Taiwan Semiconductor Manufacturing Company Limited (TSM) Two-Stage Excess Return Model - Discounting Cash Flows
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.

Two-Stage Excess Return Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, represented by [Sum of discounted excess returns in Growth Stage], followed by a period of stable growth, represented by [Discounted excess return in terminal stage]. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

Read more: GitHub Documentation

Interactive Assumptions

Results

Estimated Value 131.6 USD
Book value of equity invested 26.67 USD
Sum of discounted excess returns in Growth Stage 23.2 USD
Terminal stage EPS 11.56 USD
Terminal stage Book Value 38.6 USD
Terminal stage Equity Cost 3.9 USD
Discounted excess return in terminal stage 81.69 USD
Excess Returns in the Terminal Stage 132.2 USD
Terminal Cost of Equity (the discount rate) 10.1%
Terminal year's excess return 7.67 USD
Average historical Return on Equity 29.96%
Average historical Payout Ratio 46.74%
Payout Ratio in stable stage 85.65%
Yield of the U.S. 10 Year Treasury Bond 4.3%

Historical and Forecasted Data

In USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 21.73 25.19 25.19 28.62 31.85 34.71 37.01
Ending Book Value 25.19 26.67 28.62 31.85 34.71 37.01 38.6
EPS 6.89 8.73 7.55 8.57 9.54 10.4 11.09
Return on Equity 31.71% 34.67% 29.96% 29.96% 29.96% 29.96% 29.96%
Dividend per Share 2.34 2.81 4.11 5.34 6.69 8.1 9.5
Payout Ratio 33.96% 32.19% 54.52% 62.3% 70.08% 77.87% 85.65%
Retained Earnings 4.55 5.92 3.43 3.23 2.85 2.3 1.59
Equity Cost 2.19 2.54 2.54 2.89 3.22 3.51 3.74
Cost of Equity 10.1% 10.1% 10.1% 10.1% 10.1% 10.1% 10.1%
Excess Return 4.7 6.19 5.0 5.68 6.33 6.89 7.35
Discounted Excess Return
4.54 4.69 4.74 4.69 4.54

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 21,359 45,286 35,731 27,313 32,390 21,369 18,158 11,832 11,872 11,609 10,210 9,182
Total 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
Return on Equity 29.96% 34.67% 31.71% 28.42% 41.41% 32.5% 33.5% 21.58% 23.18% 27.15% 27.56% 27.88%
Dividends Paid to Common Shareholders 8,782 14,574 12,134 9,594 9,646 9,802 8,816 10,424 7,001 6,016 4,818 3,775
Payout Ratio 46.74% 32.19% 33.96% 34.58% 29.11% 45.54% 47.89% 90.13% 61.09% 52.02% 46.92% 40.67%
Shares Outstanding 5,186 5,187 5,186 5,186 5,186 5,186 5,186 5,186 5,186 5,186 5,186 5,186
Earnings per Share 4.14 8.73 6.89 5.35 6.39 4.15 3.55 2.23 2.21 2.23 1.98 1.79
Dividend per Share 1.69 2.81 2.34 1.85 1.86 1.89 1.7 2.01 1.35 1.16 0.929 0.728
Dividend Growth Rate 18.45% 20.09% 26.49% -0.538% -1.59% 11.18% -15.42% 48.89% 16.38% 24.87% 27.61% 45.02%
Book Value 15.11 26.67 25.19 21.73 18.53 15.08 12.68 10.45 10.57 9.88 8.25 7.14
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Discounting Cash Flows

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