TSM (Taiwan Semiconductor Manufacturing Co) GF Value Rank: 3 (As of Jul. 14, 2026) — 40% Below Median

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Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSM Taiwan Semiconductor Manufacturing Co Ltd TSM
93 GF Score
Price $423.00
GF Value $288.53
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Taiwan Semiconductor Manufacturing Co GF Value Rank?

Taiwan Semiconductor Manufacturing Co TSM +0.34% 93 GF Value Rank is 3 as of Jul. 14, 2026, which is 40% below its 10-year median of 5.00. GuruFocus rates TSM with a GF Score™ of 93/100 and a GF Value™ of $288.53 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Taiwan Semiconductor Manufacturing Co has the GF Value Rank of 3.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Taiwan Semiconductor Manufacturing Co GF Value Rank Related Terms

TSM vs NVDA, AVGO, MU: GF Value Rank Comparison

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's GF Value Rank falls into.


TSM
93GF Score
Taiwan Semiconductor Manufacturing Co Ltd TSM
GF Value Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about GF Value Rank →
What does a GF Value Rank of 3 mean?
Taiwan Semiconductor Manufacturing Co (TSM) has a GF Value Rank of 3 as of Jul. 14, 2026. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 40% below median its historical median of 5.00. Over the past decade, Taiwan Semiconductor Manufacturing Co's GF Value Rank has ranged from 1.00 to 10.00.
Is Taiwan Semiconductor Manufacturing Co's GF Value Rank too high?
Taiwan Semiconductor Manufacturing Co's current GF Value Rank of 3 is 40% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 10.00. 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 GF Value Rank compare to NVDA and AVGO?
Taiwan Semiconductor Manufacturing Co's GF Value Rank of 3 can be compared against companies in the Semiconductors industry. Historically, Taiwan Semiconductor Manufacturing Co's own GF Value Rank has ranged from 1.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good GF Value Rank for a Semiconductors company?
A good GF Value Rank depends on the Semiconductors industry context. However, GF Value Rank 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 GF Value Rank mean?
A high GF Value Rank can signal that a stock is expensive relative to its fundamentals. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. Taiwan Semiconductor Manufacturing Co's current GF Value Rank is 3, which is 40% below median its own 10-year median of 5.00. 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 $288.53, compared to a current price of $423.00 — trading 46.6% above its estimated fair value. The current GF Value Rank is 3, which is 40% below median its 10-year median of 5.00. 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 GF Value Rank calculated?
GF Value Rank is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current GF Value Rank is 3 as of Jul. 14, 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 $423.00 is trading 46.6% above its estimated GF Value™ of $288.53. GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.

Key valuation signals for TSM:

  • GF Value Rank: 3 (40% below median its 10-year median of 5.00)
  • GF Value™: $288.53 vs. price of $423.00 (46.6% above fair value)
  • GF Score™: 93/100 with 6 warning signs

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

Address No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096
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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GF Value Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$423.00
Price
$288.53
GF Value