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Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330

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Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
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Price: 2 165 TWD -0.69% Market Closed
Market Cap: NT$56.1T

EV/IC

10.4
Current
70%
More Expensive
vs 3-y average of 6.1

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
10.4
=
Enterprise Value
NT$50.4T
/
Invested Capital
NT$5.2T

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
10.4
=
Enterprise Value
NT$50.4T
/
Invested Capital
NT$5.2T

Valuation Scenarios

Taiwan Semiconductor Manufacturing Co Ltd is trading above its 3-year average

If EV/IC returns to its 3-Year Average (6.1), the stock would be worth NT$1 275.65 (41% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-89%
Maximum Upside
No Upside Scenarios
Average Downside
63%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 10.4 NT$2 165
0%
3-Year Average 6.1 NT$1 275.65
-41%
5-Year Average 6.1 NT$1 275.65
-41%
Industry Average 1.9 NT$406.03
-81%
Country Average 1.2 NT$247.85
-89%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
56.5T TWD 10.4 29.8
US
NVIDIA Corp
NASDAQ:NVDA
5.1T USD 36 40.7
US
Broadcom Inc
NASDAQ:AVGO
1.9T USD 13.2 79.1
US
Micron Technology Inc
NASDAQ:MU
584.8B USD 6.9 24.1
US
Advanced Micro Devices Inc
NASDAQ:AMD
549.5B USD 8.9 132.6
US
Intel Corp
NASDAQ:INTC
475.9B USD 2.9 -146.9
KR
SK Hynix Inc
KRX:000660
701.7T KRW 6.4 20.8
US
Texas Instruments Inc
NASDAQ:TXN
244.2B USD 9.1 47.6
UK
Arm Holdings PLC
NASDAQ:ARM
214.2B USD 33.6 278.5
US
Analog Devices Inc
NASDAQ:ADI
190.1B USD 4.6 72.1
US
Qualcomm Inc
NASDAQ:QCOM
167.5B USD 5.1 35.8

Market Distribution

Higher than 97% of companies in Taiwan
Percentile
97th
Based on 869 companies
97th percentile
10.4
Low
0 — 0.9
Typical Range
0.9 — 1.8
High
1.8 —
Distribution Statistics
Taiwan
Min 0
30th Percentile 0.9
Median 1.2
70th Percentile 1.8
Max 1 954.3

Taiwan Semiconductor Manufacturing Co Ltd
Glance View

In the heart of Asia's dynamic tech landscape stands Taiwan Semiconductor Manufacturing Co. Ltd., more commonly known as TSMC, a titan that has redefined how the world approaches semiconductor production. Born from Taiwan's burgeoning tech aspirations in 1987, TSMC emerged as a revolutionary force by embracing a business model unlike any before it: the pure-play foundry model. Rather than engaging in the traditional integrated device manufacturing, TSMC focused solely on fabricating semiconductors for its clientele, which included a diverse array of electronic device giants, from smartphone makers to automotive and industrial tech leaders. By harnessing cutting-edge technology and maintaining relentless dedication to R&D, TSMC became indispensable to its customers, transforming into the world's largest dedicated independent semiconductor foundry. What sets TSMC apart is its distinctive ability to produce high-performance chips at a scale and precision that few can rival. The company earns its revenue primarily by offering fabrication capabilities and comprehensive services—a meticulously orchestrated process where the amalgamation of customer's design blueprints and TSMC’s advanced manufacturing prowess brings microchips to life. With clients ranging from industry stalwarts like Apple, NVIDIA, and AMD to a host of nascent tech startups, TSMC thrives on its capacity to deliver everything from the most advanced 3nm chips to more mature node technologies. This versatility not only ensures a steady stream of revenue but also fortifies TSMC's niche as the linchpin of the semiconductor supply chain, steering the very heart of modern electronics.

Intrinsic Value
1 886.79 TWD
Overvaluation 13%
Intrinsic Value
Price NT$2 165
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