Definitive Analysis
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Taiwan Semiconductor Manufacturing Company Limited (TSFA.F)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$6,360.39 - $30,425.36$13,840.11
Multi-Stage$3,392.23 - $3,710.67$3,548.54
Blended Fair Value$8,694.33
Current Price$8,480.33
Upside2.52%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.96%16.66%35.0028.1327.5025.6225.0025.0020.0017.5015.0011.25
YoY Growth--24.45%2.27%7.32%2.50%0.00%25.00%14.29%16.67%33.34%50.01%
Dividend Yield--0.64%0.63%0.97%0.86%0.75%1.71%1.57%1.39%1.51%1.33%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,586,819.13
(-) Cash Dividends Paid (M)440,849.82
(=) Cash Retained (M)1,145,969.31
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)317,363.83198,352.39119,011.43
Cash Retained (M)1,145,969.311,145,969.311,145,969.31
(-) Cash Required (M)-317,363.83-198,352.39-119,011.43
(=) Excess Retained (M)828,605.48947,616.921,026,957.87
(/) Shares Outstanding (M)10,372.2210,372.2210,372.22
(=) Excess Retained per Share79.8991.3699.01
LTM Dividend per Share42.5042.5042.50
(+) Excess Retained per Share79.8991.3699.01
(=) Adjusted Dividend122.39133.86141.51
WACC / Discount Rate7.53%7.53%7.53%
Growth Rate5.50%6.50%7.50%
Fair Value$6,360.39$13,840.11$30,425.36
Upside / Downside-25.00%63.20%258.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,586,819.131,689,962.371,799,809.931,916,797.572,041,389.412,174,079.722,239,302.12
Payout Ratio27.78%40.23%52.67%65.11%77.56%90.00%92.50%
Projected Dividends (M)440,849.82679,797.27947,945.311,248,080.441,583,228.071,956,671.752,071,354.46

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.53%7.53%7.53%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)626,256.54632,192.63638,128.71
Year 2 PV (M)804,505.46819,829.03835,297.16
Year 3 PV (M)975,800.761,003,812.491,032,355.24
Year 4 PV (M)1,140,341.461,184,195.771,229,302.98
Year 5 PV (M)1,298,321.551,361,030.971,426,140.42
PV of Terminal Value (M)30,339,768.2231,805,190.3733,326,697.68
Equity Value (M)35,184,994.0036,806,251.2638,487,922.18
Shares Outstanding (M)10,372.2210,372.2210,372.22
Fair Value$3,392.23$3,548.54$3,710.67
Upside / Downside-60.00%-58.16%-56.24%

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