Last Price$173.0(4.2%)
Market Cap$917.5B
DCF value
N/A
Overvalued (DCF value)
(100.0%)
Discount Rate
10.4%
Long-Term Growth Rate
4.0%
Stock quality
8/10
Great
TSM DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Dec'20 Actual | Dec'21 Actual | Dec'22 Actual | Dec'23 Actual | Dec'24 Actual | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Estimate | Dec'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 1,339,238.4 25.2% | 1,587,415.0 18.5% | 2,263,891.3 42.6% | 2,161,735.8 (4.5%) | 2,894,308.0 33.9% | 3,709,051.5 28.1% | 4,384,813.1 18.2% | 5,280,217.3 20.4% | 5,480,566.9 3.8% | 6,601,309.0 20.4% | 7,770,256.7 17.7% | 8,933,173.1 15.0% | 10,025,225.9 12.2% | 10,975,930.8 9.5% | 11,715,880.1 6.7% | 12,184,515.3 4.0% |
% margin | 566,783.7 42.3% | 649,980.9 40.9% | 1,121,278.9 49.5% | 921,465.6 42.6% | 1,322,053.0 45.7% | 1,618,166.0 43.6% | 1,912,983.7 43.6% | 2,303,626.1 43.6% | 2,391,033.6 43.6% | 2,879,985.2 43.6% | 3,389,967.7 43.6% | 3,897,318.9 43.6% | 4,373,754.1 43.6% | 4,788,522.7 43.6% | 5,111,344.0 43.6% | 5,315,797.8 43.6% |
NOPAT % effective tax rate | 502,214.5 37.5% | 585,237.1 36.9% | 996,537.6 44.0% | 788,414.9 36.5% | 1,102,556.7 38.1% | 1,349,507.0 36.4% | 1,595,377.1 36.4% | 1,921,162.3 36.4% | 1,994,057.9 36.4% | 2,401,830.4 36.4% | 2,827,142.1 36.4% | 3,250,259.4 36.4% | 3,647,593.5 36.4% | 3,993,499.4 36.4% | 4,262,723.7 36.4% | 4,433,232.7 36.4% |
% of revenue | 331,724.7 24.8% | 422,394.9 26.6% | 437,254.3 19.3% | 532,190.9 24.6% | 662,796.0 22.9% | 826,289.5 22.3% | 976,833.2 22.3% | 1,176,308.2 22.3% | 1,220,941.4 22.3% | 1,470,616.4 22.3% | 1,731,030.5 22.3% | 1,990,100.9 22.3% | 2,233,384.5 22.3% | 2,445,179.2 22.3% | 2,610,022.5 22.3% | 2,714,423.5 22.3% |
% of revenue | (521,474.5) (38.9%) | (849,436.5) (53.5%) | (1,089,626.5) (48.1%) | (955,398.4) (44.2%) | (956,007.0) (33.0%) | (1,549,854.0) (41.8%) | (1,832,225.8) (41.8%) | (2,206,377.0) (41.8%) | (2,290,094.5) (41.8%) | (2,758,404.7) (41.8%) | (3,246,857.9) (41.8%) | (3,732,790.9) (41.8%) | (4,189,113.1) (41.8%) | (4,586,372.0) (41.8%) | (4,895,565.2) (41.8%) | (5,091,387.8) (41.8%) |
% of revenue | (28,336.7) (2.1%) | 132,466.4 8.3% | 122,508.6 5.4% | (56,852.0) (2.6%) | (53,939.0) (1.9%) | 11,348.1 0.3% | 13,415.6 0.3% | 16,155.2 0.3% | 16,768.2 0.3% | 20,197.1 0.3% | 23,773.6 0.3% | 27,331.6 0.3% | 30,672.9 0.3% | 33,581.6 0.3% | 35,845.5 0.3% | 37,279.3 0.3% |
Free Cash Flow to Firm (FCFF) % of revenue | 284,128.0 21.2% | 290,661.9 18.3% | 466,674.0 20.6% | 308,355.4 14.3% | 755,406.7 26.1% | 637,290.5 17.2% | 753,400.1 17.2% | 907,248.8 17.2% | 941,672.9 17.2% | 1,134,239.2 17.2% | 1,335,088.2 17.2% | 1,534,900.9 17.2% | 1,722,537.8 17.2% | 1,885,888.3 17.2% | 2,013,026.6 17.2% | 2,093,547.7 17.2% |
% of FCFF used in calculation | 83.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.95 | 0.86 | 0.78 | 0.71 | 0.64 | 0.58 | 0.53 | 0.48 | 0.43 | 0.39 | ||||||
Discounted FCFF (DFCFF) | 503,575.3 | 649,766.3 | 708,944.4 | 666,714.9 | 727,610.7 | 775,994.6 | 808,320.1 | 821,913.5 | 815,319.1 | 788,525.1 |
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TSM DCF Value
DCF Value Calculation
as of Mar 03, 2025
Sum of DFCFF
% share of EV
7,266.7B
36.1%
Terminal Value (TV)
32.9T
Discounted TV
% share of EV
12.9T
63.9%
Total Debt
N/A
N/A
Shares outstanding
5,304.6M
FX rate
N/A
N/A
100% overvalued
Equity Value Bridge
TSM DCF Financials
Revenue
NT$2,894.3B -> NT$11.7T
15.0% CAGR
Operating Income
NT$1,322.1B -> NT$5,111.3B
14.5% CAGR
FCFF
NT$755.4B -> NT$2,013.0B
10.3% CAGR
TSM DCF sensitivity
DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
9.0%
$0.0
$0.0
$0.0
$0.0
$0.0
9.5%
$0.0
$0.0
$0.0
$0.0
$0.0
10.4%
$0.0
$0.0
$0.0
$0.0
$0.0
10.5%
$0.0
$0.0
$0.0
$0.0
$0.0
11.0%
$0.0
$0.0
$0.0
$0.0
$0.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
9.0%
(100.0%)
(100.0%)
(100.0%)
(100.0%)
(100.0%)
9.5%
(100.0%)
(100.0%)
(100.0%)
(100.0%)
(100.0%)
10.4%
(100.0%)
(100.0%)
(100.0%)
(100.0%)
(100.0%)
10.5%
(100.0%)
(100.0%)
(100.0%)
(100.0%)
(100.0%)
11.0%
(100.0%)
(100.0%)
(100.0%)
(100.0%)
(100.0%)
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FAQ
What is Taiwan Semiconductor Manufacturing Company Limited DCF (discounted cash flow) valuation?
As of Mar 03, 2025, Taiwan Semiconductor Manufacturing Company Limited's Discounted Cash Flow (DCF) valuation estimates its share price at N/A. This suggests it may be overvalued by (100.0%) compared to its current price of around $173.0, using a WACC of 10.4% and growth rates of 4.0%.
What is Taiwan Semiconductor Manufacturing Company Limited WACC?
As of Mar 03, 2025, Taiwan Semiconductor Manufacturing Company Limited's Weighted Average Cost of Capital (WACC) is approximately 10.4%.
What is Taiwan Semiconductor Manufacturing Company Limited Enterprise Value?
As of Mar 03, 2025, Taiwan Semiconductor Manufacturing Company Limited's Enterprise Value (EV) is approximately NT$20.1T. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.