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TSM's EV-to-OCF is ranked worse than 59.28% of 1029
companies
in the Semiconductors industry
Industry Median: 13.83
vs TSM: 24.02
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 (NYSE:TSM) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $403.31.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Taiwan Semiconductor Manufacturing Co EV-to-OCF Related Terms
Taiwan Semiconductor Manufacturing Co EV-to-OCF 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-OCF Chart
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Semiconductors Industry
Taiwan Semiconductor Manufacturing Co's current Enterprise Value is $2,014,914 Mil.
Taiwan Semiconductor Manufacturing Co's Cash Flow from Operations 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 $83,902 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-OCF of 24.02 as of Jul. 31, 2026. This is 117% above median its historical median of 11.09. Over the past decade, Taiwan Semiconductor Manufacturing Co's EV-to-OCF has ranged from 6.15 to 25.62. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #610 out of 1029 companies in the Semiconductors industry, placing it in the top 59.3%.
Is Taiwan Semiconductor Manufacturing Co's EV-to-OCF too high?
Taiwan Semiconductor Manufacturing Co's current EV-to-OCF of 24.02 is 117% above median its 10-year median of 11.09. Over the past 10 years, this metric has ranged from a low of 6.15 to a high of 25.62. The Semiconductors industry median EV-to-OCF is 13.83. Taiwan Semiconductor Manufacturing Co's value of 24.02 is 73.7% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #610 out of 1029 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 97/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's EV-to-OCF compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #610 out of 1029 companies for EV-to-OCF. This places Taiwan Semiconductor Manufacturing Co in the lower half of its industry. The industry median EV-to-OCF is 13.83. Taiwan Semiconductor Manufacturing Co's value of 24.02 is 73.7% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own EV-to-OCF has ranged from 6.15 to 25.62 over the past decade. While the company's 10-year median is 11.09 vs. the industry median of 13.83, 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 EV-to-OCF for a Semiconductors company?
The median EV-to-OCF among Semiconductors companies is 13.83, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF 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-OCF of 24.02 is 73.7% 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median EV-to-OCF is 13.83 — 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-OCF is 24.02, which is 117% above median its own 10-year median of 11.09. 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 $343.45, compared to a current price of $403.31 — trading 17.4% above its estimated fair value. The current EV-to-OCF is 24.02, which is 117% above median its 10-year median of 11.09 and 73.7% above the Semiconductors industry median of 13.83. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 97/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current EV-to-OCF is 24.02 as of Jul. 31, 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 $403.31 is trading 17.4% above its estimated GF Value™ of $343.45.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSM:
EV-to-OCF: 24.02 (117% above median its 10-year median of 11.09)
GF Value™: $343.45 vs. price of $403.31 (17.4% above fair value)
Industry Position: 73.7% above the Semiconductors median (#610 of 1029)
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. 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-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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