Taiwan Semiconductor Co Ltd (5425) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Taiwan Semiconductor Co Ltd TWD 131, price TWD 95.70, upside +37.2%, quality 68 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Watch Taiwan Semiconductor Co Ltd for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card.Watch for freePro now: $1 first month
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range 32.69 TWD – 144.00 TWD · fair‑value band 98.46 TWD – 164.11 TWD · the 95.70 TWD price screens below the 131.28 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
Follow Taiwan Semiconductor Co in your weekly email
Every Wednesday you see whether Taiwan Semiconductor Co is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Taiwan Semiconductor Co., Ltd. manufactures and sells rectifiers and bar code printers in Asia, the United States, Europe, and internationally.
Show more
Taiwan Semiconductor Co., Ltd. manufactures and sells rectifiers and bar code printers in Asia, the United States, Europe, and internationally. It offers discrete devices, including schottky rectifier, bridge, standard rectifier, protection diode, MOSFETs, general purpose and low transistor, small signal products, such as zener, switching, and schottky diode. The company also provides amplifier & comparator; automotive voltage, linear voltage, and switching regulator; LED driver; voltage references; and magnetic sensors. It is also involved in customization of design, integration, and marketing of label papers and other parts; production and sales of handheld computers and their parts for enterprise; and research and development, and designing of handheld computers for enterprise use, and technical services. Its products are used in a range of applications in the automotive, power supply, computing, consumer, lighting, and telecom industry. The company was founded in 1968 and is headquartered in New Taipei City, Taiwan.
Stock analysis
Taiwan Semiconductor Co Ltd (5425) currently trades at 95.70 TWD, while our model-based Fair Value estimate is 131.28 TWD, implying the stock looks roughly 27.1% undervalued today.
Show more
Valuation
Bull case: the Growth DCF group reads highest at a median of 99.65 TWD per share, and 9 of the 26 models we run sit above the 95.70 TWD price.
Bear case: the Earnings-Based group reads lowest at 16.73 TWD, and 17 of the 26 models stay below the price. Evidence for this calculation is medium.
Scenario range: 98.46 TWD (bear) to 164.11 TWD (bull), the price of 95.70 TWD sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Technology sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Taiwan Semiconductor Co Ltd reported revenue of 18.0B TWD in FY2025 versus 13.2B TWD in FY2021, a compound +8.0%/yr. Reported net income was 510M TWD in FY2025, compounding −22.1%/yr from FY2021.
Key figures
Market cap 23.4B TWD (≈ $735M) · P/E ratio 46.2 · P/S ratio 1.31 · EPS (TTM) 2.07 TWD · Dividend yield 2.1% · Net margin 2.8% · Return on equity 10.4% · Return on assets (EBIT) 10.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 34% below its 52-week high and 88% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −41% fair-value upside, at 37%, 5425 screens cheaper than that median.
Fair Value models
Bear 98.46 TWDFair Value 131.28 TWDBull 164.11 TWD
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (0.0512 TWD per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.85/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+21.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.6%
Start year 2020 (pandemic). Over 10 years: +8.8% a year
Revenue growth 19 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.2%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years), in TWD ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−10.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year−12.7%
Dividend (yield on the price)2.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−13% vs −4%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 8%
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+8.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Taiwan: IMF forecast 1.6% a year to 2030, 1.5% from 2016 to 2025) that is about +6.3% a year for the price.
Compare Taiwan Semiconductor Co Ltd with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductors · 340 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside+37% · Top 25%
Profitability
Return on equity (TTM)10% · Above median
Return on assets4% · Above median
Net margin (TTM)3% · Below median
Operating margin (TTM)9% · Above median
Growth and dividend
Revenue growth−3% · Bottom 25%
Dividend yield (TTM)2.1% · Above median
Balance sheet
Debt / equity0.41× · Highest 25%
Valuation Multiplesvs Semiconductors median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Taiwan Semiconductor Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/5425
Frequently asked questions
Is Taiwan Semiconductor Co Ltd (5425) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of 131.28 TWD versus a price of 95.70 TWD, about +37% upside (undervalued).
What is the fair value of 5425?
Our model-based fair value for Taiwan Semiconductor Co Ltd is 131.28 TWD (as of Sep 24, 2026), built from audited fundamentals. The current price: 95.70 TWD.
What is the quality score of 5425?
Taiwan Semiconductor Co Ltd has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Taiwan Semiconductor Co Ltd (5425)?
Our model-based price target is the fair value of 131.28 TWD (as of Sep 24, 2026) from 26 valuation models. Cautious scenario 98.46 TWD, optimistic scenario 164.11 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Taiwan Semiconductor Co Ltd stock forecast for 2026?
Our models put fair value at 131.28 TWD, about +37% upside versus a price of 95.70 TWD (undervalued). Cautious scenario 98.46 TWD, optimistic scenario 164.11 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Taiwan Semiconductor Co Ltd (5425)?
Taiwan Semiconductor Co Ltd reported trailing-twelve-month revenue of about 17.8B TWD (latest available figure, as of Sep 24, 2026).
Does Taiwan Semiconductor Co Ltd pay a dividend?
Taiwan Semiconductor Co Ltd currently shows a dividend yield of about 2.09% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Taiwan Semiconductor Co Ltd (5425)?
For today's price to be fair in a discounted-cash-flow model, Taiwan Semiconductor Co Ltd would have to grow free cash flow by +8.0 % per year for five years (discount rate 12.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.6 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 5425 use?
Our models discount Taiwan Semiconductor Co Ltd at 12.6 %: a base by market capitalisation (small), damped by beta 1.29, country premium for Taiwan. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Taiwan Semiconductor Co Ltd that is +8.0 % per year a year over ten years, using the same discount rate (12.6 %) and the same formula as our fair value.
