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TS

Taiwan Semiconductor Manufacturing Company Limited

TSM

Technology · 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.

The Value RailOvervalued· -17% downside
0 of 1 fair values are above today's price of $406.
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Buffett

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 account

    P/E · PEG

  • Is this a good business?Strong

    Returns on capital, margins, and the cash they throw off.

    Quality score — free account

    ROIC · margins

  • Can it survive a bad year?Strong

    Debt, liquidity, and balance-sheet resilience.

    Safety score — free account

    Debt · liquidity

  • Are the numbers honest?Strong

    Whether reported profit is backed by real cash.

    Integrity score — free account

    Cash-backed profit

  • Is it getting better?Strong

    Revenue, earnings, and cash-flow trajectory.

    Growth score — free account

    Revenue · earnings

  • Who runs it — and are they buying?Strong

    Capital allocation, dilution, and insider conviction.

    Stewardship score — free account

    Dilution · 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.

See the numbers — free account

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.

Bought $690K Cluster buySold $0
Recent open-market insider trades for TSM
InsiderActionSharesValueDate
Yuan LipenVPBuy1,000$71KNov 1, 2026
Yuan LipenVPBuy40$3KOct 7, 2026
Yeap Choh FeiSVPBuy52$4KOct 7, 2026
Zhang Kevin XiaoqiangSVP and Deputy Co-COOBuy59$5KOct 7, 2026
Yoo Chue-SanVPBuy50$4KOct 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 trade

Bear · 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 account

Growth disappoints and the multiple compresses — the downside if things go wrong.

Base case

Base case price target — free account

The most likely path given current fundamentals — the scenario to anchor on.

Bull case

Bull case price target — free account

Execution beats expectations and growth holds — the upside if things go right.

See all three price targets — free account

Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20252024202320222021
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 Margin45.1%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

CEO

C. C. Wei

Sector

Technology

Industry

Semiconductors

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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  • Today's price vs. four fair-value marks
  • Insider & congress activity
  • 5-year financials

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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.