Taiwan Semiconductor Manufacturing Co (FRA:TSFA) EBIT: €64,320 Mil (TTM As of Mar. 2026)


FRA:TSFA Taiwan Semiconductor Manufacturing Co Ltd FRA:TSFA
87 GF Score
Price €383.50
GF Value €263.81
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Taiwan Semiconductor Manufacturing Co EBIT?

Taiwan Semiconductor Manufacturing Co FRA:TSFA -0.39% 87 EBIT is €64,320 Mil as of Mar. 2026. GuruFocus rates FRA:TSFA with a GF Score™ of 87/100 and a GF Value™ of €263.81 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Taiwan Semiconductor Manufacturing Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €18,742 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €64,320 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Taiwan Semiconductor Manufacturing Co's annualized ROC % for the quarter that ended in Mar. 2026 was 48.42%. Taiwan Semiconductor Manufacturing Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 71.28%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 3.33%.

Taiwan Semiconductor Manufacturing Co  (FRA:TSFA) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Taiwan Semiconductor Manufacturing Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=71539.476 * ( 1 - 16.72% )/( (118736.173 + 127359.557)/ 2 )
=59578.0756128/123047.865
=48.42 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=216081.356 - 34839.78 - ( 85204.918 - max(0, 41468.778 - 103974.181+85204.918))
=118736.173

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=235071.273 - 38466.695 - ( 93708.695 - max(0, 46527.431 - 115772.452+93708.695))
=127359.557

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Taiwan Semiconductor Manufacturing Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=74966.652/( ( (101757.73 + max(-19051.743, 0)) + (108583.556 + max(-20411.594, 0)) )/ 2 )
=74966.652/( ( 101757.73 + 108583.556 )/ 2 )
=74966.652/105170.643
=71.28 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7601.039 + 7847.766 + 3238.534) - (34839.78 + 0 + 2899.302)
=-19051.743

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9709.68 + 8453.318 + 3712.202) - (38466.695 + 0 + 3820.099)
=-20411.594

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Taiwan Semiconductor Manufacturing Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=64319.655/1933292.630
=3.33 %

* 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 EBIT Related Terms

Taiwan Semiconductor Manufacturing Co EBIT Historical Data

* Premium members only.

The historical data trend for Taiwan Semiconductor Manufacturing Co's EBIT 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.

Taiwan Semiconductor Manufacturing Co EBIT Chart

Taiwan Semiconductor Manufacturing Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21,319.60 35,595.78 29,087.78 41,523.54 55,949.24

Taiwan Semiconductor Manufacturing Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT 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 12,160.91 14,538.09 14,821.95 16,217.96 18,741.66

FRA:TSFA vs NVDA, AVGO, MU: EBIT Comparison

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's EV-to-EBIT falls into.


FRA:TSFA
87GF Score
Taiwan Semiconductor Manufacturing Co Ltd FRA:TSFA
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Taiwan Semiconductor Manufacturing Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €64,320 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €64,320 Mil mean?
Taiwan Semiconductor Manufacturing Co (FRA:TSFA) has a EBIT of €64,320 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Taiwan Semiconductor Manufacturing Co.
Is Taiwan Semiconductor Manufacturing Co's EBIT too high?
Taiwan Semiconductor Manufacturing Co's current EBIT is €64,320 Mil. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's EBIT compare to NVDA and AVGO?
Taiwan Semiconductor Manufacturing Co's EBIT of €64,320 Mil can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Semiconductors company?
A good EBIT depends on the Semiconductors industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Taiwan Semiconductor Manufacturing Co. Taiwan Semiconductor Manufacturing Co's current EBIT is €64,320 Mil. 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 (FRA:TSFA) is currently considered Significantly Overvalued. The stock's GF Value™ is €263.81, compared to a current price of €383.50 — trading 45.4% above its estimated fair value. The current EBIT is €64,320 Mil. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (FRA:TSFA), the current EBIT is €64,320 Mil as of Mar. 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 (FRA:TSFA) Overvalued in 2026?

Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued. The current stock price of €383.50 is trading 45.4% above its estimated GF Value™ of €263.81. GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.

Key valuation signals for FRA:TSFA:

  • EBIT: €64,320 Mil
  • GF Value™: €263.81 vs. price of €383.50 (45.4% above fair value)
  • GF Score™: 87/100 with 6 warning signs

No single metric tells the full story. See the FRA:TSFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

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 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.
87GF Score

Get the complete analysis for FRA:TSFA

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€383.50
Price
€263.81
GF Value