COMPOSITE RISK SCORE
74
LOW RISK
VAL:13/25 · FIN:24/25 · GRO:17/25 · TECH:20/25
📖 P/B RATIO
59.6x
Price to Book
🏛 MARKET CAP
$2.0T
Large Cap
📊 ROE
36.2%
Return on Equity
Overview
Technical
Financials
Analysis
Verdict
🏢 Company Analysis · Taiwan Semiconductor Manufacturing Company Limited
💼 BUSINESS MODEL
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.. Operates in Semiconductors within the Technology sector. Workforce of 76,907 employees.
🏰 MOAT & COMPETITION
Mega-cap ($2,022B) — dominant market position with significant scale advantages. ROE of 36.2% indicates strong competitive advantage and efficient capital deployment. Profit margin of 46.5% suggests pricing power / cost moat.
🚀 CATALYSTS
Revenue growing at 35% — strong top-line momentum. Earnings growth of 58% signals execution on profitability.
⚖️ ASYMMETRY CHECK
Analyst target range: $351 — $600 (mean $463, 18 analysts). Favorable asymmetry — upside potential of +54% vs downside floor of -10% (5.4x reward-to-risk).P/E of 33.4x — fair value territory; catalysts needed for re-rating.
🔭 FUTURE OUTLOOK
Analyst consensus: Strong Buy (18 analysts). Latest quarter earnings grew 58% YoY — positive trajectory.
P/E at 33x
P/B at 59.6x
Analyst target: $463.45 (+18.9%)
1Y return: +141.6%
ROE: 36.2%
Profit margin: 46.5%
Revenue growth: 35.1%
Debt/Equity: 17%
Revenue growth: 35.1%
Earnings growth: 58.4%
Beta: 1.25
Sector: Technology
RSI, MACD, MA crossovers
200 DMA & 50 EMA position
Volume trend analysis
Price momentum signals
📈 Price Movement
1D 1W 1M
6M 1Y 3Y 5Y
🕯 Candlestick Chart
1D 1W 1M
6M 1Y 3Y 5Y
🎯 Price Prediction · Analyst Target Cone
📉 Valuation Trends (at current CMP)
P/E P/B MCap/Sales EPS
2.8
2.3
1.9
1.5
1.0
2022
2023
2024
2025
2022: 2.0 2023: 2.4 2024: 1.7 2025: 1.2 1.2
0.8
0.7
0.6
0.4
0.3
2022
2023
2024
2025
2022: 0.7 2023: 0.6 2024: 0.5 2025: 0.4 0.4
1.1
0.9
0.8
0.6
0.5
2022
2023
2024
2025
2022: 0.9 2023: 0.9 2024: 0.7 2025: 0.5 0.5
376.5
316.7
256.9
197.2
137.4
2022
2023
2024
2025
2022: 196.0 2023: 161.7 2024: 223.3 2025: 327.4 327.4
💎 Valuation & Financial Metrics
P/E RATIO
33.4x
Trailing twelve months
P/B RATIO
59.6x
Price to Book value
PROFIT MARGIN
46.5%
Net profit margin
OPM
58.1%
Operating profit margin
ANALYST TARGET
$463.45
Range: $351.00 - $600.00
PEG RATIO
1.31
Price/Earnings to Growth
EV/EBITDA
2.9x
Enterprise value ratio
CURRENT RATIO
2.49
Liquidity measure
DIVIDEND YIELD
87.00%
Annual yield
GROSS MARGIN
61.9%
Gross profit margin
SECTOR BENCHMARKS — SEMICONDUCTORS
P/E (fair) 35.0x (sector mid)
P/B (fair) 8.0x (sector mid)
ROE (good) 25% (sector target)
OPM (good) 25% (sector target)
D/E comfort <20 (sector)
📋 Quarterly Performance Trend
Quarter Revenue QoQ % Net Profit QoQ % Op. Cash Flow EBITDA Margin
Q3 '24
N/A —
N/A —
N/A
N/A
Q4 '24
$868.5B —
$359.8B —
$620.2B
71.6%
Q1 '25
$839.3B -3.4%
$361.6B +0.5%
$625.6B
72.5%
Q2 '25
$933.8B +11.3%
$398.3B +10.2%
$497.1B
73.3%
Q3 '25
$989.9B +6.0%
$452.3B +13.6%
$426.8B
69.8%
Q4 '25
$1.0T +5.7%
$485.5B +7.3%
$725.5B
72.4%
Q1 '26
N/A —
N/A —
N/A
N/A
📊 Year-on-Year Trend
FY Revenue YoY % Net Profit YoY % Op. Cash Flow YoY %
2021
N/A —
N/A —
N/A —
2022
$2.3T —
$992.9B —
$1.6T —
2023
$2.2T -4.5%
$851.7B -14.2%
$1.2T -22.9%
2024
$2.9T +33.9%
$1.2T +36.0%
$1.8T +47.0%
2025
$3.8T +31.6%
$1.7T +46.5%
$2.3T +24.6%
📈 Revenue vs Earnings
Quarterly
Annual
💰 How Taiwan Semiconductor Manufacturing Company Limited Makes Its Money
Quarterly
Annual
Revenue
$1.0T
Cost of Revenue
$394.1B
Gross Profit
$652.0B
R&D
$64.9B
SG&A
$23.3B
Operating Inc.
