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Taiwan Semiconductor Manufacturing Co (TPE:2330) E10 : NT$25.40 (As of Dec. 2024)


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What is Taiwan Semiconductor Manufacturing Co E10?

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's adjusted earnings per share data for the three months ended in Dec. 2024 was NT$14.448. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is NT$25.40 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Taiwan Semiconductor Manufacturing Co's average E10 Growth Rate was 17.90% per year. During the past 3 years, the average E10 Growth Rate was 20.50% per year. During the past 5 years, the average E10 Growth Rate was 20.00% per year. During the past 10 years, the average E10 Growth Rate was 16.20% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Taiwan Semiconductor Manufacturing Co was 21.60% per year. The lowest was 8.90% per year. And the median was 13.25% per year.

As of today (2025-03-24), Taiwan Semiconductor Manufacturing Co's current stock price is NT$972.00. Taiwan Semiconductor Manufacturing Co's E10 for the quarter that ended in Dec. 2024 was NT$25.40. Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio of today is 38.27.

During the past 13 years, the highest Shiller PE Ratio of Taiwan Semiconductor Manufacturing Co was 54.42. The lowest was 19.55. And the median was 27.83.


Taiwan Semiconductor Manufacturing Co E10 Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's E10 can be seen below:

* 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.

* Premium members only.

Taiwan Semiconductor Manufacturing Co E10 Chart

Taiwan Semiconductor Manufacturing Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.98 14.52 18.61 21.55 25.40

Taiwan Semiconductor Manufacturing Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.55 22.57 23.35 24.30 25.40

Competitive Comparison of Taiwan Semiconductor Manufacturing Co's E10

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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's Shiller PE Ratio Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio falls into.



Taiwan Semiconductor Manufacturing Co E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Taiwan Semiconductor Manufacturing Co's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=14.448/133.1571*133.1571
=14.448

Current CPI (Dec. 2024) = 133.1571.

Taiwan Semiconductor Manufacturing Co Quarterly Data

per share eps CPI Adj_EPS
201503 3.050 99.621 4.077
201506 3.060 100.684 4.047
201509 2.910 100.392 3.860
201512 2.670 99.792 3.563
201603 2.500 100.470 3.313
201606 2.800 101.688 3.667
201609 3.730 101.861 4.876
201612 3.760 101.863 4.915
201703 3.380 102.862 4.375
201706 2.560 103.349 3.298
201709 3.470 104.136 4.437
201712 3.900 104.011 4.993
201803 3.460 105.290 4.376
201806 2.790 106.317 3.494
201809 3.440 106.507 4.301
201812 3.856 105.998 4.844
201903 2.370 107.251 2.942
201906 2.570 108.070 3.167
201909 3.900 108.329 4.794
201912 4.470 108.420 5.490
202003 4.510 108.902 5.515
202006 4.660 108.767 5.705
202009 5.300 109.815 6.427
202012 5.230 109.897 6.337
202103 5.390 111.754 6.422
202106 5.180 114.631 6.017
202109 6.030 115.734 6.938
202112 6.250 117.630 7.075
202203 7.820 121.301 8.584
202206 9.140 125.017 9.735
202209 10.830 125.227 11.516
202212 11.410 125.222 12.133
202303 7.980 127.348 8.344
202306 7.010 128.729 7.251
202309 8.140 129.860 8.347
202312 9.205 129.419 9.471
202403 8.700 131.776 8.791
202406 9.560 132.554 9.604
202409 12.540 133.029 12.552
202412 14.448 133.157 14.448

Add all the adjusted EPS together and divide 10 will get our e10.


Taiwan Semiconductor Manufacturing Co  (TPE:2330) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=972.00/25.40
=38.27

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Taiwan Semiconductor Manufacturing Co was 54.42. The lowest was 19.55. And the median was 27.83.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Taiwan Semiconductor Manufacturing Co E10 Related Terms

Thank you for viewing the detailed overview of Taiwan Semiconductor Manufacturing Co's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Taiwan Semiconductor Manufacturing Co Business Description

Address
No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096
Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with over 60% market share. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public 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 customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.

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