Latest Ratios: P/E Ratio 25.3x · EV/EBITDA 17.2x · ROE 35.1%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.95T | $1.58T | $1.02T | $539.3B | $386.3B | $623.9B | $565.5B | $301.3B | $191.4B | $205.6B | $149.1B |
| Enterprise Value | $1.90T | $-127266306654 | $-56415781790 | $30.2B | $-68343752066 | $312.6B | $273.1B | $36.4B | $-205841834840 | $-133795886600 | $-142980515000 |
| P/E Ratio → | 25.25 | 0.92 | 0.86 | 0.65 | 0.38 | 1.06 | 1.14 | 0.88 | 0.53 | 0.61 | 0.44 |
| P/S Ratio | 12.91 | 0.41 | 0.35 | 0.25 | 0.17 | 0.39 | 0.42 | 0.28 | 0.19 | 0.21 | 0.16 |
| P/B Ratio | 11.83 | 0.29 | 0.24 | 0.16 | 0.13 | 0.29 | 0.31 | 0.19 | 0.12 | 0.14 | 0.11 |
| P/FCF | 42.38 | 1.59 | 1.18 | 1.88 | 0.74 | 2.37 | 1.88 | 2.07 | 0.76 | 0.82 | 0.72 |
| P/OCF | 28.05 | 0.69 | 0.56 | 0.43 | 0.24 | 0.56 | 0.69 | 0.49 | 0.33 | 0.35 | 0.28 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.03 | -0.02 | 0.01 | -0.03 | 0.20 | 0.20 | 0.03 | -0.20 | -0.14 | -0.15 |
| EV / EBITDA | 17.20 | -0.05 | -0.03 | 0.02 | -0.04 | 0.29 | 0.30 | 0.06 | -0.30 | -0.21 | -0.24 |
| EV / EBIT | 32.09 | -0.06 | -0.04 | 0.03 | -0.06 | 0.47 | 0.47 | 0.09 | -0.51 | -0.33 | -0.37 |
| EV / FCF | — | -0.13 | -0.06 | 0.11 | -0.13 | 1.19 | 0.91 | 0.25 | -0.82 | -0.54 | -0.69 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.9% | 59.9% | 56.1% | 54.4% | 59.6% | 51.6% | 53.1% | 46.0% | 48.3% | 50.6% | 50.1% |
| Operating Margin | 50.8% | 50.8% | 45.7% | 42.6% | 49.5% | 40.9% | 42.3% | 34.8% | 37.2% | 39.4% | 39.9% |
| Net Profit Margin | 44.6% | 44.6% | 40.0% | 39.4% | 43.9% | 37.3% | 38.1% | 33.1% | 35.2% | 35.3% | 35.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 35.1% | 35.1% | 30.0% | 26.7% | 39.2% | 29.7% | 29.6% | 21.6% | 23.0% | 24.2% | 26.0% |
| ROA | 23.2% | 23.2% | 19.0% | 16.2% | 22.9% | 18.3% | 20.3% | 16.3% | 17.8% | 17.8% | 18.7% |
| ROIC | 42.1% | 42.1% | 32.3% | 25.6% | 39.1% | 28.8% | 29.4% | 21.4% | 23.8% | 26.0% | 29.0% |
| ROCE | 32.8% | 32.8% | 26.5% | 21.5% | 32.3% | 25.5% | 29.9% | 21.9% | 23.0% | 24.5% | 25.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.20 | 0.20 | 0.24 | 0.28 | 0.30 | 0.35 | 0.20 | 0.12 | 0.11 | 0.14 | 0.18 |
| Debt / EBITDA | 0.41 | 0.41 | 0.53 | 0.66 | 0.57 | 0.70 | 0.41 | 0.29 | 0.27 | 0.33 | 0.41 |
| Net Debt / Equity | — | -0.32 | -0.25 | -0.15 | -0.16 | -0.14 | -0.16 | -0.16 | -0.24 | -0.23 | -0.21 |
| Net Debt / EBITDA | -0.65 | -0.65 | -0.54 | -0.35 | -0.29 | -0.29 | -0.33 | -0.40 | -0.59 | -0.53 | -0.49 |
| Debt / FCF | — | -1.72 | -1.24 | -1.78 | -0.87 | -1.19 | -0.97 | -1.82 | -1.58 | -1.36 | -1.41 |
| Interest Coverage | 166.04 | 166.04 | 125.96 | 82.61 | 98.37 | 123.46 | 281.93 | 120.92 | 131.29 | 119.96 | 117.73 |
Net cash position: cash ($2.77T) exceeds total debt ($1.06T)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.51 | 2.51 | 2.36 | 2.33 | 2.08 | 2.12 | 1.73 | 1.37 | 2.67 | 2.22 | 2.35 |
| Quick Ratio | 2.32 | 2.32 | 2.14 | 2.06 | 1.86 | 1.86 | 1.51 | 1.24 | 2.38 | 2.02 | 2.21 |
| Cash Ratio | 2.05 | 2.05 | 1.90 | 1.82 | 1.61 | 1.59 | 1.27 | 0.99 | 2.00 | 1.70 | 1.83 |
| Asset Turnover | — | 0.48 | 0.43 | 0.39 | 0.46 | 0.43 | 0.49 | 0.47 | 0.49 | 0.49 | 0.50 |
| Inventory Turnover | 5.30 | 5.30 | 4.41 | 3.93 | 4.14 | 3.98 | 4.57 | 6.96 | 5.17 | 6.53 | 9.72 |
| Days Sales Outstanding | — | 27.03 | 34.31 | 34.11 | 37.31 | 45.61 | 39.81 | 47.70 | 45.75 | 45.74 | 49.85 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 29.6% | 35.4% | 54.1% | 73.8% | 42.6% | 45.9% | 86.1% | 100.0% | 88.3% | 100.0% |
| Payout Ratio | 27.5% | 27.5% | 31.3% | 34.3% | 28.7% | 44.9% | 50.8% | 73.3% | 57.1% | 52.6% | 46.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.0% | 109.0% | 116.9% | 153.5% | 266.6% | 94.7% | 87.4% | 113.1% | 187.2% | 165.2% | 224.9% |
| FCF Yield | 2.4% | 63.0% | 85.0% | 53.1% | 134.9% | 42.1% | 53.3% | 48.3% | 131.3% | 121.3% | 138.7% |
| Buyback Yield | 0.0% | 0.0% | 0.3% | 0.0% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.7% | 29.6% | 35.8% | 54.1% | 74.1% | 42.6% | 45.9% | 86.1% | 100.0% | 88.3% | 100.0% |
| Shares Outstanding | — | $5.2B | $5.2B | $5.2B | $5.2B | $5.2B | $5.2B | $5.2B | $5.2B | $5.2B | $5.2B |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying TSM stock.
