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Taiwan Semiconductor Manufacturing CoTSM -1.07%98 Earnings Yield (Joel Greenblatt) % is 4.30% as of Jun. 2026, which is 30% below its 10-year median of 6.12. GuruFocus rates TSM with a GF Score™ of 98/100 and a GF Value™ of $296.91 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,023 Semiconductors companies, Taiwan Semiconductor Manufacturing Co ranks better than 75.66% on this metric.
The historical rank and industry rank for Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
TSM'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.56 Med: 6.12 Max: 10.88
Current: 4.4
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Taiwan Semiconductor Manufacturing Co was 10.88%. The lowest was 3.56%. And the median was 6.12%.
TSM's Earnings Yield (Joel Greenblatt) % is ranked better than 75.66% of 1023
companies
in the Semiconductors industry
Industry Median: 1.3
vs TSM: 4.40
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Taiwan Semiconductor Manufacturing Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 21.09%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
* 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 Earnings Yield (Joel Greenblatt) % Chart
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) % falls into.
Taiwan Semiconductor Manufacturing Co Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Taiwan Semiconductor Manufacturing Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $82,299 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 4.30% mean?
Taiwan Semiconductor Manufacturing Co (TSM) has a Earnings Yield (Joel Greenblatt) % of 4.30% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 30% below median its historical median of 6.12. Over the past decade, Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) % has ranged from 3.56 to 10.88. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #249 out of 1023 companies in the Semiconductors industry, placing it in the top 24.3%.
Is Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) % too high?
Taiwan Semiconductor Manufacturing Co's current Earnings Yield (Joel Greenblatt) % of 4.30% is 30% below median its 10-year median of 6.12. Over the past 10 years, this metric has ranged from a low of 3.56 to a high of 10.88. The Semiconductors industry median Earnings Yield (Joel Greenblatt) % is 1.30. Taiwan Semiconductor Manufacturing Co's value of 4.30% is 230.8% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #249 out of 1023 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 Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #249 out of 1023 companies for Earnings Yield (Joel Greenblatt) %. This places Taiwan Semiconductor Manufacturing Co in the top 24% of its industry — outperforming the majority of peers. The industry median Earnings Yield (Joel Greenblatt) % is 1.30. Taiwan Semiconductor Manufacturing Co's value of 4.30% is 230.8% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own Earnings Yield (Joel Greenblatt) % has ranged from 3.56 to 10.88 over the past decade. While the company's 10-year median is 6.12 vs. the industry median of 1.30, Taiwan Semiconductor Manufacturing Co has consistently been above 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 Earnings Yield (Joel Greenblatt) % for a Semiconductors company?
The median Earnings Yield (Joel Greenblatt) % among Semiconductors companies is 1.30, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current Earnings Yield (Joel Greenblatt) % of 4.30% is 230.8% above 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median Earnings Yield (Joel Greenblatt) % is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current Earnings Yield (Joel Greenblatt) % is 4.30%, which is 30% below median its own 10-year median of 6.12. 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 Significantly Overvalued. The stock's GF Value™ is $296.91, compared to a current price of $399.09 — trading 34.4% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 4.30%, which is 30% below median its 10-year median of 6.12 and 230.8% above the Semiconductors industry median of 1.30. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 98/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current Earnings Yield (Joel Greenblatt) % is 4.30% 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 $399.09 is trading 34.4% above its estimated GF Value™ of $296.91.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for TSM:
Earnings Yield (Joel Greenblatt) %: 4.30% (30% below median its 10-year median of 6.12)
GF Value™: $296.91 vs. price of $399.09 (34.4% above fair value)
Industry Position: 230.8% above the Semiconductors median (#249 of 1023)
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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