Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Taiwan Semiconductor Manufacturing Co's
Operating Income
for the
three
months ended in Mar. 2026 was €17,885 Mil. Taiwan Semiconductor Manufacturing Co's Interest Expense for the
three
months ended in Mar. 2026 was €-74 Mil.
Taiwan Semiconductor Manufacturing Co's interest coverage for the quarter that ended in Mar. 2026 was 242.54.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Taiwan Semiconductor Manufacturing Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
Taiwan Semiconductor Manufacturing Co (FRA:TSFA) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Taiwan Semiconductor Manufacturing Co Interest Coverage Related Terms
Taiwan Semiconductor Manufacturing Co Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Taiwan Semiconductor Manufacturing Co Interest Coverage Chart
FRA:TSFA vs NVDA, AVGO, MU: Interest Coverage Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Interest Coverage falls into.
Taiwan Semiconductor Manufacturing Co Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:TSFA) has a Interest Coverage of 242.54 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 105% above median its historical median of 118.08. Over the past decade, Taiwan Semiconductor Manufacturing Co's Interest Coverage has ranged from 76.79 to 272.29. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #125 out of 636 companies in the Semiconductors industry, placing it in the top 19.7%.
Is Taiwan Semiconductor Manufacturing Co's Interest Coverage too high?
Taiwan Semiconductor Manufacturing Co's current Interest Coverage of 242.54 is 105% above median its 10-year median of 118.08. Over the past 10 years, this metric has ranged from a low of 76.79 to a high of 272.29. The Semiconductors industry median Interest Coverage is 20.23. Taiwan Semiconductor Manufacturing Co's value of 242.54 is 1099.2% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #125 out of 636 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's Interest Coverage compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #125 out of 636 companies for Interest Coverage. This places Taiwan Semiconductor Manufacturing Co in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 20.23. Taiwan Semiconductor Manufacturing Co's value of 242.54 is 1099.2% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own Interest Coverage has ranged from 76.79 to 272.29 over the past decade. While the company's 10-year median is 118.08 vs. the industry median of 20.23, 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 Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 636 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current Interest Coverage of 242.54 is 1099.2% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current Interest Coverage is 242.54, which is 105% above median its own 10-year median of 118.08. 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 €264.43, compared to a current price of €377.50 — trading 42.8% above its estimated fair value. The current Interest Coverage is 242.54, which is 105% above median its 10-year median of 118.08 and 1099.2% above the Semiconductors industry median of 20.23. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 91/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (FRA:TSFA), the current Interest Coverage is 242.54 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 €377.50 is trading 42.8% above its estimated GF Value™ of €264.43.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for FRA:TSFA:
Interest Coverage: 242.54 (105% above median its 10-year median of 118.08)
GF Value™: €264.43 vs. price of €377.50 (42.8% above fair value)
Industry Position: 1099.2% above the Semiconductors median (#125 of 636)
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
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.
91GF Score
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