Taiwan Semiconductor Manufacturing Company Limited (TSM) Financial Ratios
29 years of historical data (1997–2025) · Technology · Semiconductors
EV/EBITDA
↓
23.64
↑+15042% vs avg
5yr avg: 0.16
30Y Low0.0·High1.8
P/FCF
↓
58.71
↑+3757% vs avg
5yr avg: 1.52
30Y Low0.3·High16.4
P/B Ratio
↓
11.83
↑+5243% vs avg
5yr avg: 0.22
30Y Low0.1·High0.4
ROE
↑
35.7%
↓+11% vs avg
5yr avg: 32.3%
30Y Low5%·High39%
Debt/EBITDA
↓
0.37
↓-34% vs avg
5yr avg: 0.57
30Y Low0.0·High1.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TSM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Taiwan Semiconductor Manufacturing Company Limited trades at 37.1x earnings, 4699% above its 5-year average of 0.8x, sitting at the 100th percentile of its historical range. Compared to the Technology sector median P/E of 26.7x, the stock trades at a premium of 39%. On a free-cash-flow basis, the stock trades at 58.7x P/FCF, 3757% above the 5-year average of 1.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.05T | $1.58T | $1.02T | $539.3B | $386.3B | $623.9B | $565.5B | $301.3B | $191.4B | $205.6B | $149.1B |
| Enterprise Value | $1.99T | $-193668999000 | $-56498293112 | $30.2B | $-68343752066 | $312.6B | $273.1B | $36.4B | $-205841834840 | $-133795886600 | $-142980515000 |
| P/E Ratio → | 37.12 | 0.91 | 0.88 | 0.63 | 0.39 | 1.05 | 1.11 | 0.85 | 0.53 | 0.60 | 0.45 |
| P/S Ratio | 16.74 | 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 | 58.71 | 1.44 | 1.18 | 1.88 | 0.74 | 2.37 | 1.88 | 2.07 | 0.76 | 0.82 | 0.72 |
| P/OCF | 27.04 | 0.66 | 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
TSM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Taiwan Semiconductor Manufacturing Company Limited's enterprise value stands at 23.6x EBITDA, 15042% above its 5-year average of 0.2x. The Technology sector median is 17.5x, placing the stock at a 35% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.05 | -0.02 | 0.01 | -0.03 | 0.20 | 0.20 | 0.03 | -0.20 | -0.14 | -0.15 |
| EV / EBITDA | 23.64 | -0.07 | -0.03 | 0.02 | -0.04 | 0.29 | 0.30 | 0.06 | -0.30 | -0.21 | -0.24 |
| EV / EBIT | 32.04 | -0.09 | -0.04 | 0.03 | -0.06 | 0.47 | 0.47 | 0.09 | -0.51 | -0.33 | -0.37 |
| EV / FCF | — | -0.18 | -0.06 | 0.11 | -0.13 | 1.19 | 0.91 | 0.25 | -0.82 | -0.54 | -0.69 |
TSM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Taiwan Semiconductor Manufacturing Company Limited earns an operating margin of 50.8%. Operating margins have expanded from 42.6% to 50.8% over the past 3 years, signaling improving operational efficiency. Return on equity of 35.7% is exceptionally high. ROIC of 42.7% represents excellent returns on invested capital.
Margins
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 | 45.1% | 45.1% | 40.0% | 39.4% | 43.9% | 37.3% | 38.1% | 33.1% | 35.2% | 35.3% | 35.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 35.7% | 35.7% | 30.0% | 26.7% | 39.2% | 29.7% | 29.6% | 21.6% | 23.0% | 24.2% | 26.0% |
| ROA | 23.8% | 23.8% | 19.0% | 16.2% | 22.9% | 18.3% | 20.3% | 16.3% | 17.8% | 17.8% | 18.7% |
| ROIC | 42.7% | 42.7% | 32.3% | 25.6% | 39.1% | 28.8% | 29.4% | 21.4% | 23.8% | 26.0% | 29.0% |
| ROCE | 33.0% | 33.0% | 26.5% | 21.5% | 32.3% | 25.5% | 29.9% | 21.9% | 23.0% | 24.5% | 25.6% |
TSM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Taiwan Semiconductor Manufacturing Company Limited carries a Debt/EBITDA ratio of 0.4x, which is very conservative (87% below the sector average of 2.9x). The company holds a net cash position — cash of $2.8T exceeds total debt of $990.4B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.18 | 0.18 | 0.24 | 0.28 | 0.30 | 0.35 | 0.20 | 0.12 | 0.11 | 0.14 | 0.18 |
| Debt / EBITDA | 0.37 | 0.37 | 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 | -0.67 | -0.67 | -0.54 | -0.35 | -0.29 | -0.29 | -0.33 | -0.40 | -0.59 | -0.53 | -0.49 |
| Debt / FCF | — | -1.61 | -1.24 | -1.78 | -0.87 | -1.19 | -0.97 | -1.82 | -1.58 | -1.36 | -1.41 |
| Interest Coverage | — | — | 125.96 | 76.79 | 95.43 | 120.05 | 272.30 | 114.65 | 125.73 | 115.77 | 114.32 |
Net cash position: cash ($2.76T) exceeds total debt ($990.4B)
