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What is the ratio of TSMC?

Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated independent semiconductor foundry, and its financial ratios are key indicators of its performance and valuation. As of the latest data, TSMC's key financial ratios include:

  1. Price-to-Earnings (P/E) Ratio: This ratio measures the company's current share price relative to its per-share earnings. TSMC's P/E ratio is often compared to industry peers to assess whether the stock is overvalued or undervalued. As of recent data, TSMC's P/E ratio is approximately 18-20, reflecting its strong earnings and market position.

  2. Price-to-Book (P/B) Ratio: This ratio compares a company's market value to its book value. TSMC's P/B ratio is typically around 5-6, indicating that the market values the company significantly higher than its net asset value, which is common for high-growth tech companies.

  3. Debt-to-Equity (D/E) Ratio: This ratio indicates the relative proportion of shareholders' equity and debt used to finance a company's assets. TSMC maintains a low D/E ratio, often below 0.5, reflecting its strong balance sheet and minimal reliance on debt financing.

  4. Return on Equity (ROE): This ratio measures the profitability relative to shareholders' equity. TSMC's ROE is consistently high, often above 20%, showcasing its efficiency in generating profits from its equity base.

  5. Dividend Yield: This ratio shows how much a company pays out in dividends each year relative to its stock price. TSMC offers a modest dividend yield, typically around 2-3%, as it reinvests a significant portion of its earnings back into the business to fuel growth.

  6. Gross Margin: This ratio indicates the percentage of revenue that exceeds the cost of goods sold. TSMC's gross margin is usually around 50%, reflecting its strong pricing power and cost efficiency in semiconductor manufacturing.

  7. Operating Margin: This ratio measures the proportion of revenue left after paying for variable costs of production. TSMC's operating margin is typically around 40%, indicating strong operational efficiency.

  8. Net Profit Margin: This ratio shows the percentage of revenue that remains as profit after all expenses. TSMC's net profit margin is usually around 30%, reflecting its ability to convert a significant portion of revenue into profit.

These ratios are crucial for investors and analysts to evaluate TSMC's financial health, operational efficiency, and growth potential. Given TSMC's dominant position in the semiconductor industry, these ratios often serve as benchmarks for the sector. However, it's important to note that these ratios can fluctuate based on market conditions, company performance, and broader economic factors. For the most accurate and up-to-date information, it's advisable to refer to TSMC's latest financial statements and reports.

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Comments (45)

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Çankaya Guro 2025-03-30 19:22:47

TSMC's dominance in semiconductor manufacturing is truly impressive. Their advanced technology and high yield rates set them apart from competitors.

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Gagné Aurélien 2025-03-30 19:22:47

The article provides a great overview of TSMC's market position. However, it could delve deeper into their R&D strategies.

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Addy Marilde 2025-03-30 19:22:47

TSMC's ratio of production capacity is unmatched. They are the backbone of the global tech industry.

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Chow Armando 2025-03-30 19:22:47

I found the information about TSMC's market share very insightful. It's clear why they are a leader in the field.

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Sirko Gerardo 2025-03-30 19:22:47

The article is well-written but lacks some recent data on TSMC's expansion plans.

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Cherneckiy Avery 2025-03-30 19:22:47

TSMC's commitment to innovation is unparalleled. Their role in the semiconductor industry is critical.

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Soto Gül 2025-03-30 19:22:47

A good read, but I wish there were more details on TSMC's environmental impact and sustainability efforts.

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Lehr Amar 2025-03-30 19:22:47

TSMC's production efficiency is a game-changer. This article highlights their strengths well.

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Noriega Clara 2025-03-30 19:22:47

The piece could benefit from more comparisons with other foundries like Samsung or Intel.

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Martin Dulcinéia 2025-03-30 19:22:47

TSMC's technological advancements are mind-blowing. They are paving the way for future innovations.

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Sheikh Ronja 2025-03-30 19:22:47

I appreciate the focus on TSMC's market ratio, but some graphs or charts would make it even better.

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Mahinya Esperanza 2025-03-30 19:22:47

TSMC's consistency in delivering high-quality chips is remarkable. This article captures their essence perfectly.

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Simpson Avi 2025-03-30 19:22:47

The article is informative, but it feels a bit too technical for casual readers.

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Hall Nada 2025-03-30 19:22:47

TSMC's leadership in the semiconductor space is undeniable. This piece does justice to their achievements.

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Guillot Jesus 2025-03-30 19:22:47

A solid overview of TSMC, though it could use more insights into their customer relationships.

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Tarasenko Alolika 2025-03-30 19:22:47

TSMC's ability to scale production is awe-inspiring. They are a true industry giant.

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Morales Matias 2025-03-30 19:22:47

The article is decent, but it misses some key points about TSMC's challenges and competition.

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Jarvi Genaro 2025-03-30 19:22:47

TSMC's impact on the global supply chain is huge. This article sheds light on their importance.

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Bilovus Elisabeth 2025-03-30 19:22:47

I enjoyed reading about TSMC's market dominance. More case studies would be a great addition.

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Gutiérrez Florentien 2025-03-30 19:22:47

TSMC's innovation in chip manufacturing is second to none. This article highlights their strengths well.

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Mitchell یاسمن 2025-03-30 19:22:47

The piece is good, but it could explore TSMC's future prospects in more detail.

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Spasojević Asli 2025-03-30 19:22:47

TSMC's role in enabling modern technology cannot be overstated. A very informative read.

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Guillot Jesus 2025-03-30 19:22:47

The article provides a clear picture of TSMC's market position. However, it could be more engaging.

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Halko Fabien 2025-03-30 19:22:47

TSMC's efficiency and precision in manufacturing are unmatched. This article does them justice.