Question 1

What is TSMC's P/E ratio?

Accepted Answer

TSMC (TSM) P/E ratio is 34.4× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for TSMC?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For TSMC specifically, the relevant sector benchmark is the current sector median of 29.6×.

Question 5

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

Accepted Answer

TSMC's P/E ratio of 34.4× is above its own 5-year average of 23.3× and above the sector median of 29.6×. That places the current reading at the 91th 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/E ratio range?

Accepted Answer

In the available daily series, TSMC (TSM) P/E ratio has ranged from a low of 10.9× in 2010 to a high of 168.6× in 2002. The 5-year average is 23.3× and the 5-year median is 26.4×.

Question 7

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

Accepted Answer

TSMC (TSM) P/E ratio at the end of 2025 was 28.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$55.57B	28.4×	+0.0×	Dec 31, 2025
2024	$1.02T	$36.12B	28.3×	+8.1×	Dec 31, 2024
2023	$545.43B	$26.98B	20.2×	+8.6×	Dec 31, 2023
2022	$386.31B	$33.32B	11.6×	-17.7×	Dec 31, 2022
2021	$623.94B	$21.26B	29.3×	-3.0×	Dec 31, 2021
2020	$565.49B	$17.46B	32.4×	+5.5×	Dec 31, 2020
2019	$301.31B	$11.22B	26.9×	+10.5×	Dec 31, 2019
2018	$191.42B	$11.69B	16.4×	-1.8×	Dec 31, 2018
2017	$207.32B	$11.39B	18.2×	+3.8×	Dec 31, 2017
2016	$149.10B	$10.35B	14.4×	+2.1×	Dec 31, 2016
2015	$117.98B	$9.57B	12.3×	-1.5×	Dec 31, 2015
2014	$116.06B	$8.41B	13.8×	-0.8×	Dec 31, 2014
2013	$90.44B	$6.21B	14.6×	-1.2×	Dec 31, 2013
2012	$88.96B	$5.63B	15.8×	+1.2×	Dec 31, 2012
2011	$66.91B	$4.57B	14.6×	+2.0×	Dec 31, 2011
2010	$64.98B	$5.13B	12.7×	-8.6×	Dec 31, 2010
2009	$58.12B	$2.73B	21.3×	+8.6×	Dec 31, 2009
2008	$40.66B	$3.21B	12.7×	-3.1×	Dec 31, 2008
2007	$52.60B	$3.35B	15.7×	+1.3×	Dec 31, 2007
2006	$56.29B	$3.89B	14.5×	-2.4×	Dec 31, 2006
2005	$48.91B	$2.90B	16.9×	+2.2×	Dec 31, 2005
2004	$39.40B	$2.68B	14.7×	-16.3×	Dec 31, 2004
2003	$39.80B	$1.29B	31.0×	-13.2×	Dec 31, 2003
2002	$27.42B	$620.86M	44.2×	-90.5×	Dec 31, 2002
2001	$57.80B	$429.19M	134.7×	—	Dec 31, 2001


NXP Semiconductors (NXPI)	17.9×
Uber (UBER)	17.3×
Broadridge Financial Solutions (BR)	17.2×
NetApp (NTAP)	16.8×
Accenture (ACN)	16.8×
Corpay (CPAY)	16.7×
Dell Technologies (DELL)	16.2×
Western Digital (WDC)	15.7×
Adobe (ADBE)	14.9×
CDW (CDW)	14.5×
Zoom Communications (ZM)	13.8×
QUALCOMM (QCOM)	13.7×
PTC (PTC)	13.5×
Paycom Software (PAYC)	13.2×
Elastic N.V. (ESTC)	13.2×
Cognizant (CTSH)	13.1×
GoDaddy (GDDY)	12.7×
Gen Digital (GEN)	11.7×
Duolingo (DUOL)	10.9×
Super Micro Computer (SMCI)	10.9×
Science Applications International (SAIC)	10.3×
Fiserv (FISV)	9.3×
Fidelity National Information Services (FIS)	9.0×
HP (HPQ)	7.5×
Lyft (LYFT)	1.8×

P/E Ratio for TSMC (TSM)

P/E Ratio daily chart for TSMC (TSM)

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

About P/E Ratio at TSMC (TSM)

TSMC P/E Ratio by Year

TSMC P/E Ratio 2025: 28.4×

TSMC P/E Ratio 2024: 28.3×

TSMC P/E Ratio 2023: 20.2×

TSMC P/E Ratio 2022: 11.6×

TSMC P/E Ratio 2021: 29.3×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

TSMC (TSM) Key Financials

P/E Ratio daily chart for TSMC (TSM)

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

About P/E Ratio at TSMC (TSM)

TSMC P/E Ratio by Year

TSMC P/E Ratio 2025: 28.4×

TSMC P/E Ratio 2024: 28.3×

TSMC P/E Ratio 2023: 20.2×

TSMC P/E Ratio 2022: 11.6×

TSMC P/E Ratio 2021: 29.3×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

+What is TSMC's P/E ratio?

+How is the P/E ratio calculated?

+What is the P/E ratio?

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

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

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

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

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

TSMC (TSM) Key Financials