TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD

TSM

Price: $398.73Market Cap: $2.07T

Investment snapshot

29%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

8 / 3

NEUTRAL / FAIL

Median fair value

$18.41

-95.4% vs price

Models with upside

0 / 17

Positive margin of safety

Strongest signal

All 8 investors pass TSM's efficiency

Key risk

Split decision: 8 NEUTRAL · 3 PASS · 3 FAIL · 2 BUY

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	PASS	PASS	NEUTRAL	FAIL · Rank #1247 (Top 40.3%)	NEUTRAL	NEUTRAL	NEUTRAL	FAIL	BUY	FAIL	NEUTRAL	PASS	NEUTRAL	BUY	FAIL	NEUTRAL	NEUTRAL
Score
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Intrinsic Value (annual)					N/A								N/A	N/A	N/A	N/A	N/A
Margin of Safety	-3120.8%	-1495.6%	-1088.5%	-3571.5%	N/A	-2065.8%	-1212.9%	-4088.3%	-640.9%	-3528.1%	-986.8%	-2451.1%	N/A	N/A	N/A	N/A	N/A
Financial Basis	Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 · Market data at 2026-11-01 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 · Qualitative assessment Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 · Qualitative assessment Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 · Market data at 2026-11-01 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 · Price history 2025-01-01–2026-11-01 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 · Qualitative assessment Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 · Price history 2025-01-01–2026-11-01 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-17 Score computed: 2026-11-14	Annual history · FY 2024 · Price history 2025-01-01–2026-11-01 Latest source filing: 2025-04-17 Score computed: 2026-11-14

Where It Passes

Efficiency100% pass✓ 11▾
All 8 investors pass TSM's efficiency
Current Ratio2.36
✓Graham>= 2.0
ROIC (3-5 yr avg)43.5%
✓Buffett> 10%
ROIC - WACC+33.5%
✓BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)45.7%
✓Greenblatt> 25%
Current Ratio Change YoY2.33 -> 2.36
✓PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.39x -> 0.43x
✓PiotroskiImproved YoY
Current Assets / Current Liabilities2.36
✓Dreman> 1.5
Return on Invested Capital24.4%
✓Munger> 15%
ROIC (high and growing)FY2022: ROIC=30.2%; FY2023: ROIC=21.0%; FY2024: ROIC=24.4%
✓AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC16.8% (RR=69% x ROIC=24.4%)
✓AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)5/5 years above 12% (latest 24.4%)
✓SleepROIC > 12% in a majority of years
Debt & Leverage83% pass✓ 13✗ 2▾
10 of 12 pass — Piotroski and Marks object
LT Debt vs Net Current AssetsLT Debt $971.4M vs NCA $54.3B
✓GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest CoverageD/E: 0.01, IC: 126.0x
✓BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity0.01
✓Lynch< 0.33
Cash - Long-term Debt$63.8B
✓LynchPositive preferred
LT Debt / Total Assets Change0.08% -> 0.48%
✗PiotroskiDecreased YoY
Current Assets / Current Liabilities2.36
✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity0.01
✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x
Debt Levels0.01
✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=126.0x, D/EBITDA=N/A (D&A unavailable)
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity0.01
✓Ackman<= 1.0
Negative debt-to-equity (higher means less debt)-0.0075; #568/4210 (top 13.5%)
✓AsnessTop 30% of eligible cross-section
Growth63% pass✓ 10✗ 3▾
5 of 8 pass — Lynch, Sleep and Neff object
EPS Growth (3-yr avg, 10-yr window)222.3%
✓Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)11.88
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR24.6%
✓Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: 7.5% vs Rev: 25.5%
✓LynchInventory growth < Revenue growth
EPS Growth Direction$0.37 (2015) -> $1.36 (2024)
✓DremanPositive over recent years
EPS CAGR15.8% CAGR over 9 years
✓Dreman> 5% annualized
Positive Net Income Frequency10/10 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth25.5%
✓Ackman>= 5%
Positive EPS Growth Frequency4/5 years with positive EPS growth
✓AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR24.6% CAGR over 5 years
✓Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trendgross margin 59.6% -> 56.1%, operating margin 49.5% -> 45.7%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR20.0%
✓SleepCAGR > 7%
3-5 Year Diluted EPS CAGR24.6% over 5 years
✗Neff7%-20% annualized
Verdicts56% pass✓ 5✗ 4▾
Split decision: 8 NEUTRAL · 3 PASS · 3 FAIL · 2 BUY
Overall verdict
✓GrahamPASS (4/9)✓BuffettPASS (5/9)•LynchNEUTRAL (6/7)✗GreenblattRank #1247•PiotroskiNEUTRAL (F-Score 7)•DremanNEUTRAL (7/11)•MungerNEUTRAL (3/4)✗PabraiFAIL (1/3)✓AkreBUY (5/6)✗MarksFAIL (2/5)•AckmanNEUTRAL (7/9)✓TempletonPASS (4/8)•SleepNEUTRAL (4/6)✓AsnessBUY (Rank #434/2370 (Top 18.3%))✗NeffFAIL (3/6)•SchlossNEUTRAL (5/7)•OshaughnessyNEUTRAL (Not ranked)

