Taiwan Semiconductor Manufacturing Company LimitedTSM
NYQ • Technology
$434.16
P/E
1.17
PEG
0.02
FCF Yield
44.1%
Rev Growth YoY
+35.1% YoY
Gross Margin
66.2%
Health Score
10/10
D/E Ratio
0.18
Confidence
MEDIUM
Business Snapshot
Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated independent semiconductor foundry, manufacturing advanced logic chips for clients including Apple, NVIDIA, and AMD. The company operates in the highly capital-intensive semiconductor fabrication industry, where it holds a dominant competitive position as the clear market leader in leading-edge process nodes (5nm, 3nm, and below). With a massive $2.25 trillion market capitalisation, TSMC is a mega-cap company that generated trailing twelve-month (TTM) revenue of approximately $4.10 trillion (in New Taiwan Dollars). Its defining characteristic is an unparalleled technological moat in advanced chip manufacturing, making it effectively a bottleneck supplier for the world's most sophisticated processors.
Financial Health
TSMC's financial health is exemplary. Gross margin expanded to 66.2% from 62.3% in the prior year, while net margin stands at a robust 47.0%, demonstrating strong pricing power and operational efficiency...
Risk Assessment
- VALUATION — Price/Book of 97.54x is extraordinarily high, indicating the market prices the stock based on future earnings power, not on book assets.
- VALUATION DIVERGENCE — The gap between the current market price ($434.16) and the Python DCF estimate ($8,860.83) is so vast (a 95% discount) that it suggests a severe disconnect between the simplified model's inputs and market reality, creating significant uncertainty in valuation.
- CURRENCY DISTORTION — Key metrics like P/E (1.17x) and PEG (0.02x) are severely distorted because revenue, net income, and cash flow figures are denominated in New Taiwan Dollars while the stock trades in US Dollars, rendering standard ratio comparisons unreliable.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — While the stock is trading 9.4% below its 52-week high of $479.0 and well above its low of $223.7, the absence of technical indicator data prevents a clear assessment of short-term price momentum....
TSMC's financial health is exemplary. Gross margin expanded to 66.2% from 62.3% in the prior year, while net margin stands at a robust 47.0%, demonstrating strong pricing power and operational efficiency. The balance sheet is virtually fortress-grade, with a Debt/Equity ratio of just 0.18x and a Current Ratio of 2.49x, indicating ample liquidity and very low leverage. Free cash flow is enormous at $992.38 billion, translating to a stellar FCF yield of 44.1%. This level of cash generation provides immense capacity for reinvestment in R&D and capital expenditure, as well as a sustainable and growing dividend.
- VALUATION — Price/Book of 97.54x is extraordinarily high, indicating the market prices the stock based on future earnings power, not on book assets. - VALUATION DIVERGENCE — The gap between the current market price ($434.16) and the Python DCF estimate ($8,860.83) is so vast (a 95% discount) that it suggests a severe disconnect between the simplified model's inputs and market reality, creating significant uncertainty in valuation. - CURRENCY DISTORTION — Key metrics like P/E (1.17x) and PEG (0.02x) are severely distorted because revenue, net income, and cash flow figures are denominated in New Taiwan Dollars while the stock trades in US Dollars, rendering standard ratio comparisons unreliable. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - 52-WEEK POSITION — While the stock is trading 9.4% below its 52-week high of $479.0 and well above its low of $223.7, the absence of technical indicator data prevents a clear assessment of short-term price momentum.
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