Taiwan Semiconductor Manufacturing Company Limited (TSM) P/E Ratio History
Historical price-to-earnings valuation from 2003 to 2025
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TSM Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Taiwan Semiconductor Manufacturing Company Limited (TSM) trades at a price-to-earnings ratio of 37.1x, with a stock price of $394.41 and trailing twelve-month earnings per share of $332.16.
The current P/E is 4663% above its 5-year average of 0.8x. Over the past five years, TSM's P/E has ranged from a low of 0.4x to a high of 1.1x, placing the current valuation at the 100th percentile of its historical range.
Compared to the Technology sector median P/E of 26.7x, TSM trades at a 39% premium to its sector peers. The sector includes 358 companies with P/E ratios ranging from 0.0x to 197.6x.
The PEG ratio of 1.34 (P/E divided by 50% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, TSM commands a significant premium over the S&P 500 median P/E of 25.1x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our TSM DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
TSM P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $41B | 46.6 | - | +431%Best | |
| $35B | 26.4Lowest | 3.63 | -11% | |
| $326B | 47.4 | 2.76 | +1% | |
| $344B | 66.5 | 2.97 | +43% | |
| $228B | 57.1 | 1.81 | +50% | |
| $56B | 102.6 | - | +5% | |
| $15B | 109.7 | 3.17 | -32% | |
| $4.8T | 40.1 | 0.42Best | +67% | |
| $579B | 134.1 | 25.95 | +165% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
TSM Historical P/E Data (2003–2025)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q4 | Wed Dec 31 2025 00:00:00 GM | $303.89 | $332.15 | 0.9x | +55% |
| FY2025 Q3 | $279.29 | $303.05 | 0.9x | +56% | |
| FY2025 Q2 | Mon Jun 30 2025 00:00:00 GM | $226.49 | $278.55 | 0.8x | +38% |
| FY2025 Q1 | Mon Mar 31 2025 00:00:00 GM | $166.00 | $249.55 | 0.7x | +13% |
| FY2024 Q4 | $197.49 | $223.35 | 0.9x | +50% | |
| FY2024 Q3 | Mon Sep 30 2024 00:00:00 GM | $173.67 | $200.05 | 0.9x | +47% |
| FY2024 Q2 | Sun Jun 30 2024 00:00:00 GM | $173.81 | $178.05 | 1.0x | +66% |
| FY2024 Q1 | Sun Mar 31 2024 00:00:00 GM | $136.05 | $165.30 | 0.8x | +40% |
| FY2023 Q4 | Sun Dec 31 2023 00:00:00 GM | $104.00 | $161.70 | 0.6x | +9% |
| FY2023 Q3 | Sat Sep 30 2023 00:00:00 GM | $86.90 | $168.15 | 0.5x | -12% |
| FY2023 Q2 | Fri Jun 30 2023 00:00:00 GM | $100.92 | $181.60 | 0.6x | -6% |
| FY2023 Q1 | Fri Mar 31 2023 00:00:00 GM | $93.02 | $192.25 | 0.5x | -18% |
Average P/E for displayed period: 0.6x
Full TSM Stock Analysis
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Start ComparisonTSM — Frequently Asked Questions
Quick answers to the most common questions about buying TSM stock.
Is TSM stock overvalued or undervalued?
TSM trades at 37.1x P/E, above its 5-year average of 0.8x. The 100th percentile ranking indicates a premium to historical valuation.
How does TSM's valuation compare to peers?
Taiwan Semiconductor Manufacturing Company Limited P/E of 37.1x compares to sector median of 26.7x. The premium reflects expected growth above peers.
What is TSM's PEG ratio?
TSM PEG ratio is 1.34. Between 1-2 suggests valuation aligns with growth. Historical P/E data spans 2003-2025.