Taiwan Stock Buy Hold or Sell Recommendation

TSM -  USA Stock  

USD 139.19  1.47  1.05%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Taiwan Semiconductor Manufacturing is 'Strong Buy'. Macroaxis provides Taiwan Semiconductor buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TSM positions. The advice algorithm takes into account all of Taiwan Semiconductor's available fundamental, technical, and predictive indicators you will find on this site.

Taiwan Advice 

 
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The advice is provided from Taiwan Semiconductor's buy-and-hold perspective. Additionally, take a look at Taiwan Semiconductor Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Taiwan and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Taiwan Semiconductor Manufacturing.

Execute Taiwan Semiconductor Buy or Sell Advice

The Taiwan recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Taiwan Semiconductor Manufacturing. Macroaxis does not own or have any residual interests in Taiwan Semiconductor Manufacturing or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Taiwan Semiconductor's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Taiwan SemiconductorBuy Taiwan Semiconductor
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

HoldDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Taiwan Semiconductor Manufacturing has a Risk Adjusted Performance of 0.1581, Jensen Alpha of 0.3331, Total Risk Alpha of 0.2349, Sortino Ratio of 0.1865 and Treynor Ratio of 0.3938
Macroaxis provides recommendation on Taiwan Semiconductor to complement and cross-verify current analyst consensus on Taiwan Semiconductor Manufacturing. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Taiwan Semiconductor is not overpriced, please validate all Taiwan Semiconductor fundamentals, including its cash per share, and the relationship between the price to sales and short ratio . Given that Taiwan Semiconductor has a number of shares shorted of 9.96 M, we advise you to double-check Taiwan Semiconductor Manufacturing market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Taiwan Semiconductor Trading Alerts and Improvement Suggestions

Taiwan Semiconductor current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Taiwan analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Taiwan analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price143.79
Target Median Price138.00
Target High Price207.00
Recommendation Mean2.00
Number Of Analyst Opinions9
Target Low Price120.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Taiwan Semiconductor Returns Distribution Density

The distribution of Taiwan Semiconductor's historical returns is an attempt to chart the future uncertainty of Taiwan Semiconductor's future price movements. The chart of the probability distribution of Taiwan Semiconductor stock daily returns describes the distribution of returns around its average expected value. We use Taiwan Semiconductor Manufacturing price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Taiwan Semiconductor returns is essential to provide solid investment advice for Taiwan Semiconductor stock.
Mean Return0.40Value At Risk-2.94
Potential Upside3.57Standard Deviation2.15
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Taiwan Semiconductor historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Taiwan Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Taiwan Semiconductor is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Taiwan Semiconductor Manufacturing backward and forwards among themselves. Taiwan Semiconductor's institutional investor refers to the entity that pools money to purchase Taiwan Semiconductor's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Dnb Asset Management AsCommon Shares896.5 K107.9 M
Crossmark Global Holdings IncCommon Shares373.2 K44.9 M
Exchange Traded Concepts LlcCommon Shares281.3 K33.8 M
Vigilant Capital Management LlcCommon Shares245.4 K29.5 M
Grassi Investment ManagementCommon Shares94.4 K11.4 M
Lester Murray Antman Dba SimplyrichCommon Shares35.2 K4.2 M
Beese Fulmer Investment Management IncCommon Shares30.9 K3.7 M
Note, although Taiwan Semiconductor's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Taiwan Semiconductor Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Taiwan Semiconductor or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Taiwan Semiconductor stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Taiwan stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.33
β
Beta against DOW1.00
σ
Overall volatility
2.16
Ir
Information ratio 0.15

Taiwan Semiconductor Volatility Alert

Taiwan Semiconductor Manufacturing has relatively low volatility with skewness of 0.33 and kurtosis of 0.75. However, we advise all investors to independently investigate Taiwan Semiconductor Manufacturing to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Taiwan Semiconductor's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Taiwan Semiconductor's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Taiwan Semiconductor Implied Volatility

Taiwan Semiconductor's implied volatility exposes the market's sentiment of Taiwan Semiconductor Manufacturing stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Taiwan Semiconductor's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Taiwan Semiconductor stock will not fluctuate a lot when Taiwan Semiconductor's options are near their expiration.

Taiwan Semiconductor Fundamentals Vs Peers

Comparing Taiwan Semiconductor's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Taiwan Semiconductor's direct or indirect competition across all of the common fundamentals between Taiwan Semiconductor and the related equities. This way, we can detect undervalued stocks with similar characteristics as Taiwan Semiconductor or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Taiwan Semiconductor's fundamental indicators could also be used in its relative valuation, which is a method of valuing Taiwan Semiconductor by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Taiwan Semiconductor to competition
FundamentalsTaiwan SemiconductorPeer Average
Return On Equity29.67 %(0.31) %
Return On Asset13.08 %(0.14) %
Profit Margin37.93 %(1.27) %
Operating Margin68.00 %(5.51) %
Current Valuation309.77 B16.62 B
Shares Outstanding5.19 B571.82 M
Shares Owned by Insiders0.01 %10.09 %
Shares Owned by Institutions17.23 %39.21 %
Number of Shares Shorted9.96 M4.71 M
Price to Earning35.21 X28.72 X
Price to Book0.35 X9.51 X
Price to Sales0.48 X11.42 X
Revenue1510 B9.43 B
Gross Profit711.15 B27.38 B
EBITDA1030 B3.9 B
Net Income573.07 B570.98 M
Cash and Equivalents989.53 B2.7 B
Cash per Share190.80 X5.01 X
Total Debt605.18 B5.32 B
Debt to Equity0.29 %48.70 %
Current Ratio2.09 X2.16 X
Book Value Per Share400.30 X1.93 K
Cash Flow from Operations993.09 B971.22 M
Short Ratio1.23 X4.00 X
Earnings Per Share3.99 X3.12 X
Price to Earnings To Growth2.05 X4.89 X
Number of Employees48.75 K18.84 K
Beta1.0-0.15
Market Capitalization729.47 B19.03 B
Z Score0.68.72
Five Year Return2.78 %
Last Dividend Paid1.93

About Taiwan Semiconductor Buy or Sell Advice

When is the right time to buy or sell Taiwan Semiconductor Manufacturing? Buying financial instruments such as Taiwan Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Taiwan Semiconductor investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Additionally, take a look at Taiwan Semiconductor Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Taiwan Semiconductor information on this page should be used as a complementary analysis to other Taiwan Semiconductor's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try CEO Directory module to screen CEOs from public companies around the world.

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Is Taiwan Semiconductor's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Taiwan Semiconductor. If investors know Taiwan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Taiwan Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Taiwan Semiconductor is measured differently than its book value, which is the value of Taiwan that is recorded on the company's balance sheet. Investors also form their own opinion of Taiwan Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is Taiwan Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Taiwan Semiconductor's market value can be influenced by many factors that don't directly affect Taiwan Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Taiwan Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine Taiwan Semiconductor value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taiwan Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.