How much growth has Taiwan Semiconductor Co Ltd (5425) delivered so far?
Over the past 5 years revenue at Taiwan Semiconductor Co Ltd grew +11.6 % a year. The price currently implies +8.0 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Taiwan Semiconductor Co Ltd (5425) growing?
The median revenue growth in the sector is +8.2 % a year. That is the yardstick for the growth priced into Taiwan Semiconductor Co Ltd (+8.0 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Taiwan Semiconductor Co Ltd (5425)?
The free-cash-flow yield on the price is 8.17 %: that much free cash flow Taiwan Semiconductor Co Ltd produces per unit of market value. When it exceeds the discount rate of our models (12.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Taiwan Semiconductor Co Ltd (5425)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Taiwan Semiconductor Co Ltd it is 131.28 TWD per share (as of Sep 24, 2026), against a price of 95.70 TWD. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Taiwan Semiconductor Co Ltd stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 5425 trades below its calculated fair value: price 95.70 TWD, fair value 131.28 TWD, a gap of about +37% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 5425?
No. The price is what the market pays today (95.70 TWD); the fair value is what the company's own numbers justify (131.28 TWD). For Taiwan Semiconductor Co Ltd the two are 35.58 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Taiwan Semiconductor Co Ltd worth?
The market values Taiwan Semiconductor Co Ltd at about 23.4B TWD (market capitalisation, as of Sep 24, 2026). Per share that is 95.70 TWD; our models calculate a fair value of 131.28 TWD per share.
What do the bullish and bearish scenarios say about 5425?
Our models span a range for Taiwan Semiconductor Co Ltd: cautious scenario 98.46 TWD, base 131.28 TWD, optimistic 164.11 TWD per share (as of Sep 24, 2026, price 95.70 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 5425?
Taiwan Semiconductor Co Ltd trades at a price-to-earnings ratio of 46.2 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 131.28 TWD is built from several models across several years. Other multiples: P/B 3.1, P/S 1.3, EV/EBITDA 9.5.
How solid is the balance sheet of Taiwan Semiconductor Co Ltd (5425)?
Balance-sheet figures for Taiwan Semiconductor Co Ltd (as of Sep 24, 2026): return on equity 10.4%, debt of 0.41 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is 5425 from its 52-week high?
Taiwan Semiconductor Co Ltd trades at 95.70 TWD, about 34% below its 52-week high of 144.00 TWD and 88% above the low of 50.80 TWD (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of 131.28 TWD is for.
Which stocks are comparable to Taiwan Semiconductor Co Ltd?
From the same area (Technology) we also value NVIDIA Corporation, Broadcom Inc, SK hynix Inc, Micron Technology, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Taiwan Semiconductor Co Ltd stock attractive at the current price?
The data as of Sep 24, 2026: price 95.70 TWD, calculated fair value 131.28 TWD (+37%), Quality Score 68/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 5425 calculated?
We run Taiwan Semiconductor Co Ltd through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 131.28 TWD, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Taiwan Semiconductor Co Ltd currently trades 37 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Taiwan Semiconductor Co Ltd (5425)?
The closing price on Sep 23, 2026 was 95.70 TWD. Our model-based fair value is 131.28 TWD, about +37% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Taiwan Semiconductor Co Ltd right now?
The price is below even our cautious bear case (98.46 TWD). The market is more pessimistic than our downside scenario. Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Taiwan Semiconductor Co Ltd (5425) come from?
Earnings per share at Taiwan Semiconductor Co Ltd grew +15.3 % a year from 2012 to 2023. Broken into its drivers: revenue per share +8.1 %, EBIT margin +1.7 %, tax rate +2.3 %, residual (interest, one-offs) +2.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Taiwan Semiconductor Co Ltd
How large is the market capitalisation of Taiwan Semiconductor Co Ltd (5425)?
The market capitalisation of Taiwan Semiconductor Co Ltd is 23.4B TWD (≈ $735M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Taiwan Semiconductor Co Ltd (5425)?
The price-to-sales ratio of Taiwan Semiconductor Co Ltd is 1.31 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Taiwan Semiconductor Co Ltd (5425)?
Earnings per share at Taiwan Semiconductor Co Ltd are 2.07 TWD (price ÷ EPS = P/E 46.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Taiwan Semiconductor Co Ltd (5425)?
The dividend yield of Taiwan Semiconductor Co Ltd is 2.1% (payout 96.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Taiwan Semiconductor Co Ltd (5425)?
The net margin of Taiwan Semiconductor Co Ltd is 2.8% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Taiwan Semiconductor Co Ltd (5425)?
The return on equity (ROE) of Taiwan Semiconductor Co Ltd is 10.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Taiwan Semiconductor Co Ltd (5425)?
On an EBIT basis the return on assets of Taiwan Semiconductor Co Ltd is 10.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Taiwan Semiconductor Co Ltd (5425)?
The operating margin of Taiwan Semiconductor Co Ltd is 8.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Taiwan Semiconductor Co Ltd (5425)?
Revenue at Taiwan Semiconductor Co Ltd is growing −2.6% versus a year earlier (3y avg +4.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Taiwan Semiconductor Co Ltd (5425)?
Earnings per share at Taiwan Semiconductor Co Ltd are growing +48.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Taiwan Semiconductor Co Ltd (5425) carry?
The net debt of Taiwan Semiconductor Co Ltd is 1.5B TWD (fiscal year 2025, ≈ 0.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Taiwan Semiconductor Co Ltd in the live analysis
One click puts Taiwan Semiconductor Co Ltd on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.
