Taiwan Semiconductor Manufacturing Company LimitedTSM
NYQ • Technology
$482.30
P/E
1.12
PEG
0.01
FCF Yield
39.7%
Rev Growth YoY
+36.0% YoY
Gross Margin
67.7%
Health Score
8/10
D/E Ratio
0.16
Confidence
MEDIUM
Business Snapshot
Taiwan Semiconductor Manufacturing Company is the world's largest dedicated semiconductor foundry, manufacturing chips on a contract basis for fabless designers across smartphones, high-performance computing, automotive, and AI accelerators. It operates in the highly capital-intensive advanced-node foundry market, where it functions as the dominant player rather than a challenger — the scale of its TTM revenue of $4.44T and net income of $2.22T reflects that leadership. With a market capitalisation of $2.50T, it sits firmly in the large-cap tier. What sets the business apart is the sheer capital intensity and process-technology moat required to run leading-edge fabrication at scale, a barrier that few competitors can replicate. The company's gross margin of 67.7% on that revenue base underscores the pricing power that comes with being the go-to manufacturer for the most advanced chips.
Financial Health
Gross margin came in at 67.7%, up from 66.2% in the prior year, while net margin (TTM) reached 50.7% — a combination that signals both pricing power and operating discipline, with margins improving rather than deteriorating. The balance sheet is conservative: debt/equity of 0.16x and a current ratio of 2.46x mean the company carries very little leverage relative to its equity and has ample short-term liquidity to cover obligations...
Risk Assessment
- VALUATION — Price/Book of 99.29x and Price/Sales of 14.94x indicate the market is paying an extreme premium for assets and revenue, even as the headline P/E of 1.12x sits far below the 41.9x sector average.
- VALUATION DIVERGENCE — The Python DCF estimate of $10,077.31 implies a 95.2% discount from the $482.30 current price, an unusually large gap that signals high model uncertainty given the flagged sensitivity to terminal growth.
- 52-WEEK POSITION — At $482.30, the price sits just below the 52-week high of $487.47 and far above the low of $266.82, meaning the stock is trading near the top of its range with limited recent downside cushion.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — The company beat estimates in 4 of 4 recent quarters, which supports guidance credibility but also raises the bar for future quarters to avoid a disappointment.
- CONCENTRATION — Revenue is heavily tied to leading-edge foundry demand, and the $4.44T TTM revenue base depends on continued advanced-node capacity utilisation....
Gross margin came in at 67.7%, up from 66.2% in the prior year, while net margin (TTM) reached 50.7% — a combination that signals both pricing power and operating discipline, with margins improving rather than deteriorating. The balance sheet is conservative: debt/equity of 0.16x and a current ratio of 2.46x mean the company carries very little leverage relative to its equity and has ample short-term liquidity to cover obligations. Free cash flow of $992.38B against a market cap of $2.50T produces an FCF yield of 39.7%, indicating the business converts a very large share of its earnings into actual cash. Return on equity of 40.0% reinforces that this is a highly efficient capital allocator. For an investor, this profile implies substantial capacity to fund reinvestment in new fabrication capacity, sustain dividends, and absorb cyclical downturns without resorting to dilution.
- VALUATION — Price/Book of 99.29x and Price/Sales of 14.94x indicate the market is paying an extreme premium for assets and revenue, even as the headline P/E of 1.12x sits far below the 41.9x sector average. - VALUATION DIVERGENCE — The Python DCF estimate of $10,077.31 implies a 95.2% discount from the $482.30 current price, an unusually large gap that signals high model uncertainty given the flagged sensitivity to terminal growth. - 52-WEEK POSITION — At $482.30, the price sits just below the 52-week high of $487.47 and far above the low of $266.82, meaning the stock is trading near the top of its range with limited recent downside cushion. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - EARNINGS QUALITY — The company beat estimates in 4 of 4 recent quarters, which supports guidance credibility but also raises the bar for future quarters to avoid a disappointment. - CONCENTRATION — Revenue is heavily tied to leading-edge foundry demand, and the $4.44T TTM revenue base depends on continued advanced-node capacity utilisation.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives