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Taiwan Semiconductor Manufacturing Co (HAM:TSFA) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Taiwan Semiconductor Manufacturing Co Forward PE Ratio Related Terms
Taiwan Semiconductor Manufacturing Co Forward PE Ratio 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 Forward PE Ratio Chart
Taiwan Semiconductor Manufacturing Co Annual Data
Trend
2025-12
Forward PE Ratio
23.30
Taiwan Semiconductor Manufacturing Co Quarterly Data
2025-12
2026-03
2026-06
Forward PE Ratio
23.30
23.10
27.53
HAM:TSFA vs NVDA, AVGO, MU: Forward PE Ratio Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Forward PE Ratio falls into.
Taiwan Semiconductor Manufacturing Co Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Taiwan Semiconductor Manufacturing Co (HAM:TSFA) has a Forward PE Ratio of 24.91 as of Jul. 26, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #191 out of 550 companies in the Semiconductors industry, placing it in the top 34.7%.
Is Taiwan Semiconductor Manufacturing Co's Forward PE Ratio too high?
Taiwan Semiconductor Manufacturing Co's current Forward PE Ratio is 24.91. The Semiconductors industry median Forward PE Ratio is 29.76. Taiwan Semiconductor Manufacturing Co's value of 24.91 is 16.3% below this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #191 out of 550 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's Forward PE Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #191 out of 550 companies for Forward PE Ratio. This puts Taiwan Semiconductor Manufacturing Co in the upper half of its industry. The industry median Forward PE Ratio is 29.76. Taiwan Semiconductor Manufacturing Co's value of 24.91 is 16.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Semiconductors company?
The median Forward PE Ratio among Semiconductors companies is 29.76, based on 550 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current Forward PE Ratio of 24.91 is 16.3% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median Forward PE Ratio is 29.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current Forward PE Ratio is 24.91. 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 (HAM:TSFA) is currently considered Significantly Overvalued. The stock's GF Value™ is €266.20, compared to a current price of €360.50 — trading 35.4% above its estimated fair value. The current Forward PE Ratio is 24.91 and 16.3% below the Semiconductors industry median of 29.76. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (HAM:TSFA), the current Forward PE Ratio is 24.91 as of Jul. 26, 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 (HAM:TSFA) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued.
The current stock price of €360.50 is trading 35.4% above its estimated GF Value™ of €266.20.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for HAM:TSFA:
Forward PE Ratio: 24.91
GF Value™: €266.20 vs. price of €360.50 (35.4% above fair value)
Industry Position: 16.3% below the Semiconductors median (#191 of 550)
No single metric tells the full story. See the HAM:TSFA 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.
88GF Score
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