$564.9B
Tax
$107.2B
Net Income
$485.5B
(46.4% margin)
Dec 2025 · All values in $ Millions
Revenue
$989.9B
Cost of Revenue
$401.4B
Gross Profit
$588.5B
R&D
$63.7B
SG&A
$24.0B
Operating Inc.
$500.7B
Tax
$73.6B
Net Income
$452.3B
(45.7% margin)
Sep 2025 · All values in $ Millions
Revenue
$933.8B
Cost of Revenue
$386.4B
Gross Profit
$547.4B
SG&A
$23.2B
Operating Inc.
$463.4B
Other
$8.1B
Net Income
$398.3B
(42.7% margin)
Jun 2025 · All values in $ Millions
Revenue
$3.8T
Cost of Revenue
$1.5T
Gross Profit
$2.3T
R&D
$246.4B
SG&A
$99.2B
Operating Inc.
$1.9T
Tax
$346.5B
Net Income
$1.7T
(44.6% margin)
Dec 2025 · All values in $ Millions
Revenue
$2.9T
Cost of Revenue
$1.3T
Gross Profit
$1.6T
R&D
$204.2B
SG&A
$96.9B
Operating Inc.
$1.3T
Tax
$248.3B
Net Income
$1.2T
(40.0% margin)
Dec 2024 · All values in $ Millions
Revenue
$2.2T
Cost of Revenue
$986.6B
Gross Profit
$1.2T
R&D
$182.4B
SG&A
$71.5B
Operating Inc.
$921.4B
Tax
$128.3B
Interest
$12.0B
Net Income
$851.7B
(39.4% margin)
Dec 2023 · All values in $ Millions
Revenue
$2.3T
Cost of Revenue
$915.5B
Gross Profit
$1.3T
R&D
$163.3B
SG&A
$63.4B
Operating Inc.
