TSMBULLISH

TSM EV/EBITDA Analysis

4.8x

Higher than 17% of Technology sector peers

Updated 9h ago·SEC filings & market data

Key Takeaway

EV/EBITDA compares a company's total value, including debt and equity, to its operating earnings before interest, taxes, depreciation, and amortization.

Sector Performance

17th percentile

TSM

4.8x

Sector Median

19.1x

Sector Avg

44.4x

Prior Period

4.8x(Aug 2026)

→ Stable

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Deep Analysis

EV/EBITDA compares a company's total value, including debt and equity, to its operating earnings before interest, taxes, depreciation, and amortization.

At 4.8x, TSM's multiple is far below the sector median of 19.3x, placing it in the 17th percentile among technology peers, meaning most comparable companies trade at higher multiples. The metric is decreasing: it fell 9.4% quarter over quarter from 5.3x to 4.8x, while year-over-year data is not available. A low and falling EV/EBITDA can signal either a cheaper entry point or deteriorating earnings expectations, so this combination carries both opportunity and risk. This valuation level supports the overall BULLISH verdict because a 4.8x multiple against a 19.3x sector median suggests considerable room for multiple expansion if performance holds.

Frequently Asked Questions

What does the EV/EBITDA tell investors about TSM?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does TSM's EV/EBITDA compare to its sector?

TSM's EV/EBITDA of 4.8x compares to a Technology sector median of 19.1x, placing it in the 17th percentile.

Who are TSM's closest peers by EV/EBITDA?

The closest Technology peers by EV/EBITDA include: MSFT (18.9x), AMAT (19.3x), SQ (18.2x), ZI (15.7x), CRM (15.5x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.