Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
Taiwan Semiconductor Manufacturing Co's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is
-27.17%.
Taiwan Semiconductor Manufacturing Co Margin of Safety % (DCF Earnings Based) Related Terms
STU:TSFA vs NVDA, AVGO, MU: Margin of Safety % (DCF Earnings Based) Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Margin of Safety % (DCF Earnings Based) falls into.
* 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.
The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.
What does a Margin of Safety % (DCF Earnings Based) of -27.17% mean?
Taiwan Semiconductor Manufacturing Co (STU:TSFA) has a Margin of Safety % (DCF Earnings Based) of -27.17% as of Jun. 25, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Taiwan Semiconductor Manufacturing Co.
Is Taiwan Semiconductor Manufacturing Co's Margin of Safety % (DCF Earnings Based) too high?
Taiwan Semiconductor Manufacturing Co's current Margin of Safety % (DCF Earnings Based) is -27.17%. 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 Margin of Safety % (DCF Earnings Based) compare to NVDA and AVGO?
Taiwan Semiconductor Manufacturing Co's Margin of Safety % (DCF Earnings Based) of -27.17% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Semiconductors company?
A good Margin of Safety % (DCF Earnings Based) depends on the Semiconductors industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Taiwan Semiconductor Manufacturing Co. Taiwan Semiconductor Manufacturing Co's current Margin of Safety % (DCF Earnings Based) is -27.17%. 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 (STU:TSFA) is currently considered Significantly Overvalued. The stock's GF Value™ is €264.50, compared to a current price of €386.00 — trading 45.9% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -27.17%. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (STU:TSFA), the current Margin of Safety % (DCF Earnings Based) is -27.17% as of Jun. 25, 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 (STU:TSFA) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued.
The current stock price of €386.00 is trading 45.9% above its estimated GF Value™ of €264.50.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for STU:TSFA:
Margin of Safety % (DCF Earnings Based): -27.17%
GF Value™: €264.50 vs. price of €386.00 (45.9% above fair value)
No single metric tells the full story. See the STU: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
Get the complete analysis for STU:TSFA
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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