What is Taiwan Semiconductor Manufacturing Co PE Ratio (TTM)?
Taiwan Semiconductor Manufacturing CoTSM +0.90%93 PE Ratio (TTM) is 36.58 as of Jun. 24, 2026, which is 83% above its 10-year median of 19.94. GuruFocus rates TSM with a GF Score™ of 93/100 and a GF Value™ of $286.70 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 653 Semiconductors companies, Taiwan Semiconductor Manufacturing Co ranks better than 64.47% on this metric.
TSM'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: 11.15 Med: 19.94 Max: 36.86
Current: 36.58
During the past 13 years, the highest PE Ratio (TTM) of Taiwan Semiconductor Manufacturing Co was 36.86. The lowest was 11.15. And the median was 19.94.
TSM's PE Ratio (TTM) is ranked better than 64.47% of 653
companies
in the Semiconductors industry
Industry Median: 52.95
vs TSM: 36.58
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) PE Ratio (TTM) Explanation
The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) can also be affected by non-recurring-items 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 (TTM).
Taiwan Semiconductor Manufacturing Co PE Ratio (TTM) Related Terms
Taiwan Semiconductor Manufacturing Co PE Ratio (TTM) 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 PE Ratio (TTM) Chart
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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 PE Ratio (TTM) vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's PE Ratio (TTM) falls into.
Taiwan Semiconductor Manufacturing Co PE Ratio (TTM) Calculation
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Taiwan Semiconductor Manufacturing Co's Share Price of today is $440.32.
Taiwan Semiconductor Manufacturing Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $12.04.
* 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.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Taiwan Semiconductor Manufacturing Co (TSM) has a PE Ratio (TTM) of 36.58 as of Jun. 24, 2026. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 83% above median its historical median of 19.94. Over the past decade, Taiwan Semiconductor Manufacturing Co's PE Ratio (TTM) has ranged from 11.15 to 36.86. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #232 out of 653 companies in the Semiconductors industry, placing it in the top 35.5%.
Is Taiwan Semiconductor Manufacturing Co's PE Ratio (TTM) too high?
Taiwan Semiconductor Manufacturing Co's current PE Ratio (TTM) of 36.58 is 83% above median its 10-year median of 19.94. Over the past 10 years, this metric has ranged from a low of 11.15 to a high of 36.86. The Semiconductors industry median PE Ratio (TTM) is 52.95. Taiwan Semiconductor Manufacturing Co's value of 36.58 is 30.9% below this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #232 out of 653 companies in the Semiconductors industry, which is above the industry midpoint. 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 PE Ratio (TTM) compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #232 out of 653 companies for PE Ratio (TTM). This puts Taiwan Semiconductor Manufacturing Co in the upper half of its industry. The industry median PE Ratio (TTM) is 52.95. Taiwan Semiconductor Manufacturing Co's value of 36.58 is 30.9% below this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own PE Ratio (TTM) has ranged from 11.15 to 36.86 over the past decade. While the company's 10-year median is 19.94 vs. the industry median of 52.95, Taiwan Semiconductor Manufacturing Co has consistently been below 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 PE Ratio (TTM) for a Semiconductors company?
The median PE Ratio (TTM) among Semiconductors companies is 52.95, based on 653 companies in the industry. Companies in the top quartile (top 25%) have a PE Ratio (TTM) significantly above this median, while those in the bottom quartile fall well below. However, PE Ratio (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current PE Ratio (TTM) of 36.58 is 30.9% 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 PE Ratio (TTM) mean?
A high PE Ratio (TTM) can signal that a stock is expensive relative to its fundamentals. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median PE Ratio (TTM) is 52.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current PE Ratio (TTM) is 36.58, which is 83% above median its own 10-year median of 19.94. 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 $440.32 — trading 53.6% above its estimated fair value. The current PE Ratio (TTM) is 36.58, which is 83% above median its 10-year median of 19.94 and 30.9% below the Semiconductors industry median of 52.95. 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 PE Ratio (TTM) calculated?
PE Ratio (TTM) is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current PE Ratio (TTM) is 36.58 as of Jun. 24, 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 $440.32 is trading 53.6% above its estimated GF Value™ of $286.70.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for TSM:
PE Ratio (TTM): 36.58 (83% above median its 10-year median of 19.94)
GF Value™: $286.70 vs. price of $440.32 (53.6% above fair value)
Industry Position: 30.9% below the Semiconductors median (#232 of 653)
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.
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