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TSM's Shiller PE Ratio is ranked worse than 65.75% of 543
companies
in the Semiconductors industry
Industry Median: 41.31
vs TSM: 66.58
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Taiwan Semiconductor Manufacturing Co's adjusted earnings per share data for the three months ended in Jun. 2026 was $4.309. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $7.17 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Taiwan Semiconductor Manufacturing Co Shiller PE Ratio Related Terms
Taiwan Semiconductor Manufacturing Co Shiller PE Ratio 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 Shiller PE Ratio Chart
TSM vs NVDA, AVGO, MU: Shiller PE Ratio Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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 Shiller PE Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio falls into.
Taiwan Semiconductor Manufacturing Co Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Taiwan Semiconductor Manufacturing Co (TSM) has a Shiller PE Ratio of 59.82 as of Sep. 07, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 99% above median its historical median of 30.03. Over the past decade, Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio has ranged from 21.51 to 71.98. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #357 out of 543 companies in the Semiconductors industry, placing it in the top 65.7%.
Is Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio too high?
Taiwan Semiconductor Manufacturing Co's current Shiller PE Ratio of 59.82 is 99% above median its 10-year median of 30.03. Over the past 10 years, this metric has ranged from a low of 21.51 to a high of 71.98. The Semiconductors industry median Shiller PE Ratio is 41.31. Taiwan Semiconductor Manufacturing Co's value of 59.82 is 44.8% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #357 out of 543 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 98/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's Shiller PE Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #357 out of 543 companies for Shiller PE Ratio. This places Taiwan Semiconductor Manufacturing Co in the lower half of its industry. The industry median Shiller PE Ratio is 41.31. Taiwan Semiconductor Manufacturing Co's value of 59.82 is 44.8% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own Shiller PE Ratio has ranged from 21.51 to 71.98 over the past decade. While the company's 10-year median is 30.03 vs. the industry median of 41.31, 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 Shiller PE Ratio for a Semiconductors company?
The median Shiller PE Ratio among Semiconductors companies is 41.31, based on 543 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current Shiller PE Ratio of 59.82 is 44.8% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median Shiller PE Ratio is 41.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current Shiller PE Ratio is 59.82, which is 99% above median its own 10-year median of 30.03. 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 Modestly Overvalued. The stock's GF Value™ is $359.38, compared to a current price of $428.91 — trading 19.3% above its estimated fair value. The current Shiller PE Ratio is 59.82, which is 99% above median its 10-year median of 30.03 and 44.8% above the Semiconductors industry median of 41.31. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 98/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current Shiller PE Ratio is 59.82 as of Sep. 07, 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 $428.91 is trading 19.3% above its estimated GF Value™ of $359.38.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSM:
Shiller PE Ratio: 59.82 (99% above median its 10-year median of 30.03)
GF Value™: $359.38 vs. price of $428.91 (19.3% above fair value)
Industry Position: 44.8% above the Semiconductors median (#357 of 543)
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. 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.
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