Taiwan Semiconductor Manufacturing Company Limited's current P/E ratio is 25.3x. The historical average is 0.8x. This places it at the 100th percentile of its historical range.
Taiwan Semiconductor Manufacturing Company Limited's current EV/EBITDA is 17.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 0.5x.
Taiwan Semiconductor Manufacturing Company Limited's return on equity (ROE) is 35.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.0%.
Based on historical data, Taiwan Semiconductor Manufacturing Company Limited is trading at a P/E of 25.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Taiwan Semiconductor Manufacturing Company Limited's current dividend yield is 0.73% with a payout ratio of 27.5%.
Taiwan Semiconductor Manufacturing Company Limited has 59.9% gross margin and 50.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Taiwan Semiconductor Manufacturing Company Limited's Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Taiwan Strait geopolitical concentration
Multiples Price in Sustained AI Demand
Based on TSM's reported figures, the trailing P/E of 36.93 and EV/EBITDA of 23.42 sit well above the peer group, where UMC trades at roughly 27 times earnings and 10.5 times EBITDA, implying the market is paying a growth premium.
The 36.93 trailing P/E compares with 27.17 for UMC and 24.29 for GlobalFoundries, a premium that appears justified only if the 33.0% year-over-year revenue growth can persist. The forward multiples reported in the data (0.69 P/E and 0.44 EV/EBITDA) are anomalous and likely reflect a data artifact rather than a true forward earnings expectation, so they should not be relied upon without verification. Investors should monitor whether the 1.30 PEG ratio holds as growth normalizes, since a decelerating top line would compress the justification for the premium.
Margin Expansion Anchors Earnings Power
As reported in the quarterly statements, gross margin rose from 53.2% in 2024Q2 to 66.4% in 2026Q3 while net margin reached 51.1%, suggesting that earnings quality has improved alongside pricing power.
Operating margin expanded from 42.5% to 58.6% over the ten-quarter window, and net margin tracks operating margin closely, indicating limited reliance on non-operating items. The margin trajectory appears driven by advanced-node mix and utilization rather than one-time gains. Because depreciation is a large fixed cost, the sustainability of these margins depends on continued high utilization, which warrants monitoring if AI demand softens.
Returns Recovering From a Low Base
According to the reported figures, ROIC climbed from 7.1% in 2024Q2 to 15.1% in 2026Q3 and ROE from 6.6% to 11.3%, suggesting returns are compounding as margins widen on a rapidly growing capital base.
The ROE of 35.9% cited in the company context diverges sharply from the quarterly ROE of 11.3%, a gap that likely reflects differing annualization or calculation bases and should be reconciled before drawing conclusions. The ROIC trend is the more robust signal, showing steady improvement even as net PPE grew substantially. Whether returns continue to rise depends on whether incremental capacity earns returns above the rising cost of overseas fab construction.
Conservative Leverage Supports Capex Cycle
Based on TSM's reported figures, debt-to-equity fell from 0.27 to 0.14 and interest coverage stood at roughly 250 times in 2026Q1, indicating that debt service is not a constraint on the current investment program.
Total debt of about $981B against roughly $7.0T of equity implies minimal financial risk, and the decline in D/E over ten quarters suggests internally funded growth. Interest coverage figures are highly volatile across quarters, with several periods unreported, so the precise coverage level should be treated with caution. The primary leverage consideration is not solvency but whether the capex cycle is financed entirely from operating cash flow if demand weakens.
Misapplied Multiple Obscures Cash Reality
As reported in the quarterly cash flow data, the P/E ratio is most commonly misapplied to TSM, since depreciation of $160B to $220B per quarter materially shapes reported earnings and cash conversion.
Applying P/E as a primary valuation anchor can mislead when capital intensity is high, because earnings are net of heavy depreciation while free cash flow swung between $139B and $510B per quarter. A better framing pairs P/FCF of 58.12 with EV/EBITDA and a normalized capex-adjusted cash yield. Investors should monitor whether the gap between operating cash flow and capex narrows as the buildout matures.