TSM'
s Net Margin % Range Over the Past 10 Years
Min: 33.08 Med: 37.73 Max: 46.51
Current: 46.51
TSM's Net Margin % is ranked better than 97.95% of 1023
companies
in the Semiconductors industry
Industry Median: 4.15
vs TSM: 46.51
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Taiwan Semiconductor Manufacturing Co Net Margin % Related Terms
Taiwan Semiconductor Manufacturing Co Net Margin % 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 Net Margin % Chart
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Semiconductors Industry
* 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 Net Margin % of 50.48% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 34% above median its historical median of 37.73. Over the past decade, Taiwan Semiconductor Manufacturing Co's Net Margin % has ranged from 33.08 to 46.51. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #21 out of 1023 companies in the Semiconductors industry, placing it in the top 2.1%.
Is Taiwan Semiconductor Manufacturing Co's Net Margin % too high?
Taiwan Semiconductor Manufacturing Co's current Net Margin % of 50.48% is 34% above median its 10-year median of 37.73. Over the past 10 years, this metric has ranged from a low of 33.08 to a high of 46.51. The Semiconductors industry median Net Margin % is 4.15. Taiwan Semiconductor Manufacturing Co's value of 50.48% is 1116.4% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #21 out of 1023 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 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's Net Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #21 out of 1023 companies for Net Margin %. This places Taiwan Semiconductor Manufacturing Co in the top 2% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.15. Taiwan Semiconductor Manufacturing Co's value of 50.48% is 1116.4% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own Net Margin % has ranged from 33.08 to 46.51 over the past decade. While the company's 10-year median is 37.73 vs. the industry median of 4.15, 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 Net Margin % for a Semiconductors company?
The median Net Margin % among Semiconductors companies is 4.15, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current Net Margin % of 50.48% is 1116.4% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median Net Margin % is 4.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current Net Margin % is 50.48%, which is 34% above median its own 10-year median of 37.73. 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 $286.70, compared to a current price of $440.83 — trading 53.8% above its estimated fair value. The current Net Margin % is 50.48%, which is 34% above median its 10-year median of 37.73 and 1116.4% above the Semiconductors industry median of 4.15. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 93/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current Net Margin % is 50.48% 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 (TSM) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued.
The current stock price of $440.83 is trading 53.8% above its estimated GF Value™ of $286.70.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for TSM:
Net Margin %: 50.48% (34% above median its 10-year median of 37.73)
GF Value™: $286.70 vs. price of $440.83 (53.8% above fair value)
Industry Position: 1116.4% above the Semiconductors median (#21 of 1023)
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.
93GF Score
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