TAIWAN SEMICON price ascent is perplexing
 | By Vlad Skutelnik | Macroaxis Story |
In spite of rather unsteady fundamental drivers, TAIWAN SEMICON exhibited solid returns over the last few months and may actually be approaching a breakup point. TAIWAN SEMICON MANU has current Real Value of €32.232 per share. The regular price of the entity is €34.69. At this time the entity appears to be overvalued. Macroaxis measures value of TAIWAN SEMICON MANU from analyzing the entity fundamentals such as Return On Asset of 12.69%, Shares Outstanding of 25.93B and Return On Equity of 23.43% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend to buy undervalued stocks and to dispose of overvalued stocks since in the future securities prices and their ongoing real values will draw towards each other.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
TAIWAN SEMICON has accumulated 5.45B in total debt with debt to equity ratio (D/E) of 10.5 indicating the entity may have difficulties to generate enough cash to satisfy its financial obligations. This firm has Current Ratio of 2.62 suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about €0.45 per share. The company has Profit Margin (PM) of 34.57 % which can be a sign that it executes well on its competitive strategies and has a good control over its expenditures. This is very large.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Taiwan Semiconductor income statement, its balance sheet, and the statement of cash flows. Potential Taiwan Semiconductor investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Taiwan Semiconductor investors may use each financial statement separately, they are all related. The changes in Taiwan Semiconductor's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Taiwan Semiconductor's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Taiwan Semiconductor fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Taiwan Semiconductor performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Taiwan Semiconductor shares is the value that is considered the true value of the share. If the intrinsic value of Taiwan is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Taiwan Semiconductor. Please read more on our fundamental analysis page. How important is Taiwan Semiconductor's Liquidity
Taiwan Semiconductor financial leverage refers to using borrowed capital as a funding source to finance Taiwan Semiconductor Manufacturing ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Taiwan Semiconductor financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Taiwan Semiconductor's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Taiwan Semiconductor's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Taiwan Semiconductor's total debt and its cash.
What is driving Taiwan Semiconductor Investor Appetite?
The company has beta of 0.49. As returns on market increase, TAIWAN SEMICON returns are expected to increase less than the market. However during bear market, the loss on holding TAIWAN SEMICON will be expected to be smaller as well. The latest bullish price patterns experienced by current TAIWAN SEMICON shareholders has created some momentum for investors as it was traded today as low as 34.02 and as high as 34.69 per share. The company executives have been very successful with rebalancing the entity components at opportune times to take advantage of market volatility in January. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.2781. The current volatility is consistent with the ongoing market swings in January 2019 as well as with TAIWAN SEMICON MANU unsystematic, company specific events. TAIWAN SEMICON preserves 9.98x of book value per share. TAIWAN SEMICON is trading at 34.69. This is 1.55 percent increase. Today lowest is 34.02. To summarize, we believe that at this point TAIWAN SEMICON is overvalued with low probability of bankruptcy within the next 2 years. Our actual buy/sell recommendation on the firm is Sell.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Taiwan Semiconductor Manufacturing. Please refer to our Terms of Use for any information regarding our disclosure principles.