Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Taiwan Semiconductor Manufacturing Co's 10-Year RORE % for the quarter that ended in Mar. 2026 was 31.69%.
MEX:TSMN's 10-Year RORE % is ranked better than 80.1% of 608
companies
in the Semiconductors industry
Industry Median: 7.55
vs MEX:TSMN: 31.69
Taiwan Semiconductor Manufacturing Co (MEX:TSMN) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Taiwan Semiconductor Manufacturing Co 10-Year RORE % Related Terms
Taiwan Semiconductor Manufacturing Co 10-Year RORE % 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 10-Year RORE % Chart
MEX:TSMN vs NVDA, AVGO, MU: 10-Year RORE % Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's 10-Year RORE % 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.
In the calculation of 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.
Taiwan Semiconductor Manufacturing Co (MEX:TSMN) has a 10-Year RORE % of 31.69 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #121 out of 608 companies in the Semiconductors industry, placing it in the top 19.9%.
Is Taiwan Semiconductor Manufacturing Co's 10-Year RORE % too high?
Taiwan Semiconductor Manufacturing Co's current 10-Year RORE % is 31.69. The Semiconductors industry median 10-Year RORE % is 7.55. Taiwan Semiconductor Manufacturing Co's value of 31.69 is 319.7% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #121 out of 608 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 10-Year RORE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #121 out of 608 companies for 10-Year RORE %. This places Taiwan Semiconductor Manufacturing Co in the top 20% of its industry — outperforming the majority of peers. The industry median 10-Year RORE % is 7.55. Taiwan Semiconductor Manufacturing Co's value of 31.69 is 319.7% 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 10-Year RORE % for a Semiconductors company?
The median 10-Year RORE % among Semiconductors companies is 7.55, based on 608 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current 10-Year RORE % of 31.69 is 319.7% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median 10-Year RORE % is 7.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current 10-Year RORE % is 31.69. 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 10-Year RORE % is 31.69 and 319.7% above the Semiconductors industry median of 7.55. 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 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (MEX:TSMN), the current 10-Year RORE % is 31.69 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 (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:
10-Year RORE %: 31.69
GF Value™: MXN5,298.30 vs. price of MXN7,563.78 (42.8% above fair value)
Industry Position: 319.7% above the Semiconductors median (#121 of 608)
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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