Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Company Bio
Taiwan Semiconductor engages in the computer-aided design, manufacture, packaging, testing, sale, and marketing of integrated circuits and other semiconductor devices. The company was founded in 1987 and is based in Hsinchu, Taiwan.
TSM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Taiwan Semiconductor Manufacturing Co Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Taiwan Semiconductor Manufacturing Co Ltd ranked in the 75th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 326.83% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Taiwan Semiconductor Manufacturing Co Ltd, consider:
The company has produced more trailing twelve month cash flow than 99.14% of its sector Technology.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately only 3.77% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TSM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 62.59% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Taiwan Semiconductor Manufacturing Co Ltd? See LOGM, SQ, IR, SCSC, and GSB.