TSM PEG Ratio Analysis
Higher than 3% of Technology sector peers
Updated 853h ago·SEC filings & market data
Key Takeaway
The PEG ratio (price-to-earnings divided by expected earnings growth) is 0.01x, meaning the stock's valuation is extremely low relative to its projected profit growth, which appears attractive at face value.
Sector Performance
3th percentileTSM
0.01x
Sector Median
0.85x
Sector Avg
2.53x
Prior Period
0.02x(Jul 2026)
Deep Analysis
The PEG ratio (price-to-earnings divided by expected earnings growth) is 0.01x, meaning the stock's valuation is extremely low relative to its projected profit growth, which appears attractive at face value.
This sits far below the sector median of 0.78x and places TSM at the 6th percentile among technology peers, indicating nearly all comparable companies carry a higher PEG. Trend and historical change data are unavailable (YoY, QoQ, and last-8-quarter figures all show N/A), so the ratio's direction cannot be confirmed from this dataset. The combination of an extremely low level with no observable trend suggests either a market mispricing or a reliance on unusually optimistic growth forecasts—both carry risk if growth expectations later decline. For a non-expert investor, this level signals a potential valuation bargain only if the underlying earnings growth assumption holds; otherwise the low PEG is misleading. This metric supports the overall bullish verdict because it implies the market has priced in limited value relative to growth, offering upside if performance continues
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 0.01x compares to a Technology sector median of 0.85x, placing it in the 3th percentile.
Who are TSM's closest peers by PEG Ratio?
The closest Technology peers by PEG Ratio include: MSFT (0.85x), AVGO (0.71x), PLTR (0.60x), MRVL (0.59x), ANSS (1.12x).
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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0.01x
Sector Median
0.85x
Sector Avg
2.53x
How TSM's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.