FRA:TSFA's ROE % is ranked better than 95.02% of 1004
companies
in the Semiconductors industry
Industry Median: 4.55
vs FRA:TSFA: 37.58
Taiwan Semiconductor Manufacturing Co (FRA:TSFA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Taiwan Semiconductor Manufacturing Co ROE % Related Terms
Taiwan Semiconductor Manufacturing Co ROE % 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.
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Semiconductors Industry
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Taiwan Semiconductor Manufacturing Co (FRA:TSFA) has a ROE % of 40.65% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 44% above median its historical median of 28.26. Over the past decade, Taiwan Semiconductor Manufacturing Co's ROE % has ranged from 21.62 to 39.31. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #50 out of 1004 companies in the Semiconductors industry, placing it in the top 5%.
Is Taiwan Semiconductor Manufacturing Co's ROE % too high?
Taiwan Semiconductor Manufacturing Co's current ROE % of 40.65% is 44% above median its 10-year median of 28.26. Over the past 10 years, this metric has ranged from a low of 21.62 to a high of 39.31. The Semiconductors industry median ROE % is 4.55. Taiwan Semiconductor Manufacturing Co's value of 40.65% is 793.4% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #50 out of 1004 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #50 out of 1004 companies for ROE %. This places Taiwan Semiconductor Manufacturing Co in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 4.55. Taiwan Semiconductor Manufacturing Co's value of 40.65% is 793.4% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own ROE % has ranged from 21.62 to 39.31 over the past decade. While the company's 10-year median is 28.26 vs. the industry median of 4.55, 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 ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current ROE % of 40.65% is 793.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median ROE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current ROE % is 40.65%, which is 44% above median its own 10-year median of 28.26. 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 ROE % is 40.65%, which is 44% above median its 10-year median of 28.26 and 793.4% above the Semiconductors industry median of 4.55. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (FRA:TSFA), the current ROE % is 40.65% 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:
ROE %: 40.65% (44% above median its 10-year median of 28.26)
GF Value™: €263.02 vs. price of €383.50 (45.8% above fair value)
Industry Position: 793.4% above the Semiconductors median (#50 of 1004)
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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