On October 13, 2026, Taiwan Semiconductor Manufacturing Co Ltd TSM shares rose 0.2% today, currently priced at $445.12. The stock has seen a 52-week range between $266.82 and $487.47.
According to the GF Value™, which is GuruFocus’ proprietary estimate of intrinsic value based on historical trading multiples, past business growth, and future performance projections, TSM is currently considered overvalued. The current price of $445.12 exceeds the GF Value™ of $375.40 by 18.6%, suggesting that there is no margin of safety for potential investors. This overvaluation poses a risk, as the stock may face downward pressure if market conditions shift or if the company’s performance does not meet high expectations.
The GF Valuation label indicates that the stock is modestly overvalued, reinforcing the caution that investors should exercise when considering TSM at its current price. While the company has maintained robust growth and profitability metrics, the significant gap between its market price and intrinsic value points to potential overexuberance in the market.
Currently, TSM’s P/E ratio is 32.1x, which is 42% above its 5-year median P/E of 22.6x. This comparison illustrates that TSM is trading at a premium relative to its historical valuation metrics. The P/E analysis aligns with the GF Value™ verdict of overvaluation, as the elevated P/E suggests that the stock is priced significantly higher than what its historical performance would typically support.
The GF Score™ assesses a company’s financial health, profitability, growth potential, valuation, and momentum to provide a comprehensive overview of its quality and performance. TSM boasts a strong GF Score™ of 98/100, highlighting its solid fundamentals and favorable growth outlook. Its strongest sub-ranks are in Profitability and Growth, both rated at 10/10, while its Valuation rank is a more moderate 6/10.
The high ratings in Profitability and Growth indicate that TSM is performing exceptionally well in generating profits and maintaining robust growth rates. However, the Valuation rank of 6/10 suggests that while the company is strong fundamentally, its current price may not reflect its intrinsic value, corroborating the earlier assessment of overvaluation.
A total of 43 gurus currently hold TSM shares, with 12 adding to their positions and 27 trimming their holdings in recent quarters. This mixed activity among gurus indicates a cautious sentiment surrounding the stock, as some see value while others are taking profits. This divergence can reflect varying opinions on TSM’s future performance and valuation.
In terms of insider activity, over the past 12 months, insiders have purchased shares worth $3.1M while selling $14.0M, resulting in a net selling of $10.8M. This pattern of net selling could signal that insiders may not have a strong confidence in the stock’s short-term outlook, further reinforcing the caution for potential investors considering TSM at its current valuation.
Considering the GF Value™ assessment, TSM is currently overvalued at a price of $445.12 compared to an intrinsic value of $375.40. The high P/E ratio, coupled with insider selling, suggests that while the company has strong fundamentals, the stock price may not be justifiable at this level. Therefore, caution is advised for potential investors looking at TSM in the current market environment.
For more detailed insight, you can visit the Taiwan Semiconductor Manufacturing Co Ltd TSM stock page for comprehensive data and analysis, or explore the GF Value™ page for additional valuation insights.
What is TSM’s GF Score™?
TSM has a GF Score™ of 98/100, indicating a strong financial position and promising growth potential based on various key metrics.
Is TSM overvalued or undervalued?
TSM is considered overvalued according to the GF Value™ verdict, as its current price exceeds the intrinsic value estimate by 18.6%.
What is TSM’s P/E ratio?
TSM’s current P/E ratio is 32.1x, which is significantly higher than its 5-year median P/E of 22.6x, indicating it is trading at a premium relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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