Intrinsiqq
Taiwan Semiconductor Manufacturing Company Ltd. ADR logoTaiwan Semiconductor Manufacturing Company Ltd. ADRTSM
$412.38-4.52%
Taiwan Semiconductor Manufacturing Company Ltd. ADR logo

Taiwan Semiconductor Manufacturing Company Ltd. ADR

TSM

$412.38

-$19.52 (-4.52%)

⊜ Compare
ProfitabilityStrong marginsGrowthAcceleratingCash FlowStrong conversionValuationNot cheap
What stands out

Margins and capital returns are both well above average: 50.83% operating margin, ROIC at 26.82%. Consistent with durable pricing power, though that alone doesn't make it a buy.

What's changing

Revenue up 26.8% YoY with margins expanding 5.2pp.

What deserves caution

At 31x earnings, the current multiple leaves limited room for execution misses or growth deceleration.

Valuation context

31.1x earnings, 61.9x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.

Price History

+45.5%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market CapTWD 69.62T
EPSTWD 431.35
P/E31.12
P/FCF61.90
EV/EBITDA21.24
FCF Yield1.6%
Div. Yield0.76%
Net Debt/FCF-1.8x
52-Week Range
$275.06$485.80

Profitability & Returns

Revenue (TTM)

TWD 4.44T

▲ +26.8% YoY

Net Income (TTM)

TWD 2.22T

▲ +41.1% YoY

Op. Margin

56.10%

▲ +5.2pp YoY

ROIC

26.82%

▲ +4.1pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

TWD 1.12T

▲ +11.0% YoY

Op. Cash Flow (TTM)

TWD 2.63T

▲ +15.6% YoY

Net Debt

-TWD 2.06T

Net Cash Position

Cash & Equiv.

TWD 3.13T

3Y CAGR: +18.9%

3Y CAGR: +24.0%

Continue Research

Is Taiwan Semiconductor Manufacturing Company Ltd. ADR (TSM) overvalued?

At a P/E of 31.1 and a price-to-free-cash-flow of 61.9, Taiwan Semiconductor Manufacturing Company Ltd. ADR (TSM) trades below a two-stage DCF intrinsic value of about TWD 11,344.13 per share, so at TWD 412.38 the stock looks undervalued (2,650.9% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Taiwan Semiconductor Manufacturing Company Ltd. ADR scores 78/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.8%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Taiwan Semiconductor Manufacturing Company Ltd. ADR's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about TWD 11,344.13 per share for TSM, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around TWD 8,508.10. At today's TWD 412.38, that puts the stock about 2,650.9% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Taiwan Semiconductor Manufacturing Company Ltd. ADR a high-quality business?+

Taiwan Semiconductor Manufacturing Company Ltd. ADR scores 78 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 56.1% operating margin and a 26.8% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Taiwan Semiconductor Manufacturing Company Ltd. ADR (TSM) pay a dividend, and how much?+

Yes, Taiwan Semiconductor Manufacturing Company Ltd. ADR pays a regular dividend of about TWD 102.50 per share per year (typically in quarterly installments), a yield of roughly 0.8% at the current price. That is a payout ratio of about 24.0% of earnings, so the dividend is amply covered by earnings. Taiwan Semiconductor Manufacturing Company Ltd. ADR has grown the dividend at roughly 15.1% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For TSM's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Taiwan Semiconductor Manufacturing Company Ltd. ADR a good stock to buy right now?+

That depends on valuation and quality together, not either alone. TSM currently trades below its estimated intrinsic value and scores 78/100 on quality (solid). It also yields about 0.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

Related stocks: Semiconductors

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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