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Taiwan Semiconductor Manufacturing – Semiconductor and Related Device Manufacturing
Taiwan Semiconductor Manufacturing Company Limited is a Taiwanese multinational semiconductor contract manufacturing and design company.
Analysis Results
Intrinsic Value $30.70
Latest Price $98.55
Relative Value 221% overvalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -2.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -2.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 6.21 5.98
2024 6.05 5.6
2025 5.9 5.25
2026 5.75 4.92
2027 5.6 4.61
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 168 billion. This corresponds to a present value of 133 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 26.3 billion. Adding in the terminal value gives a total present value of 159 billion.

There are presently 5.19 billion outstanding shares, so the intrinsic value per share is 30.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 66,950,948,044
Current Cash 50,889,611,883
Current Liabilities 32,174,716,012
Current Debt 629,882,602
Non-Cash Working Capital (NCWC) -15,483,497,250
Change in NCWC -7,556,294,603
EBIT 36,830,650,074
Tax Provision 4,917,293,972
Depreciation and Amortization 14,260,137,843
Capital Expenditure -35,535,894,472
Unlevered Free Cash Flow 3,144,680,233
Current Assets 57,887,504,468
Current Cash 42,802,503,396
Current Liabilities 27,316,216,394
Current Debt 4,304,012,676
Non-Cash Working Capital (NCWC) -7,927,202,646
Change in NCWC 539,075,908
EBIT 23,623,189,958
Tax Provision 2,527,029,751
Depreciation and Amortization 15,214,858,430
Capital Expenditure -30,553,864,977
Unlevered Free Cash Flow 6,323,705,236
Current Assets 38,889,255,650
Current Cash 28,101,518,639
Current Liabilities 22,499,898,526
Current Debt 3,245,882,961
Non-Cash Working Capital (NCWC) -8,466,278,554
Change in NCWC -1,515,061,816
EBIT 20,282,921,190
Tax Provision 2,625,587,068
Depreciation and Amortization 11,811,661,239
Capital Expenditure -18,400,936,464
Unlevered Free Cash Flow 9,620,845,643
Current Assets 27,416,808,679
Current Cash 19,435,299,279
Current Liabilities 19,942,801,629
Current Debt 5,010,075,491
Non-Cash Working Capital (NCWC) -6,951,216,737
Change in NCWC -7,717,584,814
EBIT 12,533,609,272
Tax Provision 1,194,344,127
Depreciation and Amortization 9,561,532,116
Capital Expenditure -15,656,316,350
Unlevered Free Cash Flow -2,430,816,211
Current Assets 31,136,177,738
Current Cash 22,740,763,196
Current Liabilities 11,674,666,770
Current Debt 4,045,620,304
Non-Cash Working Capital (NCWC) 766,368,076
Change in NCWC 2,654,170,515
EBIT 12,720,909,807
Tax Provision 1,126,674,698
Depreciation and Amortization 9,571,259,735
Capital Expenditure -10,557,218,287
Unlevered Free Cash Flow 13,287,181,631
Current Assets 28,756,521,333
Current Cash 21,763,706,720
Current Liabilities 12,978,973,466
Current Debt 4,098,356,413
Non-Cash Working Capital (NCWC) -1,887,802,439
Change in NCWC -28,133,316
EBIT 13,081,268,080
Tax Provision 1,715,015,688
Depreciation and Amortization 8,726,985,591
Capital Expenditure -11,240,525,256
Unlevered Free Cash Flow 8,851,516,664
Current Assets 25,285,377,002
Current Cash 19,346,094,436
Current Liabilities 10,769,511,338
Current Debt 2,970,559,650
Non-Cash Working Capital (NCWC) -1,859,669,122
Change in NCWC -1,366,812,427
EBIT 11,793,008,546
Tax Provision 1,673,605,426
Depreciation and Amortization 6,921,100,738
Capital Expenditure -10,274,842,203
Unlevered Free Cash Flow 5,418,519,382
Current Assets 22,730,588,662
Current Cash 17,842,317,650
Current Liabilities 7,298,566,815
Current Debt 1,917,439,107
Non-Cash Working Capital (NCWC) -492,856,695
Change in NCWC -524,786,565
EBIT 9,927,108,462
Tax Provision 1,450,285,610
Depreciation and Amortization 6,772,981,461
Capital Expenditure -7,969,108,587
Unlevered Free Cash Flow 6,856,681,693
Current Assets 19,714,385,351
Current Cash 13,747,467,267
Current Liabilities 7,072,686,489
Current Debt 1,137,698,275
Non-Cash Working Capital (NCWC) 31,929,870
Change in NCWC 2,532,857,828
EBIT 9,463,402,480
Tax Provision 1,506,817,391
Depreciation and Amortization 6,300,753,246
Capital Expenditure -9,200,116,347
Unlevered Free Cash Flow 7,596,595,464

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