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TSM'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.39 Med: 10.11 Max: 20.36
Current: 19.59
During the past 13 years, the highest EV-to-EBITDA of Taiwan Semiconductor Manufacturing Co was 20.36. The lowest was 6.39. And the median was 10.11.
TSM's EV-to-EBITDA is ranked better than 59.36% of 748
companies
in the Semiconductors industry
Industry Median: 25.345
vs TSM: 19.59
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Taiwan Semiconductor Manufacturing Co's PE Ratio (TTM) for today is calculated as:
Taiwan Semiconductor Manufacturing Co's share price for today is $424.61.
Taiwan Semiconductor Manufacturing Co's Earnings per Share (Diluted) 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 $13.754.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
* 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-EBITDA Chart
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Semiconductors Industry
Taiwan Semiconductor Manufacturing Co's current Enterprise Value is $2,125,115 Mil.
Taiwan Semiconductor Manufacturing Co's EBITDA 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 $98,021 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-EBITDA of 21.68 as of Jul. 22, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Taiwan Semiconductor Manufacturing Co. This is 114% above median its historical median of 10.11. Over the past decade, Taiwan Semiconductor Manufacturing Co's EV-to-EBITDA has ranged from 6.39 to 20.36. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #304 out of 748 companies in the Semiconductors industry, placing it in the top 40.6%.
Is Taiwan Semiconductor Manufacturing Co's EV-to-EBITDA too high?
Taiwan Semiconductor Manufacturing Co's current EV-to-EBITDA of 21.68 is 114% above median its 10-year median of 10.11. Over the past 10 years, this metric has ranged from a low of 6.39 to a high of 20.36. The Semiconductors industry median EV-to-EBITDA is 25.35. Taiwan Semiconductor Manufacturing Co's value of 21.68 is 14.5% below this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #304 out of 748 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Taiwan Semiconductor Manufacturing Co has a GF Scoreâ„¢ of 97/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's EV-to-EBITDA compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #304 out of 748 companies for EV-to-EBITDA. This puts Taiwan Semiconductor Manufacturing Co in the upper half of its industry. The industry median EV-to-EBITDA is 25.35. Taiwan Semiconductor Manufacturing Co's value of 21.68 is 14.5% below this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own EV-to-EBITDA has ranged from 6.39 to 20.36 over the past decade. While the company's 10-year median is 10.11 vs. the industry median of 25.35, 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-EBITDA for a Semiconductors company?
The median EV-to-EBITDA among Semiconductors companies is 25.35, based on 748 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-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 EV-to-EBITDA of 21.68 is 14.5% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Taiwan Semiconductor Manufacturing Co. For the Semiconductors industry, the median EV-to-EBITDA is 25.35 — 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-EBITDA is 21.68, which is 114% above median its own 10-year median of 10.11. 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 $304.64, compared to a current price of $424.61 — trading 39.4% above its estimated fair value. The current EV-to-EBITDA is 21.68, which is 114% above median its 10-year median of 10.11 and 14.5% below the Semiconductors industry median of 25.35. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 97/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current EV-to-EBITDA is 21.68 as of Jul. 22, 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 $424.61 is trading 39.4% above its estimated GF Value™ of $304.64.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for TSM:
EV-to-EBITDA: 21.68 (114% above median its 10-year median of 10.11)
GF Value™: $304.64 vs. price of $424.61 (39.4% above fair value)
Industry Position: 14.5% below the Semiconductors median (#304 of 748)
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.
97GF Score
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EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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