taiwan Semiconductor Manufacturing Company Limited operates in the Technology sector, specifically within the Semiconductors industry. It trades on the NYSE under the ticker symbol TSM.

Based on our valuation model, Taiwan Semiconductor Manufacturing Company Limited trades 4.5% above our fair value estimate — potentially overvalued.

• FairValueLabs Fair Value: $370.92
• Current Price: $387.44
• Valuation Zone: Fairly Valued

Based on 18 Wall Street analysts, the consensus price target for Taiwan Semiconductor Manufacturing Company Limited is $463.45, implying upside of 19.6% from the current price.

• Analyst High Target: $600.00
• Analyst Low Target: $351.00

Note: Analyst targets are shown for reference and are not used in our valuation model.

Here are the analyst consensus growth estimates for Taiwan Semiconductor Manufacturing Company Limited:

• Revenue growth (current year est.): 35.2%
• EPS growth (current year est.): 45.1%
• Revenue growth (next year est.): 25.9%
• EPS growth (next year est.): 24.9%

The price-to-earnings ratio measures how much investors pay per dollar of earnings:

• Trailing P/E (last 12 months): 33.1x
• Forward P/E (next 12 months est.): 20.1x
• FairValueLabs Fair P/E: 28.1x

Taiwan Semiconductor Manufacturing Company Limited has a beta of 1.25, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.

Taiwan Semiconductor Manufacturing Company Limited's balance sheet shows:

• Total Cash: $3.38T
• Total Debt: $1.02T
• Net Cash Position: $2.37T

A positive net cash position means the company holds more cash than debt, reducing financial risk.

Taiwan Semiconductor Manufacturing Company Limited generated $721.56B in trailing twelve-month free cash flow (from $2.35T in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.

Yes, Taiwan Semiconductor Manufacturing Company Limited pays a regular dividend. Here are the key metrics:

• Dividend Yield: 4.6%
• Payout Ratio: 27.9%
• Consecutive Years Paid: 23
• 5-Year Dividend Growth: -12.8%
• FairValueLabs Safety Grade: A

Taiwan Semiconductor Manufacturing Company Limited's Altman Z-Score is 3.05, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.

Taiwan Semiconductor Manufacturing Company Limited scores 3.4/5 stars (Narrow moat) in our moat analysis:

• ROIC Stability: 4/5
• Gross Margin Trend: 3/5
• Switching Costs: 3/5

A score above 3.5 suggests meaningful pricing power and a defensible market position.

Taiwan Semiconductor Manufacturing Company Limited's return on equity is 36.2%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.

TSM shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:

1. Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
2. Search for ticker symbol TSM
3. Place a market or limit order for your desired number of shares

This is not investment advice. Always do your own research before buying any stock.

FairValueLabs classifies Taiwan Semiconductor Manufacturing Company Limited as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.

The current CEO of Taiwan Semiconductor Manufacturing Company Limited is Dr. C. C. Wei Ph.D..

Earnings per share measures the company's profit allocated to each outstanding share:

• Trailing EPS (last 12 months): $11.70
• Forward EPS (next 12 months est.): $19.29
• Analyst consensus EPS (this year): $15.45
• Analyst consensus EPS (next year): $19.29