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 53th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Taiwan Semiconductor Manufacturing Co Ltd ended up being:
The company has produced more trailing twelve month cash flow than 99.17% of its sector Technology.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than just 3.44% 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 56.39% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TSM, try CYBR, JCS, NOW, OTEX, and SCKT.
Taiwan Semiconductor Manufacturing Co. posted monthly revenue that suggested June-quarter sales surpassed analysts’ estimates, underscoring how its technological lead is helping the chip maker weather the pandemic and US curbs on its No 2 customer Huawei Technologies.Apple’s main iPhone chip maker reported sales of NT$120.88 billion (US$4.1 billion) for June on Friday. That likely means TSMC’s revenue grew about 29 per cent to NT$310.7 billion last quarter, based on previously reported figures,…