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 44th percentile in terms of potential gain offered. As for the metrics that stood out in our discounted cash flow analysis of Taiwan Semiconductor Manufacturing Co Ltd, consider:
The compound growth rate in the free cash flow of Taiwan Semiconductor Manufacturing Co Ltd over the past 5.01 years is 0.05%; that's higher than only 23.64% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than just 2.56% of the free cash flow producing stocks we're observing.
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 58.43% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EVOL, FLIR, ISDR, NOW, and VMW can be thought of as valuation peers to TSM, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Investment Thesis For investors in semiconductor companies, there is a series of events unfolding that they may pay attention to. Intel (INTC) and Nvidia (NVDA), two of the largest companies of high-performance silicon, are on firm collision course. This means competition, which means changes in the landscape could and likely...
Arne Verheyde on Seeking Alpha | September 29, 2020
Taiwan President Tsai Ing-wen promised on Thursday to help the island's key semiconductor industry overcome difficulties and consolidate its leading position, offering support to a sector increasingly caught up in China-U.S. trade tensions. Companies such as the world's biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd, are major suppliers to the likes of Apple Inc and Qualcomm Inc, as well as Chinese firms like Huawei Technologies Co Ltd. In July, TSMC said it had stopped taking new orders from Huawei in May and did not plan to ship wafers after Sept. 15, responding to U.S. curbs on supplying the Chinese company, which the Trump administration views as a security threat.
The deleveraging of China-U.S. supply chains and protectionism on both sides of the Pacific will only drive up costs and limit the flow of ideas, the chairman of Taiwan Semiconductor Manufacturing Co Ltd said on Wednesday.