Taiwan Semiconductor Stock Analysis, Valuation (NYSE:TSM)
Take a look at Amigobulls Taiwan Semiconductor stock analysis video. Our TSM analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Taiwan Semiconductor Mfg. Co. Ltd. (ADR) Stock Rating 3.6/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for TSM stock analysis. Taiwan Semiconductor valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Taiwan Semiconductor stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy TSM stock?
- LTM Net margins were good at 34.7% for Taiwan Semiconductor.
- The price to earnings multiple of 17.8 is attractive when compared with the sector average PE ratio of 25.4.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Taiwan Semiconductor at 23.9.
Should you sell TSM stock?
- Over the last 5 years, the company registered a poor revenue growth of 12.3.
- The company is trading at a price to sales multiple of 6.2, which is overvalued in comparison to the Computer and Technology sector average multiple of 2.9.
Investors can make use of the Amigobulls Taiwan Semiconductor stock analysis to ascertain how TSM stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Among the financials of the company, Taiwan Semiconductor revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about TSM stock.