Stock fact sheet · data as of
Taiwan Semiconductor Manufacturing Company Limited (TSM): fair value, margin of safety and Wheel Score
Technology · Semiconductors · Taiwan · ADR · High Growth
Is TSM undervalued?
Taiwan Semiconductor Manufacturing Company Limited (TSM) closed at 430.00 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 1,402.70, which puts the price 69% below it. 6 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: DCF gives 129.55 while 10 Cap gives 6,180.42. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TSM under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for TSM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 129.55 | -70% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 693.94 | +61% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 869.68 | +102% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 380.10 | -12% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 930.80 | +116% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 6,180.42 | +1337% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 1,505.13 | +250% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 1,765.71 | +311% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 168.94 | -61% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 246.89 | -43% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 578.43 | +35% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TSM scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.7 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 27.0%, ROE 32.4%, ROA 21.9% - with debt at 0.20 times equity and a free-cash-flow yield of 1.8%.
The dividend yield is 0.98% with a payout ratio of 24% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Wafer [member] 86%, Other Products [member] 14% (fiscal year FY2025).
Institutional ownership scores 2/10, insider activity 10/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded Congressional buy was on 12 Aug 2026.
| Piotroski F-score | 8 / 9 | ROIC | 27.0% |
|---|---|---|---|
| GLS Moat | 8.7 / 10 | ROE | 32.4% |
| Debt / equity | 0.20 | ROA | 21.9% |
| Free-cash-flow yield | 1.8% | Payout ratio | 24% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 10 / 10 |
Wheel Score 95: Prime
TSM scores 95 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (18/20), the GLS moat (13/15), the option premium on offer (20/20) and how easily the stock trades (19/20).
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 579,386 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 15.0M shares a day on a market cap of $2.23T, with a beta of 1.38 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 69% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 13 / 15 | moat 8.7/10 | |
| Premium | 20 / 20 | implied volatility 39% | |
| Stability | 19 / 20 | 15.0M shares/day, $2230.2B cap, beta 1.38 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for TSM in the nightly calendar. The next ex-dividend date is 10 Dec 2026 (1.09 per share).
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Taiwan Semiconductor Manufacturing Company Limited by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AVGO Broadcom Inc. | 344.33 | 224.00 | -54% | 68Good | $1.64T |
| MU Micron Technology, Inc. | 931.24 | 1,610.41 | +42% | 90Prime | $1.05T |
| SKHY SK hynix Inc. | 147.55 | 208,519.79 | +100% | 83Prime | $1.05T |
| NVDA NVIDIA Corporation | 217.23 | 205.82 | -6% | 75Good | $5.24T |
| AMD Advanced Micro Devices, Inc. | 562.23 | 130.40 | -331% | 63Fair | $917.8B |
| ASML ASML Holding N.V. | 1,657.44 | 1,137.77 | -46% | 73Good | $638.8B |
| INTC Intel Corp. | 95.37 | 16.71 | -471% | 45Weak | $504.1B |
| LRCX Lam Research Corporation | 277.46 | 98.92 | -181% | 65Good | $347.2B |
| AMAT Applied Materials, Inc. | 430.01 | 256.36 | -68% | 65Good | $341.3B |
| ARM Arm Holdings plc American Depositary Shares | 244.79 | 32.80 | -646% | 58Fair | $261.4B |
| TXN Texas Instruments Incorporated | 280.65 | 87.17 | -222% | 62Fair | $256.3B |
| KLAC KLA Corporation | 174.46 | 71.16 | -145% | 65Good | $227.7B |
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Start free See the Sunday ScanQuestions about TSM
Is TSM undervalued right now?
By the GLS models, yes: at 430.00 the stock is 69% below the average fair value of 1,402.70 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TSM and what does it mean?
TSM scores 95 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TSM?
1,402.70 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Taiwan Semiconductor Manufacturing Company Limited report earnings next?
No upcoming earnings date is recorded for TSM in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does TSM have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 579,386 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.