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Taiwan Semiconductor CoROCO:5425 +4.07%82 Pretax Margin % is 9.50% as of Dec. 2025, which is 31% below its 10-year median of 13.79. GuruFocus rates ROCO:5425 with a GF Score™ of 82/100 and a GF Value™ of NT$87.67 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,023 Semiconductors companies, Taiwan Semiconductor Co ranks better than 57.58% on this metric.
The historical rank and industry rank for Taiwan Semiconductor Co's Pretax Margin % or its related term are showing as below:
ROCO:5425'
s Pretax Margin % Range Over the Past 10 Years
Min: 7.98 Med: 13.79 Max: 19.21
Current: 7.98
ROCO:5425's Pretax Margin % is ranked better than 57.58% of 1023
companies
in the Semiconductors industry
Industry Median: 5.04
vs ROCO:5425: 7.98
Taiwan Semiconductor Co (ROCO:5425) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Taiwan Semiconductor Co Pretax Margin % Related Terms
Taiwan Semiconductor Co Pretax 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.
ROCO:5425 vs NVDA, AVGO, MU: Pretax Margin % Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Co's Pretax Margin %, along with its competitors' market caps and Pretax 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 Co Pretax Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Co's Pretax Margin % 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.
Taiwan Semiconductor Co (ROCO:5425) has a Pretax Margin % of 9.50% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Taiwan Semiconductor Co and its competitors. This is 31% below median its historical median of 13.79. Over the past decade, Taiwan Semiconductor Co's Pretax Margin % has ranged from 7.98 to 19.21. According to the industry distribution chart, Taiwan Semiconductor Co ranks #434 out of 1023 companies in the Semiconductors industry, placing it in the top 42.4%.
Is Taiwan Semiconductor Co's Pretax Margin % too high?
Taiwan Semiconductor Co's current Pretax Margin % of 9.50% is 31% below median its 10-year median of 13.79. Over the past 10 years, this metric has ranged from a low of 7.98 to a high of 19.21. The Semiconductors industry median Pretax Margin % is 5.04. Taiwan Semiconductor Co's value of 9.50% is 88.5% above this industry median. Based on the distribution chart, Taiwan Semiconductor Co ranks #434 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Taiwan Semiconductor Co has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Co's Pretax Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Co ranks #434 out of 1023 companies for Pretax Margin %. This puts Taiwan Semiconductor Co in the upper half of its industry. The industry median Pretax Margin % is 5.04. Taiwan Semiconductor Co's value of 9.50% is 88.5% above this benchmark. Historically, Taiwan Semiconductor Co's own Pretax Margin % has ranged from 7.98 to 19.21 over the past decade. While the company's 10-year median is 13.79 vs. the industry median of 5.04, Taiwan Semiconductor 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 Pretax Margin % for a Semiconductors company?
The median Pretax Margin % among Semiconductors companies is 5.04, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Co's current Pretax Margin % of 9.50% is 88.5% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Taiwan Semiconductor Co and its competitors. For the Semiconductors industry, the median Pretax Margin % is 5.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Co's current Pretax Margin % is 9.50%, which is 31% below median its own 10-year median of 13.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Semiconductor Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Semiconductor Co (ROCO:5425) is currently considered Fairly Valued. The stock's GF Value™ is NT$87.67, compared to a current price of NT$89.50 — trading 2.1% above its estimated fair value. The current Pretax Margin % is 9.50%, which is 31% below median its 10-year median of 13.79 and 88.5% above the Semiconductors industry median of 5.04. Taiwan Semiconductor Co's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Taiwan Semiconductor Co (ROCO:5425), the current Pretax Margin % is 9.50% as of Dec. 2025. 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 Co (ROCO:5425) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Co stock appears to be overvalued.
The current stock price of NT$89.50 is trading 2.1% above its estimated GF Value™ of NT$87.67.
GuruFocus considers Taiwan Semiconductor Co to be Fairly Valued.
Key valuation signals for ROCO:5425:
Pretax Margin %: 9.50% (31% below median its 10-year median of 13.79)
GF Value™: NT$87.67 vs. price of NT$89.50 (2.1% above fair value)
Industry Position: 88.5% above the Semiconductors median (#434 of 1023)
No single metric tells the full story. See the ROCO:5425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Semiconductor Co Ltd is a company that is mainly engaged in the manufacturing and sale of semiconductor devices. The company's segment includes Rectifiers and Bar Code Printers. It generates maximum revenue from the Rectifiers segment. Its product portfolio includes Bridge Rectifier, Diode, DIAC and Thyristor, ESD Protection, Photocoupler, Transistor, Hall Effect Sensors, Voltage Reference, Switching Regulator, Linear Voltage Regulator, Amplifier and Comparator, and others.
82GF Score
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