Fundamental analysis TSM (Taiwan Semiconductor Manufacturing Company Limited)

Updated on 07/20/2026

We analyzed Taiwan Semiconductor Manufacturing stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 9/10, meaning high quality, and a P/FCF valuation multiple of 2.2×.

Sector: Semiconductors. Listing: US. Current price: 415.17 USD.

Lubin scoring methodology

Taiwan Semiconductor Manufacturing Company Limited (TSM)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Bettin-Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The 10 quantitative criteria analyzed

1. Profitable: positive net margin
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Cash profitability: free cash flow margin > 10% of revenue
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Bettin-Mauboussin Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Frequently asked questions

Is Taiwan Semiconductor Manufacturing a quality stock?

Taiwan Semiconductor Manufacturing gets a quality score of 9/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Taiwan Semiconductor Manufacturing's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Taiwan Semiconductor Manufacturing's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Taiwan Semiconductor Manufacturing stock is 2.2×. At Lubin Investment, valuation is judged separately from quality.

Where to see Taiwan Semiconductor Manufacturing's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/TSM?lng=en.

Articles about Taiwan Semiconductor Manufacturing

• Taiwan Semiconductor (TSM): Q2 2026 results, my verdict (2026-07-16)
• TSMC (TSM): cheap stock or too risky? (2026-06-22)

Other stocks in the Semiconductors sector

• NVIDIA (NVDA) — score 9/10, P/FCF 44.2×
• Rambus (RMBS) — score 9/10, P/FCF 55.9×
• Cirrus Logic (CRUS) — score 9/10, P/FCF 15.0×
• Monolithic Power Systems (MPWR) — score 9/10, P/FCF 175.9×
• Taiwan Semiconductor Manufacturing (2330.TW) — score 9/10, P/FCF 61.8×

Go further

👉 See the full interactive analysis of TSM

Other resources : Detailed methodology · All stocks in the Semiconductors sector · Stocks rated 10 out of 10 · Top quality companies · Lubin Investment pricing.