Question 1

What is TSMC's P/B ratio?

Accepted Answer

TSMC (TSM) P/B ratio is 10.8× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by book value of equity, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/B ratio calculated?

Accepted Answer

P/B = Market Capitalisation ÷ Book Value of Equity (most recent quarterly shareholders' equity), or equivalently Share Price ÷ Book Value Per Share. 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/B ratio?

Accepted Answer

The price-to-book (P/B) ratio compares a company's market capitalisation to its book value of equity (total shareholders' equity) on the most recent quarterly balance sheet. It is calculated as market cap ÷ book value of equity (equivalent to share price ÷ book value per share). A P/B below 1× implies the market values the business below its accounting net worth; values well above 1× reflect intangible assets, brand value, or a high return on equity.

Question 4

What is a good P/B ratio for TSMC?

Accepted Answer

A "good" P/B depends on the business model. Banks, insurers, and other capital-heavy financials typically trade near 1×; asset-light technology and consumer-brand companies can sustainably trade at 5×+ because much of their value is intangible. P/B is most informative when paired with return on equity (ROE). For TSMC specifically, the relevant sector benchmark is the current sector median of 5.6×.

Question 5

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

Accepted Answer

TSMC's P/B ratio of 10.8× is above its own 5-year average of 6.9× and above the sector median of 5.6×. That places the current reading at the 92th 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/B ratio range?

Accepted Answer

In the available daily series, TSMC (TSM) P/B ratio has ranged from a low of 2.8× in 2008 to a high of 13.4× in 2026. The 5-year average is 6.9× and the 5-year median is 6.9×.

Question 7

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

Accepted Answer

TSMC (TSM) P/B ratio at the end of 2025 was 9.2×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month book value figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (book value). 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	$171B	9.2×	+1.3×	Dec 31, 2025
2024	$1.02T	$129B	7.9×	+3.1×	Dec 31, 2024
2023	$545B	$113B	4.8×	+0.8×	Dec 31, 2023
2022	$386B	$94.8B	4.1×	-3.9×	Dec 31, 2022
2021	$624B	$77.8B	8.0×	-0.6×	Dec 31, 2021
2020	$565B	$65.6B	8.6×	+3.0×	Dec 31, 2020
2019	$301B	$54.1B	5.6×	+2.1×	Dec 31, 2019
2018	$191B	$54.5B	3.5×	-0.6×	Dec 31, 2018
2017	$207B	$50.7B	4.1×	+0.5×	Dec 31, 2017
2016	$149B	$42.1B	3.5×	+0.3×	Dec 31, 2016
2015	$118B	$36.3B	3.3×	-0.3×	Dec 31, 2015
2014	$116B	$32.3B	3.6×	+0.4×	Dec 31, 2014
2013	$90.4B	$28.2B	3.2×	-0.4×	Dec 31, 2013
2012	$89B	$24.5B	3.6×	+0.4×	Dec 31, 2012
2011	$66.9B	$20.6B	3.2×	-0.1×	Dec 31, 2011
2010	$65B	$19.7B	3.3×	-0.5×	Dec 31, 2010
2009	$58.1B	$15.5B	3.8×	+1.0×	Dec 31, 2009
2008	$40.7B	$14.5B	2.8×	-0.7×	Dec 31, 2008
2007	$52.6B	$15B	3.5×	-0.6×	Dec 31, 2007
2006	$56.3B	$13.7B	4.1×	+0.5×	Dec 31, 2006
2005	$48.9B	$13.6B	3.6×	+0.5×	Dec 31, 2005
2004	$39.4B	$12.6B	3.1×	-1.0×	Dec 31, 2004
2003	$39.8B	$9.69B	4.1×	+0.9×	Dec 31, 2003
2002	$27.4B	$8.56B	3.2×	—	Dec 31, 2002


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P/B Ratio for TSMC (TSM) 2002-2026

P/B Ratio daily chart for TSMC (TSM)

Historical P/B Ratio for TSMC (TSM) from 2002 to 2025

About P/B Ratio at TSMC (TSM)

TSMC P/B Ratio by Year

TSMC P/B Ratio 2025: 9.2×

TSMC P/B Ratio 2024: 7.9×

TSMC P/B Ratio 2023: 4.8×

TSMC P/B Ratio 2022: 4.1×

TSMC P/B Ratio 2021: 8.0×

Sector peers by P/B Ratio — chart

Sector peers by P/B Ratio — table

Frequently asked questions

TSMC (TSM) Key Financials