TSMC (TSM) Fundamental Analysis: Revenue, Earnings & Valuation

6.88 / 10

Outperform

Fundamental analysis rates TSM as Outperform with a 6.9/10 score. Key factors—Asset‑MV, PB‑ROE, Revenue‑MV, Profit‑MV, Cash‑MV, and strong interest coverage—are bullish, delivering high Q scores and solid monthly returns. Net cash‑flow growth is healthy, supporting a favorable valuation.

Analysis Checks(9/10)

Revenue-MV

Value-0.78

Score3/3

Weight12.67%

1M Return10.10%

Net cash flow from operating activities / Operating revenue (%)

Value59.73

Score3/3

Weight5.75%

1M Return5.47%

Profit-MV

Value4.39

Score3/3

Weight11.65%

1M Return9.48%

PB-ROE

Value-0.86

Score3/3

Weight14.54%

1M Return11.76%

Net cash flow from operating activities (YoY growth rate %)

Value24.58

Score1/3

Weight1.89%

1M Return2.00%

Cash-UP

Value0.72

Score3/3

Weight13.16%

1M Return11.41%

Net cash flow from operating activities / Total liabilities (%)

Value0.92

Score3/3

Weight5.79%

1M Return5.78%

Interest coverage ratio (EBIT / Interest expense) (%)

Value34.93

Score2/3

Weight2.71%

1M Return2.90%

Asset-MV

Value-0.55

Score3/3

Weight13.33%

1M Return10.41%

Cash-MV

Value0.34

Score3/3

Weight18.50%

1M Return13.36%

Is TSM undervalued or overvalued?

TSM scores 6.88/10 on fundamentals and holds a Discounted valuation at present. Backed by its 35.11% ROE, 45.03% net margin, 32.51 P/E ratio, 10.23 P/B ratio, and 53.06% earnings growth, these metrics solidify its Outperform investment rating.