Taiwan Semiconductor Manufacturing Company, Limited is the world's third largest semiconductor manufacturer after Intel and Samsung and the world's largest independent contract manufacturer of semiconductor products. The company was founded in 1987. The headquarters and the main parts of the company are located in Hsinchu, Taiwan.
P/E ratio for TSMC (TSM)
P/E ratio as of March 2023 (TTM): 14.3
According to TSMC's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 14.2644. At the end of 2021 the company had a P/E ratio of 29.2.
P/E ratio history for TSMC from 2001 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2021 | 29.2 | -7.84% |
| 2020 | 31.7 | 18.5% |
| 2019 | 26.7 | 63.08% |
| 2018 | 16.4 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Intel INTC | 14.4 | 1.28% | 🇺🇸 USA |
 NVIDIA NVDA | 110 | 671.71% | 🇺🇸 USA |
 Texas Instruments TXN | 18.5 | 29.42% | 🇺🇸 USA |
 Analog Devices ADI | 28.2 | 97.72% | 🇺🇸 USA |
 Applied Materials AMAT | 16.1 | 12.54% | 🇺🇸 USA |
 Xilinx XLNX | N/A | N/A | 🇺🇸 USA |
 Tower Semiconductor TSEM | 16.8 | 17.82% | 🇮🇱 Israel |
 Altair Engineering
ALTR | -96.5 | -776.61% | 🇺🇸 USA |
 STMicroelectronics STM | 13.0 | -8.77% | 🇨🇭 Switzerland |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.