Latest Ratios: P/E Ratio 41.8x · EV/EBITDA 26.6x · ROE 35.9%. (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 | $2.24T | $1.58T | $1.02T | $539.3B | $386.3B | $623.9B | $565.5B | $301.3B | $191.4B | $205.6B | $149.1B |
| Enterprise Value | $2.19T | $-127266306654 | $-56415781790 | $30.2B | $-68343752066 | $312.6B | $273.1B | $36.4B | $-205841834840 | $-133795886600 | $-142980515000 |
| P/E Ratio → | 41.75 | 0.91 | 0.86 | 0.65 | 0.38 | 1.06 | 1.14 | 0.88 | 0.53 | 0.61 | 0.44 |
| P/S Ratio | 18.74 | 0.41 | 0.35 | 0.25 | 0.17 | 0.39 | 0.42 | 0.28 | 0.19 | 0.21 | 0.16 |
| P/B Ratio | 13.36 | 0.29 | 0.24 | 0.16 | 0.13 | 0.29 | 0.31 | 0.19 | 0.12 | 0.14 | 0.11 |
| P/FCF | 65.71 | 1.44 | 1.18 | 1.88 | 0.74 | 2.37 | 1.88 | 2.07 | 0.76 | 0.82 | 0.72 |
| P/OCF | 30.26 | 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
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 | 26.56 | -0.05 | -0.03 | 0.02 | -0.04 | 0.29 | 0.30 | 0.06 | -0.30 | -0.21 | -0.24 |
| EV / EBIT | 36.00 | -0.06 | -0.04 | 0.03 | -0.06 | 0.47 | 0.47 | 0.09 | -0.51 | -0.33 | -0.37 |
| EV / FCF | — | -0.12 | -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 | 45.1% | 45.1% | 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 | 35.9% | 35.9% | 30.0% | 26.7% | 39.2% | 29.7% | 29.6% | 21.6% | 23.0% | 24.2% | 26.0% |
| ROA | 23.7% | 23.7% | 19.0% | 16.2% | 22.9% | 18.3% | 20.3% | 16.3% | 17.8% | 17.8% | 18.7% |
| ROIC | 42.6% | 42.6% | 32.3% | 25.6% | 39.1% | 28.8% | 29.4% | 21.4% | 23.8% | 26.0% | 29.0% |
| ROCE | 33.2% | 33.2% | 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 | 0.40 | 0.40 | 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 | -0.64 | -0.64 | -0.54 | -0.35 | -0.29 | -0.29 | -0.33 | -0.40 | -0.59 | -0.53 | -0.49 |
| Debt / FCF | — | -1.55 | -1.24 | -1.78 | -0.87 | -1.19 | -0.97 | -1.82 | -1.58 | -1.36 | -1.41 |
| Interest Coverage | — | — | 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 | — | 0.49 | 0.43 | 0.39 | 0.46 | 0.43 | 0.49 | 0.47 | 0.49 | 0.49 | 0.50 |
| Inventory Turnover | 5.36 | 5.36 | 4.41 | 3.93 | 4.14 | 3.98 | 4.57 | 6.96 | 5.17 | 6.53 | 9.72 |
| Days Sales Outstanding | — | 26.75 | 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% | 29.9% | 35.4% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 109.6% | 116.9% | 153.5% | 266.6% | 94.7% | 87.4% | 113.1% | 187.2% | 165.2% | 224.9% |
| FCF Yield | 1.5% | 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 |
Geopolitical supply chain disruption
According to recent market data, TSM trades at a P/E of 41.36, which appears to price the company as a critical AI infrastructure utility rather than a cyclical manufacturer, suggesting investors are paying a significant premium for its role as the sole gatekeeper of high-performance compute silicon.
The current valuation multiple implies high expectations for sustained growth in the HPC segment, which may be justified by the company's technological lead. However, investors should monitor whether this premium remains sustainable if node migration velocity slows or if geopolitical risk premiums expand further.
Based on reported figures, TSM's ROIC has improved to 12.8% in 2026Q1 from 6.3% in 2024Q1, indicating that the company is successfully compounding returns on its massive capital investments as advanced nodes reach maturity and yield-learning loops drive superior manufacturing efficiency.
This upward trend in ROIC suggests that the company's capital allocation strategy is effectively translating heavy R&D and equipment spending into tangible earnings growth. The ability to maintain these returns while scaling capacity globally warrants further investigation into whether overseas fabs can replicate these efficiency levels.
As reported in financial statements, TSM's cash conversion cycle reached 54 days in 2026Q1, a figure that reflects the inherent complexity of managing long-lead-time semiconductor production cycles while maintaining sufficient inventory to meet the volatile demand of tier-one global technology customers.
The fluctuation in DIO and DPO suggests that the company is actively managing its supply chain to buffer against potential input shortages. Investors should interpret these shifts as a strategic response to the high-performance computing demand surge rather than a sign of operational inefficiency.
According to the company's balance sheet, TSM maintains a debt-to-equity ratio of 0.18 as of 2026Q1, demonstrating a fortress-like capital structure that provides significant financial flexibility to fund its multi-billion dollar global infrastructure expansion without relying on external debt markets.
This minimal leverage profile appears to be a deliberate strategic choice, allowing the company to navigate cyclical downturns and geopolitical uncertainty from a position of strength. The interest coverage ratio, which remains exceptionally high, suggests that debt service is not a material risk to the business model.
Market participants often misapply traditional cyclical P/E multiples to TSM, which obscures the company's structural role as a platform utility and fails to account for the margin-accretive potential of its advanced packaging business, which is becoming as critical as the wafer fabrication process itself.
Investors should instead focus on metrics like node migration velocity and capacity utilization, which better capture the company's competitive moat and long-term earning power. Relying solely on historical cyclical valuation ranges may lead to an undervaluation of the company's strategic importance in the global AI infrastructure ecosystem.
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 41.8x. 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 26.6x. 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 35.9%. 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 41.8x. 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 0.65% with a payout ratio of 27.2%.
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.