Taiwan Semiconductor Manufacturing Company LimitedOpportunity Rank #16(TSM) Intrinsic Value & DCF Analysis (2026)
Current Price
$338.45
Last updated: Mar 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
The intrinsic value of Taiwan Semiconductor Manufacturing Company Limited (TSM) is estimated at $396.74 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $338.45, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.66% long-term growth rate and a 9.72% 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 $396.74 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $338.45, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.66% long-term growth rate and a 9.72% 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
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Confirm ROIC stays above cost of capital over coming quarters.
- Follow narrative trend for meaningful shifts in the 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, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also offers customer and engineering support services; manufactures masks; and invests in technology start-up companies; researches, designs, develops, manufactures, packages, tests, and sells color filters; and provides investment services. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.