AlphaMadera's AlphaVal page computes Taiwan Semiconductor Manufacturing Company Limited's fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag TSM as undervalued, fairly valued, or overvalued.

How does AlphaMadera value TSM?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from TSM's most recent reported fundamentals.

TSM - Taiwan Semiconductor Manufacturing Company Limited

Q: What is Taiwan Semiconductor Manufacturing Company Limited's fair value?

Fair value for TSM is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $566.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 80% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Moderate

Trading 25.4% below fair value

Current Price $420.39

Bear Case $272.19 35.3% downside ($272.19 - $420.39) / $420.39 = -35.3% 15% stage 1 growth, 11% discount

Fair Value $563.42 34.0% upside ($563.42 - $420.39) / $420.39 = 34.0% 25% stage 1 growth, 11% discount

Bull Case $972.85 131.4% upside ($972.85 - $420.39) / $420.39 = 131.4% 32% stage 1 growth, 11% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

25.0%

Discount Rate (WACC)

11.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (25% base case)

Terminal Value % of EV 49%

Implied Market Multiple 49.4x

Market is pricing in (growth) 21.0% vs our 25.0% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $566.00 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $563.42 per share.

Warnings

ℹ Financial statements were converted from TWD into USD using USDTWD at 0.0311 USD per TWD.

Key Risks

P/E alone misleads — earnings depressed by growth investment
Cyclical or commodity businesses may be misclassified as platforms
Terminal value dominance suggests sensitivity to long-run assumptions