Taiwan Semiconductor Manufacturing Company LimitedOpportunity Rank #45(TSM) Intrinsic Value & DCF Analysis (2026)
Current Price
$467.67
Last updated: Jun 23, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-06-22
The intrinsic value of Taiwan Semiconductor Manufacturing Company Limited (TSM) is estimated at $418.68 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $467.67, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 6.68% long-term growth rate and a 9.66% discount rate, reflecting expected future free cash flow and cost of capital.
The intrinsic value of Taiwan Semiconductor Manufacturing Company Limited (TSM) is estimated at $418.68 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $467.67, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 6.68% long-term growth rate and a 9.66% discount rate, reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Price moving to at least a mid-teens discount to fair value.
- ROIC staying above the cost of capital over coming quarters.
- Meaningful shifts in the narrative score direction.
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Taiwan Semiconductor Manufacturing Company Limited's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Taiwan Semiconductor Manufacturing Company LimitedTechnology
Taiwan Semiconductor Manufacturing Company Limited (TSMC), along with its affiliated entities, operates globally in the semiconductor industry, specializing in the manufacturing, packaging, meticulous testing, and worldwide distribution of integrated circuits and other crucial semiconductor components. Its expansive international presence covers key markets such as Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company is renowned for its diverse array of wafer fabrication processes. These capabilities enable the production of various advanced semiconductor types, including complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal devices, radio frequency components, embedded memory, and bipolar CMOS mixed-signal circuits. Beyond its core foundry services, TSMC extends its offerings to include dedicated customer and engineering support. It also undertakes the production of specialized masks, actively invests in burgeoning technology startups, and manages the entire lifecycle—from research and development through to manufacturing, packaging, testing, and sales—of color filters. Furthermore, the company provides a range of investment services. TSMC's cutting-edge products are indispensable across numerous sectors, powering high-performance computing, modern smartphones, Internet of Things (IoT) ecosystems, sophisticated automotive systems, and a broad spectrum of digital consumer electronics. Established in 1987, the enterprise is officially headquartered in Hsinchu City, Taiwan.