Taiwan Semiconductor Manufacturing ADR (TSM) is slightly overvalued and Texas Instruments Inc (TXN) is overvalued.
Both trade above our estimate of their intrinsic value. TSM is the closer of the two: -7%, against -43% for TXN.
Values as of the 19 Oct 2026 close.
A 12.5x revenue multiple, adjusted for growth and margin, values the shares at $392.34; the price of $420.22 is 7% above that value.
Leak Score 60/100 on 11 of 12 signals
A 9.6x revenue multiple, adjusted for growth and margin, values the shares at $193.18; the price of $276.15 is 43% above that value.
Leak Score 42/100 on 11 of 12 signals
| Metric | TSM | TXN |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $420.22 | $276.15 |
| Intrinsic value | $392.34 | $193.18 |
| Margin of safety | -7% | -43% |
| Leak Score | 60/100 (11/12) | 42/100 (11/12) |
| Market cap | $2.18T | $252.2B |
| Revenue growth, 5 years | 21.9% | 4.1% |
| Operating margin | 57.8% | 38.1% |
| Net margin | 51.5% | 30.9% |
| Return on equity | 42.0% | 35.0% |
| Debt to equity | 0.14 | 0.78 |
| P/E | 27.1x | 42.0x |
| Forward P/E | 18.4x | 26.6x |
| P/B | 10.8x | 14.0x |
| Dividend yield | 1.0% | 2.1% |