What is TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM)'s PEG ratio?

TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM) has a PEG ratio of 0.23 (Potentially Undervalued), based on a PE ratio of 6.4 and expected EPS growth of 27.1% (5-Year EPS CAGR).

Is TSM undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.23, TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/TSM.

TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.23

PEG Ratio

0.23

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$417.52

TTM EPS

$65.47

P/E Ratio

6.38

Growth Rate

27.1%

5-Year EPS CAGR

Sector

Technology

Semiconductors

Calculated

8/31/2026

2:09:48 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

0.94

25th Percentile

0.82

75th Percentile

24.33

TSM PEG (0.23) vs Industry Median (0.94): 75% discount

Symbol	Company	PEG	P/E	Growth	vs TSM
NVDA	NVIDIA CORP	0.29	27.5	94.7%	+24%
MU	MICRON TECHNOLOGY INC	0.82	21.1	25.9%	+247%
AVGO	Broadcom Inc.	1.06	52.2	49.3%	+350%
AMD	ADVANCED MICRO DEVICES INC	24.33	119.7	4.9%	+10256%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on TSM

Compare with peers

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TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on TSM

Compare with peers

Explore