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Taiwan Semiconductor Manufacturing Co Ltd
NYSE:TSM

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Taiwan Semiconductor Manufacturing Co Ltd
NYSE:TSM
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Price: 387.44 USD 5.26% Market Closed
Market Cap: $2T

EV/EBITDA

18.1
Current
44%
More Expensive
vs 3-y average of 12.5

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.

EV/EBITDA
18.1
=
Enterprise Value
$50.4T
/
EBITDA
NT$2.9T

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.

EV/EBITDA
18.1
=
Enterprise Value
$50.4T
/
EBITDA
NT$2.9T

Valuation Scenarios

Taiwan Semiconductor Manufacturing Co Ltd is trading above its 3-year average

If EV/EBITDA returns to its 3-Year Average (12.5), the stock would be worth $268.13 (31% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-31%
Maximum Upside
+11%
Average Downside
17%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 18.1 $387.44
0%
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
/
Apr 2026
NT$2.9T
=
18.1
Current
$50.4T
/
Dec 2026
NT$3.6T
=
13.9
Forward
$50.4T
/
Dec 2027
NT$4.5T
=
11.2
Forward
$50.4T
/
Dec 2028
NT$5.5T
=
9.1
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close
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

Lower than 100% of companies in Taiwan
Percentile
0th
Based on 771 companies
0th percentile
0.7
Low
0.8 — 10.5
Typical Range
10.5 — 22.8
High
22.8 —
Distribution Statistics
Taiwan
Min 0.8
30th Percentile 10.5
Median 14.6
70th Percentile 22.8
Max 2 788.3

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.

TSM Intrinsic Value
283.23 USD
Overvaluation 27%
Intrinsic Value
Price $387.44
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