Question 1

What is TSMC's P/FCF ratio?

Accepted Answer

TSMC (TSM) P/FCF ratio is 60.6× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for TSMC?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For TSMC specifically, the relevant sector benchmark is the current sector median of 21.6×.

Question 5

Is TSMC's P/FCF ratio high or low?

Accepted Answer

TSMC's P/FCF ratio of 60.6× is above its own 5-year average of 43.2× and above the sector median of 21.6×. That places the current reading at the 73th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is TSMC's historical P/FCF ratio range?

Accepted Answer

In the available daily series, TSMC (TSM) P/FCF ratio has ranged from a low of 7.9× in 2008 to a high of 220.1× in 2013. The 5-year average is 43.2× and the 5-year median is 42.7×.

Question 7

What was TSMC's P/FCF ratio in 2025?

Accepted Answer

TSMC (TSM) P/FCF ratio at the end of 2025 was 48.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does TSMC's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$1.58T	$32.59B	48.4×	+10.7×	Dec 31, 2025
2024	$1.02T	$27.18B	37.7×	-12.1×	Dec 31, 2024
2023	$545.43B	$10.95B	49.8×	+27.8×	Dec 31, 2023
2022	$386.31B	$17.53B	22.0×	-42.7×	Dec 31, 2022
2021	$623.94B	$9.63B	64.8×	+11.2×	Dec 31, 2021
2020	$565.49B	$10.56B	53.6×	-7.4×	Dec 31, 2020
2019	$301.31B	$4.94B	61.0×	+38.6×	Dec 31, 2019
2018	$191.42B	$8.55B	22.4×	-2.7×	Dec 31, 2018
2017	$207.32B	$8.26B	25.1×	+1.8×	Dec 31, 2017
2016	$149.10B	$6.40B	23.3×	+9.4×	Dec 31, 2016
2015	$117.98B	$8.48B	13.9×	-13.5×	Dec 31, 2015
2014	$116.06B	$4.23B	27.4×	-19.5×	Dec 31, 2014
2013	$90.44B	$1.93B	47.0×	-13.8×	Dec 31, 2013
2012	$88.96B	$1.46B	60.8×	+0.2×	Dec 31, 2012
2011	$66.91B	$1.10B	60.6×	+13.4×	Dec 31, 2011
2010	$64.98B	$1.38B	47.2×	+20.6×	Dec 31, 2010
2009	$58.12B	$2.18B	26.6×	+18.7×	Dec 31, 2009
2008	$40.66B	$5.13B	7.9×	-9.4×	Dec 31, 2008
2007	$52.60B	$3.04B	17.3×	+2.8×	Dec 31, 2007
2006	$56.29B	$3.88B	14.5×	-6.1×	Dec 31, 2006
2005	$48.91B	$2.37B	20.6×	+7.3×	Dec 31, 2005
2004	$39.40B	$2.94B	13.4×	-1.4×	Dec 31, 2004
2003	$39.80B	$2.69B	14.8×	—	Dec 31, 2003
2002	$27.42B	—	—	—	Dec 31, 2002
2001	$57.80B	—	—	—	Dec 31, 2001


Intuit (INTU)	13.9×
Okta (OKTA)	13.8×
EPAM Systems (EPAM)	13.4×
Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	10.4×
Accenture (ACN)	10.3×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
Science Applications International (SAIC)	6.7×
Strategy (MSTR)	5.5×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×

P/FCF Ratio for TSMC (TSM)

P/FCF Ratio daily chart for TSMC (TSM)

Historical P/FCF Ratio for TSMC (TSM) from 2001 to 2025

About P/FCF Ratio at TSMC (TSM)

TSMC P/FCF Ratio by Year

TSMC P/FCF Ratio 2025: 48.4×

TSMC P/FCF Ratio 2024: 37.7×

TSMC P/FCF Ratio 2023: 49.8×

TSMC P/FCF Ratio 2022: 22.0×

TSMC P/FCF Ratio 2021: 64.8×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

TSMC (TSM) Key Financials

P/FCF Ratio daily chart for TSMC (TSM)

Historical P/FCF Ratio for TSMC (TSM) from 2001 to 2025

About P/FCF Ratio at TSMC (TSM)

TSMC P/FCF Ratio by Year

TSMC P/FCF Ratio 2025: 48.4×

TSMC P/FCF Ratio 2024: 37.7×

TSMC P/FCF Ratio 2023: 49.8×

TSMC P/FCF Ratio 2022: 22.0×

TSMC P/FCF Ratio 2021: 64.8×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

+What is TSMC's P/FCF ratio?

+How is the P/FCF ratio calculated?

+What is the P/FCF ratio?

+What is a good P/FCF ratio for TSMC?

+Is TSMC's P/FCF ratio high or low?

+What is TSMC's historical P/FCF ratio range?

+What was TSMC's P/FCF ratio in 2025?

+Why does TSMC's P/FCF ratio change over time?

TSMC (TSM) Key Financials