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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: 396.06 USD 0.57% Market Closed
Market Cap: $2.1T

P/S

13.8
Current
55%
More Expensive
vs 3-y average of 8.9

Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.

P/S
13.8
=
Market Cap
$54.1T
/
Revenue
NT$4.1T

Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.

P/S
13.8
=
Market Cap
$54.1T
/
Revenue
NT$4.1T

Valuation Scenarios

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

If P/S returns to its 3-Year Average (8.9), the stock would be worth $255.41 (36% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-87%
Maximum Upside
No Upside Scenarios
Average Downside
59%
Scenario P/S Value Implied Price Upside/Downside
Current Multiple 13.8 $396.06
0%
3-Year Average 8.9 $255.41
-36%
5-Year Average 9.1 $262.04
-34%
Industry Average 2.8 $81.75
-79%
Country Average 1.8 $51.57
-87%

Forward P/S
Today’s price vs future revenue

Today's Market Cap Revenue Forward P/S
$54.1T
/
Apr 2026
NT$4.1T
=
13.8
Current
$54.1T
/
Dec 2026
NT$5.1T
=
10.6
Forward
$54.1T
/
Dec 2027
NT$6.4T
=
8.4
Forward
$54.1T
/
Dec 2028
NT$7.9T
=
6.8
Forward
$54.1T
/
Dec 2029
NT$8.2T
=
6.6
Forward
$54.1T
/
Dec 2030
NT$10T
=
5.4
Forward

Forward P/S shows whether today’s P/S still looks high or low once future revenue are taken into account.

Peer Comparison

All Multiples
P/S
P/E
All Countries
Close
Market Cap P/S P/E
TW
Taiwan Semiconductor Manufacturing Co Ltd
NYSE:TSM
56.5T USD 13.8 29.3
US
NVIDIA Corp
NASDAQ:NVDA
4.9T USD 22.5 40.4
US
Broadcom Inc
NASDAQ:AVGO
2T USD 29 79.2
US
Micron Technology Inc
NASDAQ:MU
583.4B USD 10 24.2
US
Advanced Micro Devices Inc
NASDAQ:AMD
577.8B USD 16.7 133.3
US
Intel Corp
NASDAQ:INTC
474.6B USD 8.8 -149.5
KR
SK Hynix Inc
KRX:000660
701.7T KRW 9.1 20.7
US
Texas Instruments Inc
NASDAQ:TXN
254.9B USD 13.8 47.8
UK
Arm Holdings PLC
NASDAQ:ARM
223.4B USD 47.8 278.9
US
Analog Devices Inc
NASDAQ:ADI
196.4B USD 16.7 72.6
US
Qualcomm Inc
NASDAQ:QCOM
192.9B USD 4.3 35.9

Market Distribution

In line with most companies in Taiwan
Percentile
63rd
Based on 872 companies
63rd percentile
2.6
Low
0.1 — 1.1
Typical Range
1.1 — 3.1
High
3.1 —
Distribution Statistics
Taiwan
Min 0.1
30th Percentile 1.1
Median 1.8
70th Percentile 3.1
Max 384 578.4

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 28%
Intrinsic Value
Price $396.06
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