Taiwan Semiconductor - Comparative Multiple Analysis

Taiwan Semiconductor (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Taiwan Semiconductor

WikiWealth compares Taiwan Semiconductor's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Taiwan Semiconductor's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Taiwan Semiconductor.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Taiwan Semiconductor's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Taiwan Semiconductor's Analysis

How does this work? The Comparative Investment Analysis determines the value of Taiwan Semiconductor by comparing Taiwan Semiconductor financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Taiwan Semiconductor.

See the Taiwan Semiconductor cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Taiwan Semiconductor.

Also, see the Taiwan Semiconductor's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Taiwan Semiconductor's valuation conclusion for a quick summary.