TSM · MarketGist

Quality Scorecard Growth

A96/100

✅ Pricing power (gross margin) 62% Gross margin 62% — wide margins, likely pricing power

✅ Return on equity 36% ROE 36% — high returns on capital

✅ Leverage (net debt / EBITDA) net cash Net cash — $2289.2B more cash than debt

✅ Interest coverage 157x EBIT covers interest 157x — comfortably covered

🟡 Earnings consistency (revenue) 1/3 down 1 revenue-down year(s) in 3 — one down year

✅ Earnings growth (net income YoY) +47% Net income +47% YoY — earnings growing

✅ Cash conversion (CFO/NI) 134% Operating cash ÷ net income 134% — earnings convert to cash

✅ Operating margin trend improving Operating margin improving

✅ Revenue growth 35% Revenue +35% — strong demand growth

✅ Growth trajectory accelerating YoY +32% vs +15% prior 2-yr avg — accelerating

✅ Dilution control -0.0%/yr Shares -0.0% YoY — dilution controlled

✅ Rule of 40 61 growth 35% + FCF margin 26% = 61 — healthy growth + profitability

Growth-stage checklist (proxy metrics from yfinance). 12 of 12 criteria scored. Not financial advice.

Buy-Now Score

98/100

Quality ×40%96

Trajectory ×30%100

Valuation ×30%100

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$429.81$6,401.56

Price $477.57DCF $5,819.60 (+1119%)Analyst $487.56 (+2%)MarketGist fair $1,553.97 (+225%)

DCF: 33% start growth → 2.5%, 10.8% discount (band $4,617.39–$7,482.29). Analyst: 18 analysts. MarketGist fair = 80% analyst + 20% DCF. Not financial advice.

Key Trends (6-yr)

GAAP EPS

▲ +46.4% YoY

Sales

▲ +31.6% YoY

Shares Outstanding

▲ +0.0% YoY

Company Overview

Basic Information

Company Name: Taiwan Semiconductor Manufacturing Company Limited

Symbol: TSM

Exchange: NYQ

Sector: Technology

Industry: Semiconductors

Company Details

Country: Taiwan

City: Hsinchu City

Employees: 76,907

Market Cap: $2.48T

Website: https://www.tsmc.com

Business Description

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also involved in providing customer and engineering support services; manufacturing of masks; investment in technology start-up companies; research, designing, developing, manufacturing, packaging, testing, and sale of color filters; and investment activities. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. Taiwan Semiconductor Manufacturing Company Limited was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.

Key Metrics

Price & Valuation

Current Price

$477.57

Market Cap

$2.48T

P/E Ratio

41.49

Forward P/E

23.73

PEG Ratio

1.36

Price to Book

107.29

Profitability

Profit Margin: 46.51%

Operating Margin: 58.10%

Gross Margin: 61.87%

Return on Equity (ROE): 36.21%

Return on Assets (ROA): 17.32%

Revenue Growth: 35.10%

Financial Health

Current Ratio: 2.49

Quick Ratio: 2.19

Debt to Equity: 18.45

Total Debt: $1.09T

Total Cash: $3.38T

Beta: 1.25

Trading & Analyst Info

52-Week Range

52-Week High: $479.00

52-Week Low: $221.18

50-Day Average: $414.48

200-Day Average: $341.14

Analyst Recommendations

Recommendation: STRONG_BUY

Target Mean Price: $487.56

Target High: $700.00

Target Low: $354.00

Price graph

Price vs Rates, Inflation & Volume (long-term)

Start year: 2020

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Fundamental Trends

Quarterly Verdict

➕ Pricing power (gross margin): Gross margin 62% — wide margins, likely pricing power

➕ Return on equity: ROE 36% — high returns on capital

➕ Leverage (net debt / EBITDA): Net cash — $2289.2B more cash than debt

➕ Interest coverage: EBIT covers interest 157x — comfortably covered

➕ Earnings growth (net income YoY): Net income +47% YoY — earnings growing

➕ Cash conversion (CFO/NI): Operating cash ÷ net income 134% — earnings convert to cash