$1.1T
Tax
$150.8B
Interest
$11.8B
Other
$12.2B
Net Income
$992.9B
(43.9% margin)
Dec 2022 · All values in $ Millions
Dec 2025
Sep 2025
Jun 2025
🏦 Snapshot of Taiwan Semiconductor Manufacturing Company Limited's Balance Sheet
Quarterly
Annual
Total Assets
$7.9T
Cash & Equiv.: $2.8T (34.9%)
Receivables: $282.1B (3.6%)
Inventory: $288.1B (3.6%)
Other Current: $479.1B (6.0%)
PP&E: $3.7T (47.1%)
Goodwill: $5.9B (0.1%)
Other Non-Curr.: $355.0B (4.5%)
Liab. + Equity
$7.9T
Current Liab.: $1.5T (19.2%)
Long-Term Debt: $896.1B (11.3%)
Equity: $5.4T (68.0%)
As of Dec 2025 · All values in $ Millions
Total Assets
$7.4T
Cash & Equiv.: $2.5T (33.6%)
Receivables: $305.5B (4.2%)
Inventory: $288.7B (3.9%)
Other Current: $371.1B (5.0%)
PP&E: $3.5T (48.2%)
Goodwill: $5.8B (0.1%)
Other Non-Curr.: $349.9B (4.8%)
Liab. + Equity
$7.4T
Current Liab.: $1.3T (17.3%)
Long-Term Debt: $918.2B (12.5%)
Equity: $5.0T (68.5%)
As of Sep 2025 · All values in $ Millions
Total Assets
$7.0T
Cash & Equiv.: $2.4T (33.7%)
Receivables: $235.7B (3.4%)
Inventory: $304.2B (4.3%)
Other Current: $360.5B (5.1%)
PP&E: $3.4T (48.3%)
Goodwill: $5.6B (0.1%)
Other Non-Curr.: $330.5B (4.7%)
Liab. + Equity
$7.0T
Current Liab.: $1.4T (19.7%)
Long-Term Debt: $883.7B (12.6%)
Equity: $4.6T (65.9%)
As of Jun 2025 · All values in $ Millions
Total Assets
$7.1T
Cash & Equiv.: $2.4T (33.6%)
Receivables: $243.9B (3.4%)
Inventory: $293.4B (4.1%)
Other Current: $413.5B (5.8%)
PP&E: $3.4T (48.3%)
Goodwill: $6.1B (0.1%)
Other Non-Curr.: $320.1B (4.5%)
Liab. + Equity
$7.1T
Current Liab.: $1.4T (19.6%)
Long-Term Debt: $987.0B (13.8%)
Other Liab.: $144.9B (2.0%)
Equity: $4.6T (64.5%)
As of Mar 2025 · All values in $ Millions
Total Assets
$7.9T
Cash & Equiv.: $2.8T (34.9%)
Receivables: $282.1B (3.6%)
Inventory: $288.1B (3.6%)
Other Current: $479.1B (6.0%)
PP&E: $3.7T (47.1%)
Goodwill: $5.9B (0.1%)
Other Non-Curr.: $355.0B (4.5%)
Liab. + Equity
$7.9T
Current Liab.: $1.5T (19.2%)
Long-Term Debt: $896.1B (11.3%)
Equity: $5.4T (68.0%)
As of Dec 2025 · All values in $ Millions
Total Assets
$6.7T
Cash & Equiv.: $2.1T (31.8%)
Receivables: $270.7B (4.0%)
Inventory: $287.9B (4.3%)
Other Current: $402.2B (6.0%)
PP&E: $3.3T (48.9%)
Goodwill: $6.1B (0.1%)
Other Non-Curr.: $302.0B (4.5%)
Liab. + Equity
$6.7T
Current Liab.: $1.3T (19.6%)
Long-Term Debt: $958.4B (14.3%)
Other Liab.: $145.4B (2.2%)
Equity: $4.3T (63.9%)
As of Dec 2024 · All values in $ Millions
Total Assets
$5.5T
Cash & Equiv.: $1.5T (26.5%)
Receivables: $201.3B (3.6%)
Inventory: $251.0B (4.5%)
Other Current: $276.3B (5.0%)
PP&E: $3.1T (56.1%)
Goodwill: $5.8B (0.1%)
Other Non-Curr.: $210.5B (3.8%)
Liab. + Equity
$5.5T
Current Liab.: $942.8B (17.0%)
Long-Term Debt: $918.3B (16.6%)
Other Liab.: $217.2B (3.9%)
Equity: $3.5T (62.4%)
As of Dec 2023 · All values in $ Millions
Total Assets
$5.0T
Cash & Equiv.: $1.3T (27.0%)
Receivables: $231.4B (4.7%)
Inventory: $221.1B (4.5%)
Other Current: $257.5B (5.2%)
PP&E: $2.7T (55.1%)
Goodwill: $5.8B (0.1%)
Other Non-Curr.: $149.8B (3.0%)
Liab. + Equity
$5.0T
Current Liab.: $986.6B (19.9%)
Long-Term Debt: $839.1B (16.9%)
Other Liab.: $221.0B (4.5%)
Equity: $2.9T (58.8%)
As of Dec 2022 · All values in $ Millions
Dec 2025
Sep 2025
Jun 2025
Mar 2025
💸 Looking into Taiwan Semiconductor Manufacturing Company Limited's Cash Flow
Quarterly
Annual
Operating CF
$725.5B
Capital Exp.