TSM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Taiwan Semiconductor Manufacturing Company Limited's current ratio of 2.62x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 2.33x to 2.62x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.62 | 2.62 | 2.36 | 2.33 | 2.08 | 2.12 | 1.73 | 1.37 | 2.67 | 2.22 | 2.35 |
| Quick Ratio | 2.42 | 2.42 | 2.14 | 2.06 | 1.86 | 1.86 | 1.51 | 1.24 | 2.38 | 2.02 | 2.21 |
| Cash Ratio | 2.10 | 2.10 | 1.90 | 1.82 | 1.61 | 1.59 | 1.27 | 0.99 | 2.00 | 1.70 | 1.83 |
| Asset Turnover | — | 0.49 | 0.43 | 0.39 | 0.46 | 0.43 | 0.49 | 0.47 | 0.49 | 0.49 | 0.50 |
| Inventory Turnover | 5.37 | 5.37 | 4.41 | 3.93 | 4.14 | 3.98 | 4.57 | 6.96 | 5.17 | 6.53 | 9.72 |
| Days Sales Outstanding | — | 26.65 | 34.31 | 34.11 | 37.31 | 45.61 | 39.81 | 47.70 | 45.75 | 45.74 | 49.85 |
TSM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Taiwan Semiconductor Manufacturing Company Limited returns 0.7% to shareholders annually primarily through dividends. The payout ratio of 27.2% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 2.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% | 29.9% | 35.5% | 54.1% | 73.8% | 42.6% | 45.9% | 86.1% | 100.0% | 88.3% | 100.0% |
| Payout Ratio | 27.2% | 27.2% | 31.3% | 34.3% | 28.7% | 44.9% | 50.8% | 73.3% | 57.1% | 52.6% | 46.9% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 110.1% | 113.1% | 157.9% | 257.0% | 94.9% | 90.3% | 117.5% | 189.7% | 167.7% | 222.4% |
| FCF Yield | 1.7% | 69.6% | 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% | 29.9% | 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 |
Peer Comparison
Compare TSM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TSMYou | $2.0T | 37.1 | 23.6 | 58.7 | 59.9% | 50.8% | 35.7% | 42.7% | 0.4 |
 INTC | $543B | -1836.7 | 49.3 | — | 34.8% | -0.0% | -0.2% | -0.0% | 4.0 |
 GFS | $41B | 46.6 | 19.4 | 40.8 | 25.2% | 11.7% | 7.8% | 5.3% | 0.8 |
 UMC | $35B | 26.4 | 10.1 | 21.0 | 29.0% | 18.5% | 11.2% | 10.0% | 0.6 |
 AMAT | $326B | 47.4 | 38.7 | 57.2 | 48.7% | 29.2% | 35.5% | 33.3% | 0.8 |
 LRCX | $344B | 66.5 | 54.5 | 63.6 | 48.7% | 32.0% | 58.2% | 55.7% | 0.8 |
 KLAC | $228B | 57.1 | 41.1 | 60.9 | 62.3% | 43.1% | 100.8% | 46.5% | 1.1 |
 TER | $56B | 102.6 | 68.2 | 124.1 | 58.6% | 21.7% | 19.7% | 19.8% | 0.4 |
 ONTO | $15B | 109.7 | 76.8 | 50.6 | 49.7% | 13.2% | 6.8% | 5.7% | 0.1 |
 NVDA | $4.8T | 40.1 | 35.9 | 49.4 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
 AMD | $579B | 134.1 | 86.3 | 86.0 | 49.5% | 10.7% | 7.2% | 4.7% | 0.7 |
| Technology Median | — | 26.7 | 17.5 | 19.5 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 29 years · Updated daily
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Start ComparisonTSM — Frequently Asked Questions
Quick answers to the most common questions about buying TSM stock.
What is Taiwan Semiconductor Manufacturing Company Limited's P/E ratio?
Taiwan Semiconductor Manufacturing Company Limited's current P/E ratio is 37.1x. The historical average is 0.8x. This places it at the 100th percentile of its historical range.
What is Taiwan Semiconductor Manufacturing Company Limited's EV/EBITDA?
Taiwan Semiconductor Manufacturing Company Limited's current EV/EBITDA is 23.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 0.5x.
What is Taiwan Semiconductor Manufacturing Company Limited's ROE?
Taiwan Semiconductor Manufacturing Company Limited's return on equity (ROE) is 35.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.0%.
Is TSM stock overvalued?
Based on historical data, Taiwan Semiconductor Manufacturing Company Limited is trading at a P/E of 37.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Taiwan Semiconductor Manufacturing Company Limited's dividend yield?
Taiwan Semiconductor Manufacturing Company Limited's current dividend yield is 0.73% with a payout ratio of 27.2%.
What are Taiwan Semiconductor Manufacturing Company Limited's profit margins?
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.
How much debt does Taiwan Semiconductor Manufacturing Company Limited have?
Taiwan Semiconductor Manufacturing Company Limited's Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.