5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Taiwan Semiconductor Manufacturing Co's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 43.38%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
MEX:TSMN's 5-Year ROIIC % is ranked better than 88.02% of 918
companies
in the Semiconductors industry
Industry Median: 2.21
vs MEX:TSMN: 43.38
Taiwan Semiconductor Manufacturing Co (MEX:TSMN) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Taiwan Semiconductor Manufacturing Co 5-Year ROIIC % Related Terms
Taiwan Semiconductor Manufacturing Co 5-Year ROIIC % 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 5-Year ROIIC % Chart
MEX:TSMN vs NVDA, AVGO, MU: 5-Year ROIIC % Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Taiwan Semiconductor Manufacturing Co (MEX:TSMN) has a 5-Year ROIIC % of 43.38 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #110 out of 918 companies in the Semiconductors industry, placing it in the top 12%.
Is Taiwan Semiconductor Manufacturing Co's 5-Year ROIIC % too high?
Taiwan Semiconductor Manufacturing Co's current 5-Year ROIIC % is 43.38. The Semiconductors industry median 5-Year ROIIC % is 2.21. Taiwan Semiconductor Manufacturing Co's value of 43.38 is 1862.9% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #110 out of 918 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 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's 5-Year ROIIC % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #110 out of 918 companies for 5-Year ROIIC %. This places Taiwan Semiconductor Manufacturing Co in the top 12% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 2.21. Taiwan Semiconductor Manufacturing Co's value of 43.38 is 1862.9% 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 5-Year ROIIC % for a Semiconductors company?
The median 5-Year ROIIC % among Semiconductors companies is 2.21, based on 918 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current 5-Year ROIIC % of 43.38 is 1862.9% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median 5-Year ROIIC % is 2.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current 5-Year ROIIC % is 43.38. 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 5-Year ROIIC % is 43.38 and 1862.9% above the Semiconductors industry median of 2.21. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (MEX:TSMN), the current 5-Year ROIIC % is 43.38 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 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:
5-Year ROIIC %: 43.38
GF Value™: MXN5,298.30 vs. price of MXN7,563.78 (42.8% above fair value)
Industry Position: 1862.9% above the Semiconductors median (#110 of 918)
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
Get the complete analysis for MEX:TSMN
5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:TSMN has been successfully added to your 
