Taiwan Semiconductor Manufacturing Company Limited (TSM) Discounted Future Market Cap - Discounting Cash Flows
TSM
Taiwan Semiconductor Manufacturing Company Limited
TSM (NYSE)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the Future Market Capitalization using the estimated PE Ratio and then discounting it to the Present using an Annual Required Rate of Return.

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

Pe Ratio

Price to Earnings (PE) Ratio

Estimated Price to Earnings (PE) Ratio at the end of the projection period.

Future Market Cap = PE Ratio * Projected Net Income

Revenue Growth Rate

Revenue Growth Rate

The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.

Net Income Margin

Net Income Margin

Net Income expressed as a percentage of Revenue.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

Projection Years

Projection Years

The number of years for projecting the analysis into the future.

Results

Present Value 185.8 USD
Estimated net income 58.24 Bil. USD
Estimated market capitalization 1,563 Bil. USD
Market capitalization discounted to present 963.7 Bil. USD
Shares Outstanding 5.19 Bil.
Earnings Per Share (EPS) 8.75 USD
Market Price 234.8 USD
Price to Earnings (PE) Ratio 21.59

Historical and forecasted data

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Revenue 88,143 108,814 87,411 100,776 116,185 133,949 154,430
Revenue Growth Rate 25.17% 23.45% -0.831% 15.29% 15.29% 15.29% 15.29%
Net Income 35,731 45,361 32,963 38,003 43,813 50,512 58,236

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 54,840 108,814 88,143 70,416 73,850 57,264 47,613 35,770 33,726 32,891 29,177 25,575
Cost of Revenue 25,248 46,342 38,675 32,138 29,866 27,700 22,331 19,299 17,445 16,240 14,561 13,132
Gross Profit 29,592 62,472 49,468 38,278 43,985 29,564 25,282 16,471 16,280 16,651 14,615 12,443
Gross Margin 52.35% 57.41% 56.12% 54.36% 59.56% 51.63% 53.1% 46.05% 48.27% 50.62% 50.09% 48.65%
Operating Income 23,731 51,277 40,262 30,016 36,577 23,447 20,150 12,459 12,544 12,974 11,634 9,704
Operating Margin 41.59% 47.12% 45.68% 42.63% 49.53% 40.95% 42.32% 34.83% 37.2% 39.45% 39.87% 37.94%
Net Income 21,366 45,361 35,731 27,313 32,390 21,369 18,158 11,832 11,872 11,609 10,210 9,182
Net Margin 37.71% 41.69% 40.54% 38.79% 43.86% 37.32% 38.14% 33.08% 35.2% 35.3% 34.99% 35.9%

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 54,840 108,814 88,143 70,416 73,850 57,264 47,613 35,770 33,726 32,891 29,177 25,575
Revenue Growth Rate 15.29% 23.45% 25.17% -4.65% 28.96% 20.27% 33.11% 6.06% 2.54% 12.73% 14.08% 6.43%
Net Income 21,366 45,361 35,731 27,313 32,390 21,369 18,158 11,832 11,872 11,609 10,210 9,182
Net Margin 37.71% 41.69% 40.54% 38.79% 43.86% 37.32% 38.14% 33.08% 35.2% 35.3% 34.99% 35.9%
Net Income Growth Rate 18.75% 26.95% 30.82% -15.67% 51.58% 17.68% 53.46% -0.331% 2.26% 13.7% 11.19% 14.63%
Stockholders Equity 78,337 138,307 130,603 112,671 96,090 78,219 65,759 54,204 54,832 51,217 42,761 37,041
Equity Growth Rate 14.16% 5.9% 15.92% 17.26% 22.85% 18.95% 21.32% -1.15% 7.06% 19.78% 15.44% 12.47%
Return on Invested Capital (ROIC) 32.46% 46.93% 33.41% 25% 36.36% 30.26% 33.39% 27.77% 29.9% 31.1% 31.64% 31.33%
After-tax Operating Income 20,435 42,740 33,577 25,681 31,757 20,966 17,609 11,314 11,458 11,300 10,002 8,385
Income Tax Rate 12.95% 16.65% 16.6% 14.44% 13.18% 10.58% 12.61% 9.19% 8.66% 12.9% 14.02% 13.59%
Invested Capital 61,585 91,082 100,492 102,718 87,350 69,299 52,737 40,740 38,317 36,334 31,610 26,760
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