Taiwan Semiconductor Manufacturing Co (MEX:TSMN) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Taiwan Semiconductor Manufacturing Co PS Ratio Related Terms
Taiwan Semiconductor Manufacturing Co PS Ratio 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 PS Ratio Chart
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's PS Ratio, along with its competitors' market caps and PS Ratio 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 PS Ratio vs Semiconductors Industry
Taiwan Semiconductor Manufacturing Co PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Taiwan Semiconductor Manufacturing Co's Share Price of today is MXN7563.78. Taiwan Semiconductor Manufacturing Co's Revenue per Share 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 MXN469.32.
* 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:
Taiwan Semiconductor Manufacturing Co (MEX:TSMN) has a PS Ratio of 16.12 as of Jun. 28, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 130% above median its historical median of 7.02. Over the past decade, Taiwan Semiconductor Manufacturing Co's PS Ratio has ranged from 4.74 to 15.23. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #811 out of 1020 companies in the Semiconductors industry, placing it in the top 79.5%.
Is Taiwan Semiconductor Manufacturing Co's PS Ratio too high?
Taiwan Semiconductor Manufacturing Co's current PS Ratio of 16.12 is 130% above median its 10-year median of 7.02. Over the past 10 years, this metric has ranged from a low of 4.74 to a high of 15.23. The Semiconductors industry median PS Ratio is 4.36. Taiwan Semiconductor Manufacturing Co's value of 16.12 is 270.1% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #811 out of 1020 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's PS Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #811 out of 1020 companies for PS Ratio. This places Taiwan Semiconductor Manufacturing Co in the lower half of its industry. The industry median PS Ratio is 4.36. Taiwan Semiconductor Manufacturing Co's value of 16.12 is 270.1% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own PS Ratio has ranged from 4.74 to 15.23 over the past decade. While the company's 10-year median is 7.02 vs. the industry median of 4.36, 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 PS Ratio for a Semiconductors company?
The median PS Ratio among Semiconductors companies is 4.36, based on 1,020 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current PS Ratio of 16.12 is 270.1% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median PS Ratio is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current PS Ratio is 16.12, which is 130% above median its own 10-year median of 7.02. 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 (MEX:TSMN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN5,298.30, compared to a current price of MXN7,563.78 — trading 42.8% above its estimated fair value. The current PS Ratio is 16.12, which is 130% above median its 10-year median of 7.02 and 270.1% above the Semiconductors industry median of 4.36. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (MEX:TSMN), the current PS Ratio is 16.12 as of Jun. 28, 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 (MEX:TSMN) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued.
The current stock price of MXN7,563.78 is trading 42.8% above its estimated GF Value™ of MXN5,298.30.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for MEX:TSMN:
PS Ratio: 16.12 (130% above median its 10-year median of 7.02)
GF Value™: MXN5,298.30 vs. price of MXN7,563.78 (42.8% above fair value)
Industry Position: 270.1% above the Semiconductors median (#811 of 1020)
No single metric tells the full story. See the MEX:TSMN 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.
82GF Score
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