Taiwan Stock Valuation

TSM -  USA Stock  

USD 123.39  4.11  3.45%

What is the enterprise value of Taiwan Semiconductor? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Taiwan Semiconductor, is its stock price multiplied by the total number of shares outstanding, calculating Taiwan Semiconductor's enterprise value requires a different approach. It uses Taiwan Semiconductor's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Taiwan Semiconductor has a current Real Value of $74.59 per share. The regular price of the company is $123.39. At this time, the company appears to be overvalued. Our model measures the value of Taiwan Semiconductor from inspecting the company fundamentals such as Shares Outstanding of 5.19 B, operating margin of 41.56 %, and Return On Equity of 29.84 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.

Taiwan Valuation 

 
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Taiwan Semiconductor Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Taiwan Semiconductor's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today
123.39
30th of November 2021
Share
Please note that Taiwan Semiconductor's price fluctuation is very steady at this time. Calculation of the real value of Taiwan Semiconductor is based on 6 months time horizon. Increasing Taiwan Semiconductor's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Taiwan Semiconductor Manufacturing is useful when determining the fair value of the Taiwan stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Taiwan Semiconductor. Since Taiwan Semiconductor is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Taiwan Stock. However, Taiwan Semiconductor's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
74.59
Real Value
131.21
Upside
Estimating the potential upside or downside of Taiwan Semiconductor Manufacturing helps investors to forecast how Taiwan stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Taiwan Semiconductor more accurately as focusing exclusively on Taiwan Semiconductor's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
2.022.022.02
Details
Hype
Prediction
LowEstimated ValueHigh
117.75119.26120.77
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.410.420.42
Details
3 Analysts
Consensus
LowTarget PriceHigh
28.0031.0934.19
Details

Taiwan Semiconductor Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Taiwan Semiconductor's current stock value. Our valuation model uses many indicators to compare Taiwan Semiconductor value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Taiwan Semiconductor competition to find correlations between indicators driving Taiwan Semiconductor's intrinsic value. More Info.
Taiwan Semiconductor Manufacturing is rated fifth in last dividend paid category among related companies. It is rated below average in beta category among related companies totaling about  0.56  of Beta per Last Dividend Paid. The ratio of Last Dividend Paid to Beta for Taiwan Semiconductor Manufacturing is roughly  1.78 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Taiwan Semiconductor by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Taiwan Semiconductor's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Taiwan Semiconductor's earnings, one of the primary drivers of an investment's value.

About Taiwan Semiconductor Valuation

The equity valuation mechanism determines the current worth of Taiwan Semiconductor Manufacturing on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Taiwan Semiconductor Manufacturing. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Taiwan Semiconductor based exclusively on its fundamental and basic technical indicators. By analyzing Taiwan Semiconductor's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Taiwan Semiconductor's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Taiwan Semiconductor. We calculate exposure to Taiwan Semiconductor's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Taiwan Semiconductor's related companies.
Taiwan Semiconductor Manufacturing Company Limited manufactures and sells integrated circuits and semiconductors. Taiwan Semiconductor Manufacturing Company Limited was founded in 1987 and is headquartered in HsinChu, Taiwan. Taiwan Semiconductor operates under Semiconductors classification in the United States and is traded on New York Stock Exchange.
Taiwan Semiconductor's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Taiwan Semiconductor's value is low or high relative to the company's performance and growth projections. Determining the market value of Taiwan Semiconductor can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Taiwan Semiconductor represents a small ownership stake in the entity. As a stockholder of Taiwan, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Taiwan Semiconductor Dividends Analysis For Valuation

Please note that Taiwan Semiconductor has scaled down on payment of dividends at this time.
There are various types of dividends Taiwan Semiconductor can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Taiwan shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Taiwan Semiconductor Manufacturing directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Taiwan pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Taiwan Semiconductor by the value of the dividends paid out.

Taiwan Semiconductor Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Taiwan Semiconductor does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.62
Earnings Quarterly Growth11.20%
Revenue Growth19.80%
Payout Ratio48.62%
Enterprise Value To Ebitda0.15
Earnings Growth11.20%
Enterprise Value To Revenue0.10
Additionally, take a look at World Market Map. 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Complementary Tools for Taiwan Stock analysis

When running Taiwan Semiconductor price analysis, check to measure Taiwan Semiconductor's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Taiwan Semiconductor is operating at the current time. Most of Taiwan Semiconductor's value examination focuses on studying past and present price action to predict the probability of Taiwan Semiconductor's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Taiwan Semiconductor's price. Additionally, you may evaluate how the addition of Taiwan Semiconductor to your portfolios can decrease your overall portfolio volatility.
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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.