Using the industry peer median P/E multiple (trailing + forward), Taiwan Semiconductor Manufacturing Company Limited (TSM) has a fair value of $418.30 based on 8 comparable companies in the Semiconductors industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Taiwan Semiconductor Manufacturing Company LimitedTSM | 1,691,272 | 31.4x | 32.5x |
| NVIDIA CorporationNVDA | 4,342,817 | 36.5x | 21.6x |
| Broadcom Inc.AVGO | 1,473,517 | 65.2x | 27.7x |
| Micron Technology, Inc.MU | 430,894 | 50.3x | 6.9x |
| Advanced Micro Devices, Inc.AMD | 359,130 | 83.1x | 32.5x |
| Applied Materials, Inc.AMAT | 270,054 | 39.3x | 36.3x |
| Lam Research CorporationLRCX | 266,600 | 51.4x | 53.2x |
| KLA CorporationKLAC | 192,316 | 48.2x | 40.0x |
| Texas Instruments IncorporatedTXN | 177,859 | 35.8x | 30.4x |
| Industry Median | 49.3x | 31.4x | |
| (*) Profit after tax | 53,806 | 51,985 | |
| Equity Value | 2,650,920 | 1,687,808 | |
| (/) Outstanding shares | 5,186 | 5,186 | |
| Fair Price | $511 | $325 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.