Taiwan Semiconductor Manufacturing Company Limited
TSMTechnology · Semiconductors · NYSE
$406.11
P/E 28.2×
Is Taiwan Semiconductor Manufacturing Company Limited (TSM) Undervalued? Valuation & Fair Price
At $406.11, the frameworks are split on Taiwan Semiconductor Manufacturing Company Limited today — Warren Buffett and Phil Town (Rule #1) rate it Avoid and Benjamin Graham and Peter Lynch rate it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.
Valuo fair-value verdict
Taiwan Semiconductor Manufacturing Company Limited looks 36% overvalued
TSM trades at $406.11 versus a blended fair value of $261.79 across 4 investor frameworks. That's a 36% premium over our estimate — the exact buy-below price from each framework is below.
The four investor lenses
See how each legend judges TSM
Pick a lens — the fair-value rail and its checklist update. The exact prices unlock with a free account.
Buffett: Wonderful businesses at a fair price — moat, high returns on capital, owner earnings.
Where Buffett marks fair value — the exact price is in the full analysis.
Buffett's checklist
Return on Equity
ROE Consistency
ROE Quality (Low Leverage)
Debt Levels
The full checklist, the exact fair value, and all four lenses side by side
Unlock free →The six questions · TSM
signal free · score locked
- Is it cheap enough?Weak
A great business at the wrong price is still a bad buy.
Price score — free accountP/E · PEG
- Is this a good business?Strong
Returns on capital, margins, and the cash they throw off.
Quality score — free accountROIC · margins
- Can it survive a bad year?Strong
Debt, liquidity, and balance-sheet resilience.
Safety score — free accountDebt · liquidity
- Are the numbers honest?Strong
Whether reported profit is backed by real cash.
Integrity score — free accountCash-backed profit
- Is it getting better?Strong
Revenue, earnings, and cash-flow trajectory.
Growth score — free accountRevenue · earnings
- Who runs it — and are they buying?Strong
Capital allocation, dilution, and insider conviction.
Stewardship score — free accountDilution · insiders
Strong on Quality, Safety, Integrity, Growth, Stewardship; weak on Price.
Inside · Price
Price is what you pay for the cash a business earns. Roughly under ~15× earnings is cheap; over ~30× the market is already pricing in strong growth, so you need that growth to show up.
The exact number, the reference bands, and each legend's take unlock free.
Insider & congress activity
Are insiders buying TSM?
Over recent SEC Form 4 filings, TSM insiders bought $690K and sold $0 of stock across 79 open-market trades, including a rare cluster of three or more executives buying within 30 days — historically one of the strongest insider signals. Insiders sell for many reasons, but they buy for one.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Yuan LipenVP | Buy | 1,000 | $71K | Nov 1, 2026 |
| Yuan LipenVP | Buy | 40 | $3K | Oct 7, 2026 |
| Yeap Choh FeiSVP | Buy | 52 | $4K | Oct 7, 2026 |
| Zhang Kevin XiaoqiangSVP and Deputy Co-COO | Buy | 59 | $5K | Oct 7, 2026 |
| Yoo Chue-SanVP | Buy | 50 | $4K | Oct 7, 2026 |
Members of Congress have also reported 50 trades in TSM. See the full insider & congress timeline.
Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.
See the interactive insider chart & every tradeBear · base · bull
Three ways TSM could play out
A fair-value target for each scenario, with the assumptions behind it.
Bear case
Bear case price target — free accountGrowth disappoints and the multiple compresses — the downside if things go wrong.
Base case
Base case price target — free accountThe most likely path given current fundamentals — the scenario to anchor on.
Bull case
Bull case price target — free accountExecution beats expectations and growth holds — the upside if things go right.
Company financials
5-Year Financials
Income statement highlights — annual, USD
| Metric | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Revenue | $117.3B | $88.2B | $65.9B | $69.0B | $48.4B |
| Rev. Growth | +33.0% | +33.9% | -4.5% | +42.6% | — |
| Net Income | $52.9B | $35.3B | $26.0B | $30.3B | $18.1B |
| Net Margin | 45.1% | 40.0% | 39.4% | 43.9% | 37.3% |
| EPS (Diluted) | $10.15 | $7.04 | $4.87 | $6.05 | $3.47 |
About Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited (TSMC), along with its affiliated entities, operates globally in the semiconductor industry, specializing in the manufacturing, packaging, meticulous testing, and worldwide distribution of integrated circuits and other crucial semiconductor components. Its expansive international presence covers key markets such as Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company is renowned for its diverse array of wafer fabrication processes. These capabilities enable the production of various advanced semiconductor types, including complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal devices, radio frequency components, embedded memory, and bipolar CMOS mixed-signal circuits. Beyond its core foundry services, TSMC extends its offerings to include dedicated customer and engineering support. It also undertakes the production of specialized masks, actively invests in burgeoning technology startups, and manages the entire lifecycle—from research and development through to manufacturing, packaging, testing, and sales—of color filters. Furthermore, the company provides a range of investment services. TSMC's cutting-edge products are indispensable across numerous sectors, powering high-performance computing, modern smartphones, Internet of Things (IoT) ecosystems, sophisticated automotive systems, and a broad spectrum of digital consumer electronics. Established in 1987, the enterprise is officially headquartered in Hsinchu City, Taiwan.
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Data as of Oct 7, 2026 · price updated Nov 3, 2026. Sourced from SEC filings & Financial Modeling Prep.
Educational Use Only · Not Financial Advice
Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.