TSMBULLISH

TSM Return on Equity (ROE) Analysis

40.0%

Higher than 83% of Technology sector peers

Updated 9h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; TSM's 40.0% means it earns $0.40 for every $1 of equity invested.

Sector Performance

83th percentile

TSM

40.0%

Sector Median

8.7%

Sector Avg

-3.3%

Prior Period

36.2%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; TSM's 40.0% means it earns $0.40 for every $1 of equity invested.

This is far above the sector median of 7.5%, placing TSM at the 83rd percentile among sector peers. The trend is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, with only the single historical value of 40.0% reported. Because the ROE level is very high but the trend is unknown, the main risk is whether this performance can be sustained, while the opportunity is that current profitability is already strong. This high ROE supports the overall BULLISH verdict, as strong returns on equity

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about TSM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does TSM's Return on Equity (ROE) compare to its sector?

TSM's Return on Equity (ROE) of 40.0% compares to a Technology sector median of 8.7%, placing it in the 83th percentile.

Who are TSM's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: SQ (0.0%), CRWD (-0.2%), MDB (-1.0%), ZS (-3.7%), APLD (-5.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.