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GuruFocus has detected 4 Warning Signs with Taiwan Semiconductor Manufacturing Co Ltd $TSM.
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Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)
EV-to-EBITDA
7.93 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Taiwan Semiconductor Manufacturing Co Ltd's enterprise value is $151,795 Mil. Taiwan Semiconductor Manufacturing Co Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $19,132 Mil. Therefore, Taiwan Semiconductor Manufacturing Co Ltd's EV/EBITDA ratio for today is 7.93.

TSM' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.8   Max: 9.6
Current: 7.52

3.8
9.6

During the past 13 years, the highest EV/EBITDA Ratio of Taiwan Semiconductor Manufacturing Co Ltd was 9.60. The lowest was 3.80. And the median was 7.10.

TSM's EV-to-EBITDA is ranked higher than
76% of the 762 Companies
in the Global Semiconductors industry.

( Industry Median: 13.23 vs. TSM: 7.52 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Taiwan Semiconductor Manufacturing Co Ltd's stock price is $33.35. Taiwan Semiconductor Manufacturing Co Ltd's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $2.01. Therefore, Taiwan Semiconductor Manufacturing Co Ltd's P/E Ratio for today is 16.57.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Taiwan Semiconductor Manufacturing Co Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=151795.210/19132.3945048
=7.93

Taiwan Semiconductor Manufacturing Co Ltd's current Enterprise Value is $151,795 Mil.
Taiwan Semiconductor Manufacturing Co Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 3957.15951564 (Mar. 2016 ) + 4628.56978328 (Jun. 2016 ) + 5256.23171267 (Sep. 2016 ) + 5290.43349323 (Dec. 2016 ) = $19,132 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=33.35/2.01302383654
=16.57

Taiwan Semiconductor Manufacturing Co Ltd's share price for today is $33.35.
Taiwan Semiconductor Manufacturing Co Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.383583839153 (Mar. 2016 ) + 0.433436532508 (Jun. 2016 ) + 0.592887888556 (Sep. 2016 ) + 0.603115576319 (Dec. 2016 ) = $2.01.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Taiwan Semiconductor Manufacturing Co Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 6.954.938.526.577.367.917.256.865.816.98

Taiwan Semiconductor Manufacturing Co Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 6.796.866.285.615.245.816.716.757.636.98
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