Where It Falls Short

Valuation0% pass✓ 1✗ 27▾
No clean pass — all 13 investors flag at least one valuation criterion
Price / 3-yr avg EPS324.9x
✗Graham<= 15x
Price-to-Book Ratio79.8x
✗Graham<= 1.5x
P/E x P/B25,931.1
✗Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)11.88
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value2.0%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=2.0%, ROC=45.7%
✗GreenblattBoth EY > 10% and ROC > 25%
Price / EPS292.4x
✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)185.5x
✗Dreman< 8x
Price / Book Value per Share79.8x
✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Valuation ReasonablenessP/E=292.4x
✗MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldP/E=292.4x, FCF Yield=1.3%
✗PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/E=292.4x, P/B=79.8x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value-2066.0% (IV=$18.41 vs Price=$398.73)
✗Marks>= 20% below intrinsic value
Price / FCF per Share389.3x
✗Ackman<= 25
Price vs. Trailing Low240% of trailing low ($166.00)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Net income / market capitalization+1.71%; #2801/6340 (top 44.2%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive book equity / market capitalization+0.0626; #4934/6449 (top 76.5%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS292.4x
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E0.08
✗Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per Share79.81x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change+141.4%
✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+0.0427; #4622/5247 (top 88.1%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+1.28%; #2357/4519 (top 52.2%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date-4.71%; #3111/6202 (top 50.2%)
✗OshaughnessyTop 10% of eligible cross-section
Valuation models0% pass✗ 11▾
TSM overvalued: all 11 models price fair value below $398.73 (median $18.41)
Graham fair value$12.38
✗Graham-3120.8% margin vs $398.73
Buffett fair value$24.99
✗Buffett-1495.6% margin vs $398.73
Lynch fair value$33.55
✗Lynch-1088.5% margin vs $398.73
Greenblatt fair value$10.86
✗Greenblatt-3571.5% margin vs $398.73
Dreman fair value$18.41
✗Dreman-2065.8% margin vs $398.73
Munger fair value$30.37
✗Munger-1212.9% margin vs $398.73
Pabrai fair value$9.52
✗Pabrai-4088.3% margin vs $398.73
Akre fair value$53.82
✗Akre-640.9% margin vs $398.73
Marks fair value$10.99
✗Marks-3528.1% margin vs $398.73
Ackman fair value$36.69
✗Ackman-986.8% margin vs $398.73
Templeton fair value$15.63
✗Templeton-2451.1% margin vs $398.73
Profitability31% pass✓ 19✗ 16▾
11 of 16 flag TSM's profitability — Graham, Buffett, Lynch +8 more
Positive EPS (10 years)10/11 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)222.3%
✓Graham>= 33% growth
Net Income Positive (10+ years)10/11 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)28.3%
✓Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)45.7% (latest)
✓BuffettStable or rising over 10 years
Free Cash Flow Proxy
✗BuffettPositive and growing
Earnings Variance (10-yr CoV)0.49
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)11.88
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR24.6%
✓Lynch15-30% (Fast Grower); > 0% to pass
