TSMBULLISH

TSM EV/EBITDA Analysis

4.9x

Higher than 17% of Technology sector peers

Updated 853h ago·SEC filings & market data

Key Takeaway

The EV/EBITDA ratio measures how many times a company’s operating earnings (before interest, taxes, depreciation, and amortization) an acquirer would pay for the whole business; at 4.9x, TSM trades at a low valuation multiple.

Sector Performance

17th percentile

TSM

4.9x

Sector Median

19.5x

Sector Avg

44.5x

Prior Period

4.7x(Sep 2026)

↓ Declining

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Deep Analysis

That is dramatically cheaper than the technology sector median of 19.5x, placing TSM in the 17th percentile among sector peers, meaning roughly 83% of comparable firms carry higher multiples. The metric has been stable for eight quarters, with a modest Year-over-year increase of +0.4% and a quarter-over-quarter rise of +4.3% to the current level. A low but stable EV/EBITDA suggests the market is not expanding the premium for TSM’s earnings power, while the recent

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 4.9x compares to a Technology sector median of 19.5x, placing it in the 17th percentile.

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

The closest Technology peers by EV/EBITDA include: MSFT (19.8x), AMAT (19.3x), CRM (18.9x), SQ (18.2x), ZI (15.7x).

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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.