FCF Yield
Higher than 99% of Technology sector peers
Updated 24h ago
Sector Performance
99th percentileTSM
44.1%
Sector Median
2.7%
Sector Avg
2.0%
Deep Analysis
The current FCF Yield of 44.1% means that for every $100 invested in TSM, the company generates $44.10 in free cash flow (cash from operations minus capital spending) per share.
This is exceptionally high compared to the sector median of 2.7%, placing TSM in the 99th percentile among technology peers. Over the last eight quarters, the metric has been decreasing, with a year-over-year decline of -7.0% and a quarter-over-quarter increase of +6.5%. The combination of an extremely high level with a declining trend suggests that while TSM still offers an unusual cash return relative to its price, the downward direction may signal some compression in free cash flow generation or a rising share price. This metric strongly supports the overall BULLISH verdict because the 44.1% yield far exceeds nearly all sector peers, indicating a compelling cash return that offsets the recent small declines.
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 44.1% compares to a Technology sector median of 2.7%, placing it in the 99th percentile.
Who are TSM's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: KLIC (1.5%), IAC (1.5%), AVGO (1.5%), DDOG (1.4%), SMTC (1.2%).
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.
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44.1%
Sector Median
2.7%
Sector Avg
2.0%
How TSM's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.