TSM PEG Ratio Analysis
Higher than 6% of Technology sector peers
Updated 421h ago·SEC filings & market data
Key Takeaway
The PEG ratio combines the price-to-earnings (P/E) multiple with expected earnings growth, so a lower number can indicate a stock is cheap relative to its growth prospects.
Sector Performance
6th percentileTSM
0.02x
Sector Median
0.67x
Sector Avg
2.31x
Prior Period
0.07x(Apr 2026)
Deep Analysis
The PEG ratio combines the price-to-earnings (P/E) multiple with expected earnings growth, so a lower number can indicate a stock is cheap relative to its growth prospects.
TSM’s current PEG of 0.02x is far below the technology sector median of 0.59x and places it in the 6th percentile among peers—meaning only 6% of sector companies have a lower (more attractive) PEG. Because the year-over-year and quarter-over-quarter changes are both listed as N/A, there is no historical trend to assess. The combination of an exceptionally low PEG level with no trend data implies a potential valuation opportunity, but the lack of historical context adds uncertainty to that conclusion. This metric supports the overall BULLISH verdict, as a 0.02x PEG typically signals that the stock’s price has not yet caught up to its earnings growth expectations.
Frequently Asked Questions
What does the PEG Ratio tell investors about TSM?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does TSM's PEG Ratio compare to its sector?
TSM's PEG Ratio of 0.02x compares to a Technology sector median of 0.67x, placing it in the 6th percentile.
Who are TSM's closest peers by PEG Ratio?
The closest Technology peers by PEG Ratio include: AVGO (0.71x), GLOB (0.63x), MRVL (0.59x), QRVO (0.58x), MSFT (1.07x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.02x
Sector Median
0.67x
Sector Avg
2.31x
How TSM's PEG Ratio compares to sector peers.
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