ROE27.3%
✓Lynch> 15%
EBIT / Enterprise Value2.0%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=2.0%, ROC=45.7%
✗GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets17.31%
✓PiotroskiROA > 0
ROA Change YoY15.40% -> 17.31% (delta: +1.91%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=27.29%, ROA=17.31%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY54.4% -> 56.1%
✓PiotroskiImproved YoY
Pre-Tax Income / Revenue48.6%
✓Dreman>= 8%
Net Income / Shareholders' Equity27.3%
✓Dreman> 12%
Margin of SafetyP/E=292.4x, P/B=79.8x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity28.8% (3-yr avg)
✓AkreROE > 20% (3-year avg)
Discount to Intrinsic Value-2066.0% (IV=$18.41 vs Price=$398.73)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency10/10 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue45.7%
✓Ackman>= 15%
Net Income / Shareholders Equity27.3%
✓Ackman>= 15%
5-Year EPS CAGR24.6% CAGR over 5 years
✓Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend49.5% (2022) -> 45.7% (2024)
✗TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trendgross margin 59.6% -> 56.1%, operating margin 49.5% -> 45.7%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
Net income / market capitalization+1.71%; #2801/6340 (top 44.2%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Gross profit / total assets+24.27%; #1773/3702 (top 47.9%)
✗AsnessTop 30% of eligible cross-section
Net income / positive book equity+27.29%; #521/5226 (top 10.0%)
✓AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.0169; #1270/5884 (top 21.6%)
✓AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR24.6% over 5 years
✗Neff7%-20% annualized
Positive Diluted-EPS Years10/10 years positive
✓Schloss>= 70% positive over 5-10 observed years (app rule)
Cash Flow50% pass✓ 6✗ 6▾
5 of 10 pass — Buffett, Dreman, Pabrai +2 more object
Free Cash Flow Proxy
✗BuffettPositive and growing
FCF Positive and Growing$26.6B
✓LynchPositive and growing
Operating Cash Flow$55.7B
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=27.29%, ROA=17.31%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)185.5x
✗Dreman< 8x
P/E or FCF YieldP/E=292.4x, FCF Yield=1.3%
✗PabraiP/E < 15 or FCF Yield > 10%
FCF Positive10/10 years FCF positive
✓MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap0.3%
✗Ackman>= 4%
Price / FCF per Share389.3x
✗Ackman<= 25
Positive Operating Cash Flow frequency10/10 years positive
✓SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures$26.6B
✓Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization+1.28%; #2357/4519 (top 52.2%)
✗OshaughnessyTop 10% of eligible cross-section

Business & financials

Financial snapshot: annual FY 2024. Current investor scores may use newer quarterly data.

Company Profile

Industry: Electronic Equipment

SIC Sector: Electronic & Electrical Equipment

Size: Mega Cap($2.07T)

Revenue: $88.3B+25.5% YoY

Net Income: $35.4B+27.4% YoY

Financial Snapshot

Operating Margin45.7%

Return on Equity27.3%

Debt / Equity0.01

Current Ratio2.36

EPS (Diluted)$1.36+27.4% 1y

Shares Retired−0.0% / −0.0% 2y

Similar Companies

TXNTEXAS INSTRUMENTS INC

$277.4B

ADIANALOG DEVICES INC

$192.8B

Shareholder Return

Fiscal 2024

Issued 0.0% of shares last year, 0.0% issued over two.

