12.5% Below Target

Taiwan Semiconductor Manufacturing Company Limited (TSM) has a consensus 12-month price target of $520, implying 12.5% upside from $462.12. The 25 analysts covering TSM see moderate appreciation potential.

TSM has a consensus rating of "Buy" based on 25 Wall Street analysts. The rating breakdown is predominantly bullish, with 18 Buy/Strong Buy ratings. The consensus 12-month price target of $520 implies 12.5% upside from current levels.

With a forward P/E of 0.9193x, TSM trades at a relatively low valuation. The consensus target of $520 implies 12.5% appreciation, suggesting meaningful undervaluation.

The most bullish Wall Street analyst has a price target of $700 for TSM, while the most conservative target is $450. The consensus of $520 represents the median expectation. Our quantitative valuation model projects a bull case target of $27118 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

TSM is heavily covered by Wall Street, with 25 analysts providing price targets and ratings. Of these, 0 have Strong Buy ratings, 18 have Buy ratings, 7 recommend Hold, and 0 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month TSM stock forecast based on 25 Wall Street analysts shows a consensus price target of $520, with estimates ranging from $450 (bear case) to $700 (bull case). The median consensus rating is "Buy". Our proprietary valuation model produces a base case fair value of $20581, with bear/bull scenarios of $12966/$27118.

Our quantitative valuation model calculates TSM's fair value at $20581 (base case), with a bear case of $12966 and bull case of $27118. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 53/100.

TSM trades at a forward P/E ratio of 0.9x based on next-twelve-months earnings estimates compared to a trailing P/E of 43.6x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

Wall Street analysts are optimistic on TSM, with a "Buy" consensus rating and $520 price target (12.5% upside). 18 of 25 analysts rate it Buy or Strong Buy. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

TSM analyst price targets range from $450 to $700, a 48% moderate spread showing some variance in outlooks. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $520 consensus represents the middle ground. Our model's $12966-$27118 range provides an independent fundamental perspective.