TSMBULLISH

TSM P/E Ratio Analysis

1.0x

Higher than 6% of Technology sector peers

Updated 10h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 1.0x means investors pay $1 for every $1 of annual earnings per share — a very low price-to-earnings multiple.

Sector Performance

6th percentile

TSM

1.0x

Sector Median

37.1x

Sector Avg

160.9x

Prior Period

1.0x(Aug 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 1.0x means investors pay $1 for every $1 of annual earnings per share — a very low price-to-earnings multiple.

This sits far below the sector median of 37.1x, placing TSM at the 6th percentile among technology peers, meaning most comparable stocks trade at much higher valuations. The trend data is N/A for the year-over-year change and the last 8 quarters, but the quarter-over-quarter change is -1.0%, with historical values of 1.0x and 1.0x, indicating the multiple has held essentially flat. A low, stable P/E like this suggests the market is pricing in limited earnings growth or assigning a heavy discount to the stock, which can be an opportunity if fundamentals are sound but a risk if the low multiple reflects structural issues. Given the overall BULLISH verdict on TSM, this metric supports that view: the 1.0x level offers a large valuation cushion relative to peers, and the flat trend does not signal deterioration. Directly, the P/E is consistent with a bullish stance because it implies you are buying $1 of earnings for only $1, a far cheaper entry than the sector norm.

Frequently Asked Questions

What does the P/E Ratio tell investors about TSM?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does TSM's P/E Ratio compare to its sector?

TSM's P/E Ratio of 1.0x compares to a Technology sector median of 37.1x, placing it in the 6th percentile.

Who are TSM's closest peers by P/E Ratio?

The closest Technology peers by P/E Ratio include: AAPL (37.1x), AMAT (36.9x), APH (37.6x), AKAM (37.6x), APP (38.8x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.