TSMBULLISH

TSM FCF Yield Analysis

44.6%

Higher than 100% of Technology sector peers

Updated 853h ago·SEC filings & market data

Key Takeaway

A 44.6% free cash flow yield means Taiwan Semiconductor generates net cash after capital spending equal to 44.6% of its market value each year — a high cash return for investors relative to the price they pay.

Sector Performance

100th percentile

TSM

44.6%

Sector Median

2.5%

Sector Avg

3.8%

Prior Period

46.0%(Sep 2026)

↓ Declining

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Deep Analysis

This sits well above the Technology sector

Frequently Asked Questions

What does the FCF Yield tell investors about TSM?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does TSM's FCF Yield compare to its sector?

TSM's FCF Yield of 44.6% compares to a Technology sector median of 2.5%, placing it in the 100th percentile.

Who are TSM's closest peers by FCF Yield?

The closest Technology peers by FCF Yield include: SMAR (2.4%), AAPL (2.2%), AMBA (2.1%), MODN (2.0%), MSFT (1.9%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.