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A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
TSM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.26 Med: 0.4 Max: 0.69
Current: 0.3
During the past 13 years, the highest Debt-to-EBITDA Ratio of Taiwan Semiconductor Manufacturing Co was 0.69. The lowest was 0.26. And the median was 0.40.
TSM's Debt-to-EBITDA is ranked better than 75.9% of 722
companies
in the Semiconductors industry
Industry Median: 1.445
vs TSM: 0.30
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA Related Terms
Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA Chart
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Taiwan Semiconductor Manufacturing Co (TSM) has a Debt-to-EBITDA of 0.25 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Taiwan Semiconductor Manufacturing Co. This is 38% below median its historical median of 0.40. Over the past decade, Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA has ranged from 0.26 to 0.69. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #174 out of 722 companies in the Semiconductors industry, placing it in the top 24.1%.
Is Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA too high?
Taiwan Semiconductor Manufacturing Co's current Debt-to-EBITDA of 0.25 is 38% below median its 10-year median of 0.40. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 0.69. The Semiconductors industry median Debt-to-EBITDA is 1.45. Taiwan Semiconductor Manufacturing Co's value of 0.25 is 82.7% below this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #174 out of 722 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 98/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #174 out of 722 companies for Debt-to-EBITDA. This places Taiwan Semiconductor Manufacturing Co in the top 24% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.45. Taiwan Semiconductor Manufacturing Co's value of 0.25 is 82.7% below this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own Debt-to-EBITDA has ranged from 0.26 to 0.69 over the past decade. While the company's 10-year median is 0.40 vs. the industry median of 1.45, Taiwan Semiconductor Manufacturing Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Semiconductors company?
The median Debt-to-EBITDA among Semiconductors companies is 1.45, based on 722 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current Debt-to-EBITDA of 0.25 is 82.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Taiwan Semiconductor Manufacturing Co. For the Semiconductors industry, the median Debt-to-EBITDA is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current Debt-to-EBITDA is 0.25, which is 38% below median its own 10-year median of 0.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Semiconductor Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co (TSM) is currently considered Modestly Overvalued. The stock's GF Value™ is $337.79, compared to a current price of $405.46 — trading 20% above its estimated fair value. The current Debt-to-EBITDA is 0.25, which is 38% below median its 10-year median of 0.40 and 82.7% below the Semiconductors industry median of 1.45. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current Debt-to-EBITDA is 0.25 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Taiwan Semiconductor Manufacturing Co (TSM) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued.
The current stock price of $405.46 is trading 20% above its estimated GF Value™ of $337.79.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSM:
Debt-to-EBITDA: 0.25 (38% below median its 10-year median of 0.40)
GF Value™: $337.79 vs. price of $405.46 (20% above fair value)
Industry Position: 82.7% below the Semiconductors median (#174 of 722)
No single metric tells the full story. See the TSM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Semiconductor Manufacturing Co Business Description
Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with about 70% market share in 2025. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public in Taiwan in 1994 and as an ADR in the US in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious base of customers, including Apple, AMD, and Nvidia, that look to apply its cutting-edge process technologies to their semiconductor designs. TSMC employs more than 83,000 people.
98GF Score
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