Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) intrinsic value & 10-year financials

Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) has a Graham intrinsic value of $225.87 per share. At $424.37 on Oct 26, 2026, the stock trades 88% above that value. Over the last 8 fiscal years revenue grew 15.1% a year to $88.3B, with an average return on invested capital of 27.7%.

Graham intrinsic value
$225.87
Share price (Oct 26, 2026)
$424.37
Price vs Graham value
88% above
Market cap
$2.2T
Revenue (FY2024)
$88.3B
Revenue growth (8-yr CAGR)
15.1%
ROIC (10-yr avg)
27.7%
Free cash flow (FY2024)
$26.5B

TSM 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2024 $88.3B $35.3B $6.80 $26.5B — 29.0%
FY2023 $70.6B $27.8B $5.35 $9.5B — 26.8%
FY2022 $73.7B $32.3B $6.25 $17.2B — 37.5%
FY2021 $57.2B $21.4B $4.10 $9.8B — 29.9%
FY2020 $47.7B $18.2B $3.50 $11.2B — 30.5%
FY2019 $35.8B $11.8B $2.30 $5.2B — 21.9%
FY2018 $33.7B $11.9B $2.30 $8.4B — 22.7%
FY2017 $33.0B $11.6B $2.25 $8.6B — 23.1%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD is a consistent compounder, expanding top-line revenue at 15.1% annually over the past decade.

TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD has earned high returns on invested capital, averaging 27.7% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $225.87 per share.

TSM stock: frequently asked questions

What is the intrinsic value of Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, TSM's intrinsic value is about $225.87 per share.

Is TSM stock undervalued?

At $424.37 (close on Oct 26, 2026), TSM trades 88% above its Graham value of $225.87. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Taiwan Semiconductor Manufacturing Co. Ltd. grown?

Revenue went from $33.0B in fiscal 2017 to $88.3B in fiscal 2024, a compound annual growth rate of 15.1%. Net income was $35.3B in fiscal 2024.

Does Taiwan Semiconductor Manufacturing Co. Ltd. generate free cash flow?

Taiwan Semiconductor Manufacturing Co. Ltd. generated $26.5B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2024. Free cash flow was positive in 8 of the last 8 reported years.

What is TSM's return on invested capital?

Average ROIC over the last 8 fiscal years was 27.7%, and average return on equity was 27.7%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this TSM data come from?

From Taiwan Semiconductor Manufacturing Co. Ltd.'s annual 10-K filings on SEC EDGAR, most recently filed Apr 16, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

Similar semiconductors & related devices stocks