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STOCK COMPARISON

Applied Materials vs Taiwan Semiconductor Manufacturing: Fair Value & Quality

Both stocks run through our valuation models. Here is how Applied Materials (AMAT) and Taiwan Semiconductor Manufacturing (TSM) compare, as of Sep 13, 2026.

As of Sep 13, 2026, Fair Value Calculator sees Taiwan Semiconductor Manufacturing as the more attractively valued of the two: Applied Materials trades at $456 versus a fair value of $366 (-20%), while Taiwan Semiconductor Manufacturing trades at $433 versus $477 (+10%).
Applied Materials
AMAT · USD · Information Technology
-20%
upside to fair value
overvalued
Price$456
Fair Value$366
Quality77/100
Taiwan Semiconductor Manufacturing
TSM · USD · Information Technology
+10%
upside to fair value
undervalued
Price$433
Fair Value$477
Quality78/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Applied MaterialsTaiwan Semiconductor Manufacturing
Valuation
56.2×P/E (TTM)37.3×
15.85×P/S (TTM)15.53×
22.53×P/B12.87×
49.5×EV/EBITDA21.1×
1.45×PEG1.01×
−19.8%Fair value upside+10.0%
0.4%Dividend yield0.9%
$1.91Dividend per share$3.71
Profitability
32%Operating margin60%
1.15×EBIT margin trend (5Y)1.20×
40%Return on equity40%
15%Return on assets19%
Growth
11%Revenue growth (YoY)36%
3.2%Avg. growth/yr (3Y)19.3%
10.5%Avg. growth/yr (5Y)23.5%
+21.6%Value creation/yr+28.6%
Balance & size
30.8×Interest coverage (EBIT/interest)158.1×
0.32×Debt / equity0.17×
$460BMarket cap$2.2T
healthyGrowth qualityexpensive

Taiwan Semiconductor Manufacturing leads: 1 to 15 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Applied Materialsof which business quality 74 · market factors 54 Taiwan Semiconductor Manufacturingof which business quality 74 · market factors 70
ProfitabilityMargins and returns on capital today
85
76
Quality GrowthAre margins and returns improving?
48
88
CashflowEarnings quality: real cash, not paper profit
70
69
Fin. StrengthBalance sheet, leverage, solvency risk
87
98
InvestmentDisciplined investing over empire-building
40
5
Low VolatilityCalm price path (market factor)
10
43
MomentumPrice trend over the last 3–12 months (market factor)
70
76
52W MomentumDistance to the 52-week high (market factor)
76
91
Net IssuanceBuybacks instead of dilution
100
82

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyApplied MaterialsPrice $456Taiwan Semiconductor ManufacturingPrice $433
DCF Models-58%below the price$190+2092%above the price$9,497
Earnings-Based-79%below the price$96.95+1242%above the price$5,813
Dividend Discount-93%below the price$33.30+301%above the price$1,737
Multiples-62%below the price$174+1638%above the price$7,530
Asset-Based-96%below the price$17.23+60%above the price$692
Growth DCF-63%below the price$168+1405%above the price$6,519
Economic Profit-76%below the price$110+937%above the price$4,495
Growth Earnings-58%below the price$190+2112%above the price$9,584
Minimum-96%below the price$17.23+60%above the price$692
Maximum-58%below the price$190+2112%above the price$9,584
Median-70%below the price$139+1323%above the price$6,166
Geometric mean-79%below the price$94.65+915%above the price$4,399

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Applied Materials: 26 of 26 models see the stock below the current price.

Taiwan Semiconductor Manufacturing: 0 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Applied Materials
Bear $208Fair Value $366Bull $495
$456 = current price (white tick)
Taiwan Semiconductor Manufacturing
Bear $258Fair Value $477Bull $634
$433 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Applied Materials · Information Technology

Quality score77 · Top 25%
Fair value upside-20% · above median

Taiwan Semiconductor Manufacturing · Information Technology

Quality score78 · Top 25%
Fair value upside+10% · above median

Bottom line

As of Sep 13, 2026, Fair Value Calculator sees Taiwan Semiconductor Manufacturing as the more attractively valued of the two: Applied Materials trades at $456 versus a fair value of $366 (-20%), while Taiwan Semiconductor Manufacturing trades at $433 versus $477 (+10%).

Taiwan Semiconductor Manufacturing has the higher quality score (78/100).

See the full analysis →
Applied Materials · Taiwan Semiconductor Manufacturing

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.