TSMC(US:TSM) Financial Modeling Prepยท2025-10-16 12:05Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest contract chipmaker, specializing in chips for AI and high-performance computing, competing with Intel and Samsung in the semiconductor market [1] Financial Performance - On October 16, 2025, TSMC reported earnings per share of $2.85, exceeding the estimated $2.59, with revenue reaching approximately $32.36 billion, surpassing the estimated $31.54 billion [2][6] - The surge in earnings is driven by increasing demand for AI and high-performance computing chips, contributing to a record-breaking quarterly net profit and a 39.1% increase in third-quarter net profit [3] Valuation Metrics - TSMC has a price-to-earnings (P/E) ratio of approximately 33.15, a price-to-sales ratio of about 14.23, an enterprise value to sales ratio of around 13.83, and an enterprise value to operating cash flow ratio of approximately 22.03 [4] Financial Stability - The company maintains a low debt-to-equity ratio of 0.22 and a strong current ratio of 2.37, indicating financial stability and the ability to cover short-term liabilities [5][6] - The earnings yield of about 3.02% suggests an attractive return on investment for those seeking exposure to the semiconductor market [5]