Taiwan Semiconductor Manufacturing Company Limited (TSM) Margin Analysis - Discounting Cash Flows
  • Enter your search keyword...
TSM
Taiwan Semiconductor Manufacturing Company Limited
TSM (NYSE)
  • Models

  • Taiwan Semiconductor Manufacturing Company Limited Margin Analysis

Years and Quarters

Years

Years

The number of historical years used to render the annual chart and tables.
Quarters

Quarters

The number of historical quarters used to render the quarterly chart and tables.

Margin Analysis Report

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.

Annual Section

The annual section uses annual data to calculate margins and growth rates.

Income Statement Margins

Monetary values in USD

amounts except #

LTM
Mar 11 		2025
Dec 31 		2024
Dec 31 		2023
Dec 31 		2022
Dec 31
Revenue 120,025 122,633 88,143 70,416 73,850
Revenue Growth Rate -2.13% 39.13% 25.17% -4.65% 28.96%
Cost of Revenue 48,133 49,186 38,675 32,138 29,866
Gross Profit 71,892 73,446 49,468 38,278 43,985
Gross Margin 59.9% 59.89% 56.12% 54.36% 59.56%
Operating Income 60,982 62,318 40,262 30,016 36,577
Operating Margin 50.81% 50.82% 45.68% 42.63% 49.53%
Net Income 54,142 55,307 35,277 27,745 32,390
Net Margin 45.11% 45.1% 40.02% 39.4% 43.86%

Cash Flow Statement Margins

Monetary values in USD

amounts except #

LTM
Mar 11 		2025
Dec 31 		2024
Dec 31 		2023
Dec 31 		2022
Dec 31
Revenue 120,025 122,633 88,143 70,416 73,850
Cash from Operating Activities 72,010 75,940 55,614 40,456 52,539
Cash from Operating Activities Margin 60% 61.92% 63.1% 57.45% 71.14%
Free Cash Flow 32,051 34,975 26,500 9,335 16,995
Free Cash Flow Margin 26.7% 28.52% 30.06% 13.26% 23.01%
Depreciation and Amortization 16,170 22,153 20,185 17,336 14,264
Depreciation and Amortization Margin 13.47% 18.06% 22.9% 24.62% 19.31%
Capital Expenditure -39,959 -40,965 -29,114 -31,121 -35,545
Capital Expenditure Margin -33.29% -33.4% -33.03% -44.2% -48.13%

Annual Chart

Monetary values in USD

Quarterly Section

The quarterly section uses quarterly data to calculate margins and growth rates.

Income Statement Margins

Monetary values in USD

amounts except #

2025 (Q4)
Dec 31 		2025 (Q3)
Sep 30 		2025 (Q2)
Jun 30 		2025 (Q1)
Mar 31 		2024 (Q4)
Dec 31 		2024 (Q3)
Sep 30 		2024 (Q2)
Jun 30 		2024 (Q1)
Mar 31 		2023 (Q4)
Dec 31
Revenue 33,649 32,460 32,017 25,225 26,448 23,892
Revenue Growth Rate 3.66% 1.39% 26.93% -4.63% 10.7%
Cost of Revenue 12,677 13,161 13,249 10,395 10,844 10,075
Gross Profit 20,972 19,299 18,768 14,829 15,604 13,817
Gross Margin 62.33% 59.45% 58.62% 58.79% 59% 57.83%
Operating Income 18,135 16,418 15,889 12,235 12,965 11,346
Operating Margin 53.9% 50.58% 49.63% 48.51% 49.02% 47.49%
Net Income 16,268 14,831 13,656 10,867 10,957 10,229
Net Margin 48.35% 45.69% 42.65% 43.08% 41.43% 42.81%

Cash Flow Statement Margins

Monetary values in USD

amounts except #

2025 (Q4)
Dec 31 		2025 (Q3)
Sep 30 		2025 (Q2)
Jun 30 		2025 (Q1)
Mar 31 		2024 (Q4)
Dec 31 		2024 (Q3)
Sep 30 		2024 (Q2)
Jun 30 		2024 (Q1)
Mar 31 		2023 (Q4)
Dec 31
Revenue 33,649 32,460 32,017 25,225 26,448 23,892
Cash from Operating Activities 23,635 13,996 17,043 18,802 18,888 12,328
Cash from Operating Activities Margin 70.24% 43.12% 53.23% 74.54% 71.41% 51.6%
Free Cash Flow 12,369 4,570 6,772 8,859 7,865 5,789
Free Cash Flow Margin 36.76% 14.08% 21.15% 35.12% 29.74% 24.23%
Depreciation and Amortization 5,215 5,338 6,448 0 5,189 5,291
Depreciation and Amortization Margin 15.5% 16.44% 20.14% 0% 19.62% 22.14%
Capital Expenditure -11,266 -9,426 -10,271 -9,943 -11,023 -6,538
Capital Expenditure Margin -33.48% -29.04% -32.08% -39.42% -41.68% -27.37%

Quarterly Chart

Monetary values in USD

Share Model

You need to login first in order to share valuations.

Delete Shared Valuation

Are you sure you want to delete your shared valuation with id ?

Intrinsic Valuation
An intrinsic valuation model calculates a value per share by using company intrinsic data and will not be influenced by market price or any pricing multiples.

Discounted Cash Flow to Firm - Perpetual Growth

Discounted Cash Flow to Firm - Perpetual Growth

This model estimates the fair value of a share by discounting projected Free Cash Flow to the Firm (FCFF), also known as Unlevered Free Cash Flow.

The terminal value assumes cashflow grows at a constant Growth in Perpetuity rate forever.

Learn more: Prof. Aswath Damodaran's Guide to Discounted Cash Flow Valuation

Earnings Power Value

Earnings Power Value

This model is only available with a paid subscription plan.

