Taiwan Semiconductor Manufacturing CoTSM -4.25%93 5-Year Yield-on-Cost % is 1.52 as of Jul. 07, 2026, which is 62% below its 10-year median of 4.00. GuruFocus rates TSM with a GF Score™ of 93/100 and a GF Value™ of $304.47 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 531 Semiconductors companies, Taiwan Semiconductor Manufacturing Co ranks better than 62.34% on this metric.
TSM's 5-Year Yield-on-Cost % is ranked better than 62.34% of 531
companies
in the Semiconductors industry
Industry Median: 0.99
vs TSM: 1.52
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Taiwan Semiconductor Manufacturing Co 5-Year Yield-on-Cost % Related Terms
TSM vs NVDA, AVGO, MU: 5-Year Yield-on-Cost % Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 Yield-on-Cost % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's 5-Year Yield-on-Cost % falls into.
Taiwan Semiconductor Manufacturing Co 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Taiwan Semiconductor Manufacturing Co (TSM) has a 5-Year Yield-on-Cost % of 1.52 as of Jul. 07, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 62% below median its historical median of 4.00. Over the past decade, Taiwan Semiconductor Manufacturing Co's 5-Year Yield-on-Cost % has ranged from 1.43 to 10.26. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #200 out of 531 companies in the Semiconductors industry, placing it in the top 37.7%.
Is Taiwan Semiconductor Manufacturing Co's 5-Year Yield-on-Cost % too high?
Taiwan Semiconductor Manufacturing Co's current 5-Year Yield-on-Cost % of 1.52 is 62% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 1.43 to a high of 10.26. The Semiconductors industry median 5-Year Yield-on-Cost % is 0.99. Taiwan Semiconductor Manufacturing Co's value of 1.52 is 53.5% above this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #200 out of 531 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's 5-Year Yield-on-Cost % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #200 out of 531 companies for 5-Year Yield-on-Cost %. This puts Taiwan Semiconductor Manufacturing Co in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 0.99. Taiwan Semiconductor Manufacturing Co's value of 1.52 is 53.5% above this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own 5-Year Yield-on-Cost % has ranged from 1.43 to 10.26 over the past decade. While the company's 10-year median is 4.00 vs. the industry median of 0.99, 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 5-Year Yield-on-Cost % for a Semiconductors company?
The median 5-Year Yield-on-Cost % among Semiconductors companies is 0.99, based on 531 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % 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 Yield-on-Cost % of 1.52 is 53.5% 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 Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median 5-Year Yield-on-Cost % is 0.99 — 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 Yield-on-Cost % is 1.52, which is 62% below median its own 10-year median of 4.00. 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 Significantly Overvalued. The stock's GF Value™ is $304.47, compared to a current price of $432.57 — trading 42.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.52, which is 62% below median its 10-year median of 4.00 and 53.5% above the Semiconductors industry median of 0.99. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 93/100 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 Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current 5-Year Yield-on-Cost % is 1.52 as of Jul. 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 $432.57 is trading 42.1% above its estimated GF Value™ of $304.47.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for TSM:
5-Year Yield-on-Cost %: 1.52 (62% below median its 10-year median of 4.00)
GF Value™: $304.47 vs. price of $432.57 (42.1% above fair value)
Industry Position: 53.5% above the Semiconductors median (#200 of 531)
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 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.
93GF Score
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