Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with about 70% market share in 2025. TSMC was founded in 1987 as a joint venture of Philips, the government of...
Taiwan Semiconductor Manufacturing Company Ltd. trades near its historical valuation range, with most metrics close to their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Valuation & P/E History
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is a US-listed stock operating in the Technology sector, specifically the Semiconductors industry currently trading at $412.24 with a market capitalization of $2.14 trillion. This page provides historical valuation analysis for TSM based on 1279 data points covering 2021-09-14 to 2026-10-16...
TSM Valuation Metrics & Historical Range
The valuation table above shows Taiwan Semiconductor Manufacturing Company Ltd.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether TSM is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests TSM is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Taiwan Semiconductor Manufacturing Company Ltd..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is TSM Overvalued or Undervalued?
Taiwan Semiconductor Manufacturing Company Ltd. trades near its historical valuation range, with most metrics close to their median levels. The overall valuation percentile of 50 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive TSM is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full TSM analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.TSM trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.