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Taiwan Semiconductor Mfg. Co. Ltd. (TSM) Stock by the Numbers

Friday, August 19, 2022 10:58 AM | InvestorsObserver Analysts
Taiwan Semiconductor Mfg. Co. Ltd. (TSM) Stock by the Numbers

Taiwan Semiconductor Mfg. Co. Ltd. (TSM) receives a strong valuation score of 66 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. TSM holds a better value than 66% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 66
TSM gets a 66 Valuation Rank today. Find out what this means to you and get the rest of the rankings on TSM!

Metrics Analysis

TSM has a trailing twelve month Price to Earnings (PE) ratio of 17.4. The historical average of roughly 15 shows a average value for TSM stock as investors are paying fair share prices relative to the company's earnings. TSM's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.10 justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
TSM's 12-month-forward PE to Growth (PEG) ratio of 0.59 is considered a good value as the market is undervaluing TSM in relation to the company's projected earnings growth. TSM's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

All together these valuation metrics paint a pretty strong picture for TSM at its current price due to a undervalued PEG ratio despite strong growth. The PE and PEG for TSM are better than the average of the market resulting in a valuation score of 66. Click Here to get the full Report on Taiwan Semiconductor Mfg. Co. Ltd. (TSM) stock.

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