➕ Operating margin trend: Operating margin improving

➕ Revenue growth: Revenue +35% — strong demand growth

➕ Growth trajectory: YoY +32% vs +15% prior 2-yr avg — accelerating

➕ Dilution control: Shares -0.0% YoY — dilution controlled

➕ Rule of 40: growth 35% + FCF margin 26% = 61 — healthy growth + profitability

➕ Revenue +35.1% YoY

➕ Net income +58.3% YoY

➕ Operating margin +9.6 pts YoY

➕ Free cash flow +18.7% YoY

➕ Cash +26.8% YoY

➖ Debt +1.2% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item	2025-12-31	2024-12-31	2023-12-31	2022-12-31	2021-12-31
Tax Effect Of Unusual Items	$913.15M	$197.85M	$442.71M	$457.73M	N/A
Tax Rate For Calcs	$0.17	$0.18	$0.13	$0.13	N/A
Normalized EBITDA	$2.74T	$2.08T	$1.52T	$1.59T	N/A
Total Unusual Items	$5.38B	$1.12B	$3.38B	$3.47B	N/A
Total Unusual Items Excluding Goodwill	$5.38B	$1.12B	$3.38B	$3.47B	N/A
Net Income From Continuing Operation Net Minority Interest	$1.70T	$1.16T	$851.74B	$992.92B	N/A
Reconciled Depreciation	$688.10B	$662.80B	$532.19B	$437.25B	N/A
Reconciled Cost Of Revenue	$839.72B	$607.19B	$454.44B	$478.29B	N/A
EBITDA	$2.74T	$2.08T	$1.52T	$1.59T	N/A
EBIT	$2.05T	$1.42T	$991.32B	$1.16T	N/A
Net Interest Income	$93.37B	$76.72B	$48.29B	$10.67B	N/A
Interest Expense	$12.37B	$10.50B	$12.00B	$11.75B	N/A
Interest Income	$105.74B	$87.21B	$60.29B	$22.42B	N/A
Normalized Income	$1.69T	$1.16T	$848.80B	$989.91B	N/A
Net Income From Continuing And Discontinued Operation	$1.70T	$1.16T	$851.74B	$992.92B	N/A

Showing 15 of 55 rows

Balance Sheet (Annual)

Item	2025-12-31	2024-12-31	2023-12-31	2022-12-31	2021-12-31
Treasury Shares Number	N/A	N/A	$0.00	N/A	N/A
Ordinary Shares Number	$25.93B	$25.93B	$25.93B	$25.93B	N/A
Share Issued	$25.93B	$25.93B	$25.93B	$25.93B	N/A
Total Debt	$1.06T	$1.05T	$956.26B	$888.17B	N/A
Tangible Book Value	$5.33T	$4.22T	$3.41T	$2.88T	N/A
Invested Capital	$6.39T	$5.26T	$4.36T	$3.76T	N/A
Working Capital	$2.29T	$1.78T	$1.25T	$1.07T	N/A
Net Tangible Assets	$5.33T	$4.22T	$3.41T	$2.88T	N/A
Capital Lease Obligations	$31.59B	$28.76B	$28.68B	$29.76B	N/A
Common Stock Equity	$5.36T	$4.24T	$3.43T	$2.90T	N/A
Total Capitalization	$6.25T	$5.20T	$4.35T	$3.74T	N/A
Total Equity Gross Minority Interest	$5.40T	$4.28T	$3.45T	$2.92T	N/A
Minority Interest	$41.18B	$35.01B	$24.34B	$14.81B	N/A
Stockholders Equity	$5.36T	$4.24T	$3.43T	$2.90T	N/A
Other Equity Interest	$-477.00M	$-1.71B	$-293.50M	$-185.20M	N/A

Showing 15 of 94 rows

Cash Flow Statement (Annual)

Item	2025-12-31	2024-12-31	2023-12-31	2022-12-31	2021-12-31
Free Cash Flow	$992.38B	$861.20B	$286.57B	$520.97B	N/A
Repurchase Of Capital Stock	$0.00	$-3.09B	$0.00	$-871.60M	N/A
Repayment Of Debt	$-60.52B	$-38.67B	$-22.71B	$-118.95B	N/A
Issuance Of Debt	$97.89B	$65.20B	$116.06B	$200.96B	N/A
Capital Expenditure	$-1.28T	$-964.98B	$-955.40B	$-1.09T	N/A
End Cash Position	$2.77T	$2.13T	$1.47T	$1.34T	N/A
Beginning Cash Position	$2.13T	$1.47T	$1.34T	$1.06T	N/A
Effect Of Exchange Rate Changes	$-50.01B	$47.17B	$-8.34B	$58.40B	N/A
Changes In Cash	$690.24B	$615.03B	$130.95B	$219.43B	N/A
Financing Cash Flow	$-440.34B	$-346.30B	$-204.89B	$-200.24B	N/A
Cash Flow From Continuing Financing Activities	$-440.34B	$-346.30B	$-204.89B	$-200.24B	N/A
Net Other Financing Charges	$8.19B	$12.06B	$10.84B	$16.07B	N/A
Interest Paid Cff	$-19.13B	$-18.75B	$-17.36B	$-12.22B	N/A
Cash Dividends Paid	$-466.78B	$-363.06B	$-291.72B	$-285.23B	N/A
Common Stock Dividend Paid	$-466.78B	$-363.06B	$-291.72B	$-285.23B	N/A

Showing 15 of 69 rows

TSM — Taiwan Semiconductor Manufacturing Company Limited $477.57