Question 1

What is TSMC's P/E ratio?

Accepted Answer

TSMC (TSM) P/E ratio is 30.3× as of July 22, 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 29.4×.

Question 5

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

Accepted Answer

TSMC's P/E ratio of 30.3× is above its own 5-year average of 23.4× and above the sector median of 29.4×. That places the current reading at the 63th 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 168.0× in 2002. The 5-year average is 23.4× 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	$55.6B	28.4×	+0.0×	Dec 31, 2025
2024	$1.02T	$36.1B	28.3×	+8.1×	Dec 31, 2024
2023	$545B	$27B	20.2×	+8.6×	Dec 31, 2023
2022	$386B	$33.3B	11.6×	-17.7×	Dec 31, 2022
2021	$624B	$21.3B	29.3×	-3.0×	Dec 31, 2021
2020	$565B	$17.5B	32.4×	+5.5×	Dec 31, 2020
2019	$301B	$11.2B	26.9×	+10.5×	Dec 31, 2019
2018	$191B	$11.7B	16.4×	-1.8×	Dec 31, 2018
2017	$207B	$11.4B	18.2×	+3.8×	Dec 31, 2017
2016	$149B	$10.4B	14.4×	+2.1×	Dec 31, 2016
2015	$118B	$9.57B	12.3×	-1.5×	Dec 31, 2015
2014	$116B	$8.41B	13.8×	-0.8×	Dec 31, 2014
2013	$90.4B	$6.21B	14.6×	-1.2×	Dec 31, 2013
2012	$89B	$5.63B	15.8×	+1.2×	Dec 31, 2012
2011	$66.9B	$4.57B	14.6×	+2.0×	Dec 31, 2011
2010	$65B	$5.13B	12.7×	-8.6×	Dec 31, 2010
2009	$58.1B	$2.73B	21.3×	+8.6×	Dec 31, 2009
2008	$40.7B	$3.21B	12.7×	-3.1×	Dec 31, 2008
2007	$52.6B	$3.35B	15.7×	+1.3×	Dec 31, 2007
2006	$56.3B	$3.89B	14.5×	-2.4×	Dec 31, 2006
2005	$48.9B	$2.9B	16.9×	+2.2×	Dec 31, 2005
2004	$39.4B	$2.68B	14.7×	-16.3×	Dec 31, 2004
2003	$39.8B	$1.29B	31.0×	-13.2×	Dec 31, 2003
2002	$27.4B	$621M	44.2×	—	Dec 31, 2002


Dell Technologies (DELL)	16.2×
Western Digital (WDC)	15.7×
Accenture (ACN)	15.4×
Gartner (IT)	14.9×
CDW (CDW)	14.5×
Adobe (ADBE)	14.4×
Leidos Holdings (LDOS)	14.1×
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×
First Solar (FSLR)	12.7×
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×
Sunrun (RUN)	5.6×
Lyft (LYFT)	1.8×
IBM (IBM)	0.0×

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

P/E Ratio daily chart for TSMC (TSM)

Historical P/E Ratio for TSMC (TSM) from 2002 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