$361.5B
Free Cash Flow
$364.0B
Dividends
$129.7B
Retained / Other
$231.2B
FY2025 · All values in $ Millions
Operating CF
$426.8B
Capital Exp.
$288.4B
Free Cash Flow
$138.4B
Dividends
$116.7B
Debt Repaid
$40.8B
FY2025 · All values in $ Millions
Operating CF
$497.1B
Free Cash Flow
$197.5B
Dividends
$116.7B
Debt Repaid
$11.9B
Retained / Other
$68.9B
FY2025 · All values in $ Millions
Operating CF
$625.6B
Capital Exp.
$333.1B
Free Cash Flow
$292.5B
Dividends
$103.7B
Retained / Other
$184.1B
FY2025 · All values in $ Millions
Operating CF
$2.3T
Capital Exp.
$1.3T
Free Cash Flow
$992.4B
Dividends
$466.8B
Debt Repaid
$60.5B
Retained / Other
$465.1B
FY2025 · All values in $ Millions
Operating CF
$1.8T
Capital Exp.
$965.0B
Free Cash Flow
$861.2B
Dividends
$363.1B
Retained / Other
$482.9B
FY2024 · All values in $ Millions
Operating CF
$1.2T
Capital Exp.
$955.4B
Free Cash Flow
$286.6B
Dividends
$291.7B
Debt Repaid
$22.7B
FY2023 · All values in $ Millions
Operating CF
$1.6T
Capital Exp.
$1.1T
Free Cash Flow
$521.0B
Dividends
$285.2B
Retained / Other
$227.9B
FY2022 · All values in $ Millions
FY2025
FY2025
FY2025
FY2025
🎯 EPS: Estimate vs Actual
Estimates
Quarterly
Annual
📅 Quarterly Results
Item Mar '26 Dec '25 Sep '25 Jun '25 Mar '25 Dec '24 Sep '24 Total Revenue — $1,046.09B $989.92B $933.79B $839.25B $868.46B — Cost of Revenue — $394.10B $401.38B $386.42B $345.86B $356.08B — Gross Profit — $651.99B $588.54B $547.37B $493.40B $512.38B — Operating Expense — $87.08B $87.86B — $86.31B $86.68B $78.58B Operating Income — $564.91B $500.68B $463.42B $407.09B $425.70B — Interest Expense — $3.04B $2.96B — $2.68B $2.52B $2.64B Pretax Income — $592.36B $525.37B $493.04B $430.90B $448.80B — Tax Provision — $107.21B $73.61B — $70.16B $89.24B $59.11B Net Income — $485.47B $452.30B $398.27B $361.56B $359.79B — EBITDA — $757.51B $691.11B $684.78B $608.71B $621.70B — EPS (Basic) $110.40 $97.50 $87.20 $76.80 $69.75 — — EPS (Diluted) $110.40 $97.50 $87.20 $76.80 $69.70 — — Shares Outstanding 5.19B 5.19B 5.19B 5.19B 5.19B — —
📊 Profit & Loss Statement
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Total Revenue $3,809.05B $2,894.31B $2,161.74B $2,263.89B — Cost of Revenue $1,527.76B $1,269.95B $986.63B $915.54B — Gross Profit $2,281.29B $1,624.35B $1,175.11B $1,348.35B — Operating Expense $345.20B $302.35B $253.68B $227.13B — Operating Income $1,936.10B $1,322.00B $921.43B $1,121.23B — Interest Expense $12.37B $10.50B $12.00B $11.75B — Pretax Income $2,041.65B $1,405.84B $979.32B $1,144.07B — Tax Provision $346.53B $248.32B $128.29B $150.78B — Net Income $1,697.60B $1,158.38B $851.74B $992.92B — EBITDA $2,742.12B $2,079.13B $1,523.51B $1,593.08B — EPS (Basic) $327.35 $223.40 $161.70 $196.00 — EPS (Diluted) $327.35 $223.35 $161.70 $196.00 — Shares Outstanding 5.19B 5.19B 5.19B 5.19B —
🏦 Balance Sheet