Earnings power value is a method of valuing the stocks of a company, assuming that the current earnings are sustainable, and there is no future growth.

The model was developed by Columbia University Professor Bruce Greenwald, a renowned financial economist and value investor who, through this valuation technique, tries to overcome the main challenge in discounted cash flow (DCF) analysis related to making assumptions about future growth, cost of capital, profit margins, and required investments.

Simple Dividend Discount Model

Simple Dividend Discount Model

This model estimates the value of companies that have reached maturity and pay stable dividends as a significant percentage of their free cash flow to equity, with no share buybacks or high growth expectancy.

Learn more: Prof. Aswath Damodaran's Guide to Dividend Discount Models

Simple Excess Return Model

Simple Excess Return Model

This model is used to estimate the value of companies that have reached maturity and earn stable excess returns with little to no chance of high growth.

Note: Excess return models are better suited for estimating the fair value of financial companies compared to enterprise valuation models, such as the Discounted Free Cash Flow Model.

See Valuing Financial Service Firms

Two-Stage Dividend Discount Model

Two-Stage Dividend Discount Model

This model is only available with a paid subscription plan.

This model is designed to value the equity in a firm, with two stages of growth.

  1. An initial period of high growth, represented by the Sum of discounted dividends.
  2. A subsequent period of stable growth, represented by the Discounted terminal value per share.

Learn more: Prof. Aswath Damodaran's Guide to Dividend Discount Models

Two-Stage Excess Return Model

Two-Stage Excess Return Model

This model is only available with a paid subscription plan.

This model is used to estimate the value of companies based on two stages of growth:

  1. An initial period of high growth, represented by the Sum of discounted excess returns.
  2. A subsequent period of stable growth, represented by the Discounted terminal value.

Note: Excess return models are better suited for estimating the fair value of financial companies compared to enterprise valuation models, such as the Discounted Free Cash Flow Model.

See Valuing Financial Service Firms
Multiples Valuation
A multiples valuation model combines both company intrinsic data and market price multiples.

Discounted Cash Flow to Firm - Exit Multiple

Discounted Cash Flow to Firm - Exit Multiple

This model estimates the fair value of a share by discounting projected Free Cash Flow to the Firm (FCFF), also known as Unlevered Free Cash Flow.

The Exit EV/EBITDA Multiple is applied to the company’s projected EBITDA in the final forecast year to estimate the terminal Enterprise Value (EV).

Learn more: Prof. Aswath Damodaran's Guide to Discounted Cash Flow Valuation

Discounted Future Market Cap

Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the future market capitalization using the estimated P/E ratio, then discounting it to the present using an annual required rate of return (referred to as the discount rate).

Peter Lynch Fair Value

Peter Lynch Fair Value

This model is only available with a paid subscription plan.

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10% and 20% a year.

It is computed by multiplying PEG Ratio, which according to Peter Lynch should always equal to 1 (so it can be ignored), EPS LTM, and Earnings Growth Rate. The resulting model value shows whether the company is currently trading at its fair value or not.
Risk Analysis
A risk analysis model provides information about the level of risk in a company, the cost of capital, liquidity ratios, margins and other risk related ratios.

Altman Z-Score

Altman Z-Score

This model is only available with a paid subscription plan.

The Altman Z-score is a formula for determining whether a company, notably in the manufacturing space, is headed for bankruptcy.

Read more: Altman’s Z-Score Model

Beneish M-Score

Beneish M-Score

This model is only available with a paid subscription plan.

Beneish’s M-Score is a mathematical model that uses eight financial ratios weighted by coefficients to identify whether a company has manipulated its profits.

Read more: Beneish M-Score

Capital Asset Pricing Model (CAPM)

Capital Asset Pricing Model (CAPM)

The Capital Asset Pricing Model describes the relationship between risk and expected return for assets, particularly stocks. Its formula is used to calculate the cost of equity, or the rate of return a company is expected to pay to equity investors.

Margin Analysis

Margin Analysis

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.

Piotroski F-Score

Piotroski F-Score

This model is only available with a paid subscription plan.

The Piotroski score, also known as the Piotroski F-score, is a discrete score that ranges from 0 to 9 and reflects nine criteria that are used to gauge the strength of a firm’s financial position.

Read more: Understanding Piotroski Score

Return on Invested Capital (ROIC)

Return on Invested Capital (ROIC)

The return on capital or invested capital in a business attempts to measure the return earned on capital invested in an investment.

Read more on Aswath Damodaran - Return Measures PDF

Shiller PE (CAPE) Ratio

Shiller PE (CAPE) Ratio

This model is only available with a paid subscription plan.

The CAPE Ratio (also known as the Shiller P/E or PE 10 Ratio) is an acronym for the Cyclically-Adjusted Price-to-Earnings Ratio.

Read more about the CAPE Ratio

Weighted Average Cost of Capital (WACC)

Weighted Average Cost of Capital (WACC)

WACC is a financial metric that helps in calculating a firm’s cost of financing by combining the cost of debt and cost of equity structure together.

Read more: Understanding WACC

Deprecated Link

Loading Data

AI Insights

What are AI Insights?

AI Insights help you understand your data more easily. With just a click, the assistant looks at the current page, generates a report with key metrics, and highlights any interesting trends, patterns, or outliers. You can also ask the assistant follow-up questions.

Create a Free Account
AI Insights Example

Delete Model

Are you sure you want to delete your model? All associated code will be permanently lost.

discounting cash flows home logo

Discounting Cash Flows

Are you finding our services helpful? Review us on trustpilot logo Trustpilot
Have a question? Contact us
Want to become our sponsor?
Check out our Affiliate Program

Ready to Leave?

Select "Logout" below if you are ready to end your current session.