TSMC
TSMC (TSM) demonstrates strong financial performance with consistent revenue and profit growth. Despite high valuation metrics, the company maintains robust profitability, indicating efficient operations. However, the current price is significantly above the calculated fair value, suggesting a need for careful business analysis regarding market expectations.
Business Performance (CAGR)
Valuation Snapshot
Financial Health
Profitability Metrics
Cash Flow Intelligence
Intrinsic Value
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AI Business Verdict
TSMC exhibits robust growth and superior profitability, underpinned by strong operational efficiency. However, its current market valuation is exceptionally high and considerably exceeds the calculated intrinsic value, warranting careful consideration for long-term value creation. The lower scores in business quality, financial strength, and capital allocation, along with missing financial data, suggest areas for deeper scrutiny. The company's future performance hinges on sustaining its growth trajectory and justifying its premium valuation through continued innovation and market leadership.
- Strong revenue and profit growth as evidenced by CAGRs of over 15% and 17%, respectively.
- High profitability with a Net Margin of close to 40% and Operating Margin of nearly 49%.
- Excellent interest coverage ratio of 134.94x, indicating financial stability.
- Consistent and strong Return on Equity (ROE) averaging above 20% over the past years.
Balance Sheet
TSMC maintains a balanced sheet with adequate liquidity and manageable leverage.
Capacity to fund growth, withstand downturns and return capital.
- TSMC maintains a balanced sheet with adequate liquidity and manageable leverage.
- Net cash position — debt fully covered by cash & investments
- Strong shareholder equity growth
- High interest coverage
- Working capital cycle trends
- Future capital allocation discipline
- Macro environment sensitivity