Taiwan Semiconductor Manufacturing Co Ltd
NYSE:TSM
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (12.5), the stock would be worth $268.13 (31% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 18.1 | $387.44 |
0%
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| 3-Year Average | 12.5 | $268.13 |
-31%
|
| 5-Year Average | 12.8 | $275.2 |
-29%
|
| Industry Average | 20.1 | $429.97 |
+11%
|
| Country Average | 14.6 | $312.15 |
-19%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
|
$50.4T
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/ |
Apr 2026
NT$2.9T
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= |
|
|
$50.4T
|
/ |
Dec 2026
NT$3.6T
|
= |
|
|
$50.4T
|
/ |
Dec 2027
NT$4.5T
|
= |
|
|
$50.4T
|
/ |
Dec 2028
NT$5.5T
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| TW |
|
Taiwan Semiconductor Manufacturing Co Ltd
NYSE:TSM
|
53.2T USD | 18.1 | 28.7 | |
| US |
|
NVIDIA Corp
NASDAQ:NVDA
|
4.9T USD | 36.4 | 41 | |
| US |
|
Broadcom Inc
NASDAQ:AVGO
|
2T USD | 55.2 | 80.2 | |
| US |
|
Micron Technology Inc
NASDAQ:MU
|
549.9B USD | 14.8 | 22.8 | |
| US |
|
Advanced Micro Devices Inc
NASDAQ:AMD
|
494.6B USD | 72.6 | 114.1 | |
| KR |
|
SK Hynix Inc
KRX:000660
|
701.7T KRW | 13.7 | 19.5 | |
| US |
|
Intel Corp
NASDAQ:INTC
|
326B USD | 28.6 | -1 220.8 | |
| US |
|
Texas Instruments Inc
NASDAQ:TXN
|
214.3B USD | 27.5 | 43.1 | |
| UK |
|
Arm Holdings PLC
NASDAQ:ARM
|
208.8B USD | 186.2 | 260.6 | |
| US |
|
Analog Devices Inc
NASDAQ:ADI
|
186.2B USD | 34.8 | 68.8 | |
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
146.1B USD | 10.8 | 27.2 |
Market Distribution
| Min | 0.8 |
| 30th Percentile | 10.5 |
| Median | 14.6 |
| 70th Percentile | 22.8 |
| Max | 2 788.3 |
Other Multiples
Taiwan Semiconductor Manufacturing Co Ltd
Glance View
In the heart of Asia's dynamic tech landscape stands Taiwan Semiconductor Manufacturing Co. Ltd., more commonly known as TSMC, a titan that has redefined how the world approaches semiconductor production. Born from Taiwan's burgeoning tech aspirations in 1987, TSMC emerged as a revolutionary force by embracing a business model unlike any before it: the pure-play foundry model. Rather than engaging in the traditional integrated device manufacturing, TSMC focused solely on fabricating semiconductors for its clientele, which included a diverse array of electronic device giants, from smartphone makers to automotive and industrial tech leaders. By harnessing cutting-edge technology and maintaining relentless dedication to R&D, TSMC became indispensable to its customers, transforming into the world's largest dedicated independent semiconductor foundry. What sets TSMC apart is its distinctive ability to produce high-performance chips at a scale and precision that few can rival. The company earns its revenue primarily by offering fabrication capabilities and comprehensive services—a meticulously orchestrated process where the amalgamation of customer's design blueprints and TSMC’s advanced manufacturing prowess brings microchips to life. With clients ranging from industry stalwarts like Apple, NVIDIA, and AMD to a host of nascent tech startups, TSMC thrives on its capacity to deliver everything from the most advanced 3nm chips to more mature node technologies. This versatility not only ensures a steady stream of revenue but also fortifies TSMC's niche as the linchpin of the semiconductor supply chain, steering the very heart of modern electronics.