Buybacks: —
Dividends: $11.1B

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY21

17.7% = 17.7% + −0.0%

FY22

51.1% = 51.1% + 0.0%

FY23

−14.3% = −14.3% + 0.0%

FY24

27.4% = 27.4% + −0.0%

Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

Metric	FY 2024 Sources 20-F · 2025-04-17	FY 2023 Sources 20-F · 2024-04-18	FY 2022 Sources 20-F · 2023-04-20	FY 2021 Sources 20-F · 2022-04-14	FY 2020 Sources 20-F · 2021-04-16
Market Cap	$2.1Tcurrent	$2.8Test.	$2.3Test.	$3.0Test.	$2.9Test.
Revenue	$88.3B↑25%	$70.4B↓5%	$73.8B↑29%	$57.4B↑20%	$47.7B
Operating Income	$40.4B↑34%	$30.0B↓18%	$36.5B↑56%	$23.5B↑16%	$20.2B
Net Income	$35.4B↑27%	$27.7B↓14%	$32.4B↑51%	$21.4B↑18%	$18.2B
EPS (Diluted)	$1.36↑27%	$1.07↓14%	$1.25↑51%	$0.83↑18%	$0.70
Gross Margin	56.1%↑3%	54.4%↓9%	59.6%↑15%	51.6%↓3%	53.1%
Operating Margin	45.7%↑7%	42.6%↓14%	49.5%↑21%	40.9%↓3%	42.3%
ROE	27.3%↑10%	24.8%↓27%	34.2%↑24%	27.6%↓1%	27.8%
Total Debt	$970.8M↓5%	$1.0B↓3%	$1.1B↓75%	$4.3B↑33%	$3.2B
Shareholders' Equity	$129.6B↑16%	$111.7B↑18%	$94.6B↑22%	$77.7B↑19%	$65.4B
Current Ratio	2.36↑1%	2.33↑12%	2.08↓2%	2.12↑23%	1.73
Debt / Equity	0.01↓18%	0.01↓18%	0.01↓80%	0.06↑11%	0.05
Operating Cash Flow	$55.7B↑38%	$40.5B↓23%	$52.5B↑31%	$40.2B↑37%	$29.3B
Free Cash Flow	$26.6B↑179%	$9.5B↓45%	$17.2B↑74%	$9.9B↓12%	$11.2B

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Electronic Equipment

TSM vs Peers — Financial Grading

Revenue$88.3BTop 25%

Net Income$35.4BTop 25%

ROE27.3%Median

D/E0.01Top 25%

Op. Margin45.7%Top 25%

Curr. Ratio2.36Top 25%

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
NVIDIA CORPNVDA	$3.93T	$162.85	$215.9B	$120.1B	76.3%	0.05	60.4%	3.91	3/9	6/9	3/7	1/3	F-Score 4	5/11
INTEL CORPINTC	$317.1B	$59.66	$52.9B	$267.0M	-0.2%	0.41	-4.2%	2.02	3/9	0/9	1/7	0/3	F-Score 6	3/11
TEXAS INSTRUMENTS INCTXN	$277.4B	$303.60	$17.7B	$5.0B	30.7%	0.86	34.1%	4.35	6/9	5/9	3/7	1/3	F-Score 7	7/11
ANALOG DEVICES INCADI	$192.8B	$397.97	$11.0B	$2.3B	6.7%	0.24	26.6%	2.19	2/9	3/9	4/7	1/3	F-Score 8	4/11
Motorola Solutions, Inc.MSI	$87.8B	$531.20	$11.7B	$2.2B	89.4%	3.49	25.6%	1.04	2/9	4/9	3/7	1/3	F-Score 6	5/11
L3HARRIS TECHNOLOGIES, INC. /DE/LHX	$50.7B	$272.35	—	$1.6B	8.2%	0.57	—	1.19	2/9	2/9	3/7	1/3	F-Score 7	3/11
NOKIA CORPNOK	$45.7B	$8.07	$23.4B	$764.7M	3.1%	0.16	4.4%	1.58	2/9	1/9	3/7	1/3	F-Score 5	3/11
ERICSSON LM TELEPHONE COERIC	$34.2B	$10.56	$25.7B	$3.1B	26.0%	0.30	16.3%	1.29	2/9	5/9	5/7	3/3	F-Score 7	7/11