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 43th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Taiwan Semiconductor Manufacturing Co Ltd ended up being:
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 better than merely 23.49% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately only 2.66% 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 54.38% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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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.
The deleveraging of US-China 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 (TSMC) said on Wednesday.The Trump administration has limited supplies to major Chinese tech firms like Huawei Technologies, viewing them as a security threat, and is encouraging US factories in mainland China to move home, part of a broader US-China trade war.China, for its part, is trying to…
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