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Taiwan Semiconductor Manufacturing Co (NYSE:TSM) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Taiwan Semiconductor Manufacturing Co's Enterprise Value for the quarter that ended in Jun. 2026 was $2,398,041 Mil.
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.
* 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 EV-to-EBIT Related Terms
Taiwan Semiconductor Manufacturing Co EV-to-EBIT 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 EV-to-EBIT Chart
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
Taiwan Semiconductor Manufacturing Co's current Enterprise Value is $2,020,528 Mil.
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.
* 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 (TSM) has a EV-to-EBIT of 24.55 as of Jul. 20, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 50% above median its historical median of 16.33. Over the past decade, Taiwan Semiconductor Manufacturing Co's EV-to-EBIT has ranged from 9.19 to 28.08. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #242 out of 684 companies in the Semiconductors industry, placing it in the top 35.4%.
Is Taiwan Semiconductor Manufacturing Co's EV-to-EBIT too high?
Taiwan Semiconductor Manufacturing Co's current EV-to-EBIT of 24.55 is 50% above median its 10-year median of 16.33. Over the past 10 years, this metric has ranged from a low of 9.19 to a high of 28.08. The Semiconductors industry median EV-to-EBIT is 33.26. Taiwan Semiconductor Manufacturing Co's value of 24.55 is 26.2% below this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #242 out of 684 companies in the Semiconductors industry, which is above the industry midpoint. 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 EV-to-EBIT compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #242 out of 684 companies for EV-to-EBIT. This puts Taiwan Semiconductor Manufacturing Co in the upper half of its industry. The industry median EV-to-EBIT is 33.26. Taiwan Semiconductor Manufacturing Co's value of 24.55 is 26.2% below this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own EV-to-EBIT has ranged from 9.19 to 28.08 over the past decade. While the company's 10-year median is 16.33 vs. the industry median of 33.26, 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 EV-to-EBIT for a Semiconductors company?
The median EV-to-EBIT among Semiconductors companies is 33.26, based on 684 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current EV-to-EBIT of 24.55 is 26.2% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median EV-to-EBIT is 33.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current EV-to-EBIT is 24.55, which is 50% above median its own 10-year median of 16.33. 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 $404.41 — trading 19.7% above its estimated fair value. The current EV-to-EBIT is 24.55, which is 50% above median its 10-year median of 16.33 and 26.2% below the Semiconductors industry median of 33.26. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current EV-to-EBIT is 24.55 as of Jul. 20, 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 $404.41 is trading 19.7% above its estimated GF Value™ of $337.79.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSM:
EV-to-EBIT: 24.55 (50% above median its 10-year median of 16.33)
GF Value™: $337.79 vs. price of $404.41 (19.7% above fair value)
Industry Position: 26.2% below the Semiconductors median (#242 of 684)
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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