Taiwan Semiconductor Manufacturing Company LimitedTSM
NYSE • Technology
$392.61
P/E
1.05
PEG
0.02
FCF Yield
—
Rev Growth YoY
+35.1% YoY
Gross Margin
66.2%
Health Score
9/10
D/E Ratio
0.20
Confidence
—
Business Snapshot
Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated semiconductor foundry, manufacturing chips for global fabless design firms. The company operates in the semiconductor industry as the dominant pure-play manufacturer, holding a commanding share of advanced-node production essential for AI accelerators, mobile processors, and high-performance computing chips. TTM revenue stands at $4.11 trillion, reflecting the immense scale of its operations as the backbone of the global chip supply chain. The defining characteristic of TSMC is its technological moat — it consistently produces the industry's most advanced process nodes that few competitors can replicate, giving it pricing power and customer lock-in.
Financial Health
Gross margin widened to 66.2% from 62.3% a year earlier, while net margin reached 47.0%, reflecting exceptional operating leverage and pricing discipline. The balance sheet is fortress-grade: debt-to-equity stands at just 0.2x and the current ratio of 2.51x signals ample short-term liquidity to fund expansion...
Risk Assessment
- VALUATION — The current price of $392.61 sits at a 156.5% premium to the FMP DCF fair value of $153.04, signalling potential overvaluation relative to fundamental cash flow projections.
- VALUATION DIVERGENCE — The FMP DCF estimate of $153.04 contrasts sharply with the Python DCF which was not calculable due to negative or unavailable FCF inputs, introducing model uncertainty.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — The stock trades 6.9% below its 52-week high of $421.97 and well above the midpoint of the annual range, reflecting strong recent performance but limited upside buffer before testing resistance.
- EARNINGS QUALITY — While all 4 recent quarters beat estimates (a positive), the extreme P/E of 1.05x suggests earnings may contain non-recurring items or accounting effects...