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Total Assets $7,932.84B $6,691.76B $5,532.20B $4,964.46B — Current Assets $3,817.13B $3,088.35B $2,194.03B $2,052.90B — Cash & Equivalents $2,767.86B $2,127.63B $1,465.43B $1,342.81B — Accounts Receivable — $270.68B $201.31B — $197.59B Inventory $288.11B $287.87B $251.00B $221.15B — Non-Current Assets $4,115.71B $3,603.41B $3,338.16B $2,911.56B — Property Plant & Equip $3,735.76B $3,275.11B $3,104.90B $2,735.75B — Goodwill $5.89B $6.07B $5.80B $5.79B — Intangible Assets $24.95B $26.28B $22.77B $26.00B — Total Liabilities $2,536.62B $2,412.49B $2,078.33B $2,046.63B — Current Liabilities $1,522.41B $1,308.66B $942.81B $986.56B — Accounts Payable $260.28B $265.44B $227.21B $268.38B — Short-Term Debt $136.93B $59.86B $9.29B $19.31B — Long-Term Debt $896.06B $958.43B $918.28B $839.10B — Total Equity $5,396.22B $4,279.27B $3,453.87B $2,917.83B — Retained Earnings $5,038.94B $3,872.97B $3,128.64B $2,594.89B — Book Value/Share 5,330.09B 4,217.98B 3,406.76B 2,877.02B —
💰 Cash Flow Statement
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Operating Cash Flow $2,274.98B $1,826.18B $1,241.97B $1,610.60B — Depreciation & Amort. $688.10B $662.80B $532.19B $437.25B — Change in Working Cap $-96.75B $13.35B $-56.85B $122.51B — Capital Expenditure $-1,282.60B $-964.98B $-955.40B $-1,089.63B — Free Cash Flow $992.38B $861.20B $286.57B $520.97B — Investing Cash Flow $-1,144.39B $-864.84B $-906.12B $-1,190.93B — Acquisitions $0 $-3.74B $0 $0 — Financing Cash Flow $-440.34B $-346.30B $-204.89B $-200.24B — Debt Issued $97.56B $65.20B $88.15B $200.96B — Debt Repaid $-60.52B $-12.17B $-22.71B $-7.00B — Dividends Paid $-466.78B $-363.06B $-291.72B $-285.23B — Share Buyback $0 $-3.09B $0 $-871.6M — Net Change in Cash $690.24B $615.03B $130.95B $219.43B —
📈 Key Financial Ratios
Ratio FY2025 FY2024 FY2023 FY2022 FY2021 Gross Margin % 59.9% 56.1% 54.4% 59.6% — Operating Margin % 50.8% 45.7% 42.6% 49.5% — Net Margin % 44.6% 40.0% 39.4% 43.9% — EBITDA Margin % 72.0% 71.8% 70.5% 70.4% — ROE % 31.5% 27.1% 24.7% 34.0% — ROA % 21.4% 17.3% 15.4% 20.0% — Debt/Equity % 19.7% 24.5% 27.7% 30.4% — Current Ratio 2.51 2.36 2.33 2.08 — FCF Margin % 26.1% 29.8% 13.3% 23.0% — Asset Turnover 0.48 0.43 0.39 0.46 —
🚀 Compounded Growth Rates
Revenue
1-Year +31.6% 3-Year CAGR +32.7%
Net Profit
1-Year +46.5% 3-Year CAGR +41.2%
EPS
1-Year +46.6% 3-Year CAGR +42.3%
🏭 Industry Peers — Semiconductors
Ticker Company Price P/E P/B MCap ROE Margin Rev Growth AAPL Apple Inc. $269.45 34.2 44.9 $3,955.8B 152.0% 27.0% 15.7% MSFT Microsoft Corporation $428.39 26.8 8.1 $3,184.1B 34.4% 39.0% 16.7% GOOGL Alphabet Inc. $349.24 32.2 10.2 $4,224.9B 35.7% 32.8% 18.0% META Meta Platforms, Inc. $669.24 28.5 7.8 $1,698.8B 30.2% 30.1% 23.8% NVDA NVIDIA Corporation $210.52 43.0 32.5 $5,116.7B 101.5% 55.6% 73.2% ORCL Oracle Corporation $166.91 30.0 14.3 $480.0B 57.6% 25.3% 21.7% CRM Salesforce, Inc. $182.34 23.4 2.9 $149.2B 12.4% 18.0% 12.1% ADBE Adobe Inc. $243.88 14.2 8.7 $98.6B 58.8% 29.5% 12.0%
