TSMC Limited (TSM): Market Cap to Revenue Ratio

Symbol and logo of brand Taiwan Semiconductor Manufacturing Company (TSM)

Taiwan Semiconductor (TSM) relies on unique process technologies and a capital-intensive foundation, ensuring stable revenue through long-term contracts. Fluctuations in the P/S multiple reflect the price action, where the current metric equals 13.40. Leadership in the Foundry segment allows the company to rapidly recoup the costs of expensive fabrication plants through sheer volume. Meanwhile, production stability depends on reliable alliances with lithography equipment suppliers.

P/S Multiple: TSMC Limited (TSM) for 07/04/2022 - 11/13/2026

Analytical breakdowns for Taiwan Semiconductor Manufacturing (TSM)

- stock value and consensus price forecast:
Summary company analytics:tsmc.com
Signature product of Taiwan Semiconductor

The multiple is calculated as the ratio of Taiwan Semiconductor (TSM) market capitalization to its total sales volume, determining the value of each dollar of revenue in the eyes of investors. Analyzing the current price-to-sales ratio allows for an assessment of the asset's overvaluation, given that the dominant contract manufacturing ecosystem and high customer dependence on the company's process technologies justify the premium status of its market value.