ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Taiwan Semiconductor Manufacturing Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 41.29%.
Taiwan Semiconductor Manufacturing Co (FRA:TSFA) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
Taiwan Semiconductor Manufacturing Co ROCE % Related Terms
Taiwan Semiconductor Manufacturing Co ROCE % 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 ROCE % Chart
(1) Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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 (FRA:TSFA) has a ROCE % of 41.29% as of Mar. 2026.
Is Taiwan Semiconductor Manufacturing Co's ROCE % too high?
Taiwan Semiconductor Manufacturing Co's current ROCE % is 41.29%. The Semiconductors industry median ROCE % is 4.81. Taiwan Semiconductor Manufacturing Co's value of 41.29% is 759.3% above this industry median. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's ROCE % compare to NVDA and AVGO?
Taiwan Semiconductor Manufacturing Co's ROCE % of 41.29% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.81. Taiwan Semiconductor Manufacturing Co's value of 41.29% is 759.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Semiconductors company?
The median ROCE % among Semiconductors companies is 4.81, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current ROCE % of 41.29% is 759.3% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current ROCE % is 41.29%. 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 (FRA:TSFA) is currently considered Significantly Overvalued. The stock's GF Value™ is €263.02, compared to a current price of €383.50 — trading 45.8% above its estimated fair value. The current ROCE % is 41.29% and 759.3% above the Semiconductors industry median of 4.81. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (FRA:TSFA), the current ROCE % is 41.29% 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 (FRA:TSFA) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued.
The current stock price of €383.50 is trading 45.8% above its estimated GF Value™ of €263.02.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for FRA:TSFA:
ROCE %: 41.29%
GF Value™: €263.02 vs. price of €383.50 (45.8% above fair value)
Industry Position: 759.3% above the Semiconductors median
No single metric tells the full story. See the FRA:TSFA 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.
87GF Score
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