P/E Ratio
Higher than 2% of Technology sector peers
Updated 19h ago
Sector Performance
2th percentileTSM
1.1x
Sector Median
41.4x
Sector Avg
56.3x
Deep Analysis
Taiwan Semiconductor Manufacturing Company Limited (TSM) has a P/E Ratio of 1.1x as of May 2026.
This places TSM in the 2th percentile of the Technology sector, which has a median P/E Ratio of 41.4x and a sector average of 56.3x. TSM's P/E Ratio is 97.4% below the sector median, a significant divergence that warrants closer examination. In context: 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.
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 1.1x compares to a Technology sector median of 41.4x, placing it in the 2th percentile.
Who are TSM's closest peers by P/E Ratio?
The closest Technology peers by P/E Ratio include: APH (37.6x), AAPL (35.6x), ORCL (32.8x), MNDY (29.6x), MSFT (24.1x).
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.
Master TSM's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full TSM research report →TSM
1.1x
Sector Median
41.4x
Sector Avg
56.3x
How TSM's P/E Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.