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Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)
Shiller P/E Ratio
26.24 (As of Today)

As of today, Taiwan Semiconductor Manufacturing Co Ltd's current share price is $28.60. Taiwan Semiconductor Manufacturing Co Ltd's E10 for the quarter that ended in Jun. 2016 was $1.09. Taiwan Semiconductor Manufacturing Co Ltd's Shiller P/E Ratio for today is 26.24.

TSM' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.9   Max: 29.17
Current: 25.73

12.9
29.17

During the past 13 years, Taiwan Semiconductor Manufacturing Co Ltd's highest Shiller P/E Ratio was 29.17. The lowest was 12.90. And the median was 20.87.

TSM's Shiller P/E Ratio is ranked higher than
79% of the 100 Companies
in the Global Semiconductors industry.

( Industry Median: 41.01 vs. TSM: 25.73 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Taiwan Semiconductor Manufacturing Co Ltd's adjusted earnings per share data for the three months ended in Jun. 2016 was $0.433. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.09 for the trailing ten years ended in Jun. 2016.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Taiwan Semiconductor Manufacturing Co Ltd's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=28.60/1.09
=26.24

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Taiwan Semiconductor Manufacturing Co Ltd's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, Taiwan Semiconductor Manufacturing Co Ltd's adjusted earnings per share data for the three months ended in Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=0.433436532508/241.038*241.038
=0.433

Current CPI (Jun. 2016) = 241.038.

Taiwan Semiconductor Manufacturing Co Ltd Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 0.3040.3830.4880.4340.4850.4950.4450.4070.3840.433
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 0.3100.3880.4940.4450.4950.5000.4510.4150.3880.433
201109201112201203201206201209201212201303201306201309201312
per share eps 0.1970.2020.2190.2690.3390.2310.2570.3340.3380.264
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.2090.2150.2300.2830.3530.2420.2660.3450.3480.273
200903200906200909200912201003201006201009201012201103201106
per share eps 0.0090.1430.1810.1950.2040.2410.2860.2630.2370.241
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.0100.1600.2020.2180.2260.2660.3160.2890.2560.258
200609200612200703200706200709200712200803200806200809200812
per share eps 0.1850.1620.1090.1430.1660.1950.1760.1830.0390.072
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS 0.2200.1940.1280.1650.1920.2240.1980.2010.0430.082

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Taiwan Semiconductor Manufacturing Co Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.0022.9715.3820.8020.8619.2221.3720.6624.8022.29

Taiwan Semiconductor Manufacturing Co Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 22.6223.3521.5224.8024.6222.6920.4022.2924.6123.97
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