Peers selected from Technology sector · Data from Yahoo Finance
🏛 Shareholding Pattern
TOP HOLDERS
Holder Type Shares % Held FMR, LLC Inst 61,131,828 1.18% Sanders Capital, LLC Inst 31,958,360 0.62% Capital World Investors Inst 27,404,289 0.53% Capital International Investors Inst 25,658,661 0.49% JPMORGAN CHASE & CO Inst 25,182,540 0.49% AMERICAN BALANCED FUND MF 18,182,509 0.35% VanEck ETF Trust-VanEck Semiconduct MF 14,493,801 0.28% Fidelity Contrafund MF 5,713,126 0.11%
🟢 CATALYSTS
🏆 Revenue Growth 35%: Above sector norm of 30% — strong top-line momentum.
💹 High ROE (36.2%): Above sector norm of 25% — efficient capital use.
🔀 Healthy Margins (46.5%): Above sector norm of 25%.
🇺 Analyst Upside (19%): Mean target of $463.45 above current price.
🇸 Earnings Growth (58%): Above sector norm — strong profit expansion.
🔴 RISKS
📜 High P/B (59.6x): Well above sector expensive threshold of 15x.
💰 Market Risk: Broader market correction or sentiment shift could impact stock.
🔓 Sector Risk: Regulatory or competitive changes in Technology space.
🕸 Factor Analysis · Radar
Momentum 9/10: 1M +23.2%, 6M +30.0%, RSI 60, MACD bullish, Above 200DMA Sentiment 8/10: Analyst upside +18.9%, Rec: strong buy Value 5/10: P/E 33.4, P/B 59.6, PEG 1.31, EV/EBITDA 2.9 Quality 10/10: ROE 36.2%, Margin 46.5%, D/E 17, CR 2.49 Low Volatility 4/10: Beta 1.25, Ann. vol 35% Momentum
9
Sentiment
8
Value
5
Quality
10
Low Vol
4
Momentum 9/10 1M +23.2%, 6M +30.0%, RSI 60, MACD bullish, Above 200DMA
Sentiment 8/10 Analyst upside +18.9%, Rec: strong buy
Value 5/10 P/E 33.4, P/B 59.6, PEG 1.31, EV/EBITDA 2.9
Quality 10/10 ROE 36.2%, Margin 46.5%, D/E 17, CR 2.49
Low Volatility 4/10 Beta 1.25, Ann. vol 35%
🎯 Decision Matrix — Game Theory
Action If Stock Rises If Stock Falls
BUY Capture 18.9% analyst upside OPM of 58% provides margin buffer HOLD Retain existing position; wait for better entry Miss further upside if momentum continues; 1M return of +23.2% shows momentum SELL Lock in +141.6% 1Y return Avoid further drawdown
REASONS TO BUY
Analyst upside of 18.9% with mean target of $463.45
ROE of 36.2% above sector norm of 25%
Revenue growing at 35.1% YoY (sector norm: 12%)
Operating margin of 58% shows pricing power (sector norm: 25%)
REASONS TO SELL / AVOID
1Y return of +141.6% — profit booking opportunity
Taiwan Semiconductor Manufacturing Company Limited trades at $389.87 with a composite risk score of 74/100.
The stock scores 13/25 on valuation, 24/25 on financial health, 17/25 on growth, and 20/25 on technicals.
The company is currently profitable with strong return on equity.
Bottom Line: Attractive risk/reward for Technology at current levels. The current recommendation is BUY .
PROFITABLE
HIGH ROE
STRONG GROWTH
UPSIDE POTENTIAL