Taiwan Semiconductor EBITDA vs. Return On Equity
| TSM Stock | USD 190.08 1.16 0.61% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 1.5 T | Current Value 1.5 T | Quarterly Volatility 477.5 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.37 | 0.5436 |
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| Net Profit Margin | 0.26 | 0.394 |
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| Pretax Profit Margin | 0.29 | 0.4508 |
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| Return On Assets | 0.13 | 0.154 |
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| Return On Equity | 0.18 | 0.2462 |
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For Taiwan Semiconductor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Taiwan Semiconductor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Taiwan Semiconductor Manufacturing utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Taiwan Semiconductor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Taiwan Semiconductor Manufacturing over time as well as its relative position and ranking within its peers.
Taiwan |
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Taiwan Semiconductor. If investors know Taiwan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Taiwan Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.541 | Dividend Share 15.5 | Earnings Share 6.23 | Revenue Per Share 63.9069 | Quarterly Revenue Growth 0.39 |
The market value of Taiwan Semiconductor is measured differently than its book value, which is the value of Taiwan that is recorded on the company's balance sheet. Investors also form their own opinion of Taiwan Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is Taiwan Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Taiwan Semiconductor's market value can be influenced by many factors that don't directly affect Taiwan Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Taiwan Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Taiwan Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taiwan Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Taiwan Semiconductor Return On Equity vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Taiwan Semiconductor's current stock value. Our valuation model uses many indicators to compare Taiwan Semiconductor value to that of its competitors to determine the firm's financial worth. Taiwan Semiconductor Manufacturing is currently regarded as top stock in ebitda category among its peers. It is rated second in return on equity category among its peers . The ratio of EBITDA to Return On Equity for Taiwan Semiconductor Manufacturing is about 5,185,401,355,690 . At this time, Taiwan Semiconductor's EBITDA is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Taiwan Semiconductor by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Taiwan Return On Equity vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Taiwan Semiconductor |
| = | 1.45 T |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Taiwan Semiconductor |
| = | 0.28 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Taiwan Return On Equity Comparison
Taiwan Semiconductor is currently under evaluation in return on equity category among its peers.
Taiwan Semiconductor Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Taiwan Semiconductor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Taiwan Semiconductor will eventually generate negative long term returns. The profitability progress is the general direction of Taiwan Semiconductor's change in net profit over the period of time. It can combine multiple indicators of Taiwan Semiconductor, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 292.9 B | 307.5 B | |
| Operating Income | 921.5 B | 967.5 B | |
| Income Before Tax | 974.5 B | 1 T | |
| Total Other Income Expense Net | 53.1 B | 55.7 B | |
| Net Income | 979.3 B | 1 T | |
| Income Tax Expense | 128.3 B | 134.7 B | |
| Net Income Applicable To Common Shares | 1.2 T | 1.2 T | |
| Net Income From Continuing Ops | 851 B | 481.5 B | |
| Interest Income | 60.3 B | 63.3 B | |
| Net Interest Income | 48.3 B | 50.7 B | |
| Change To Netincome | 30.9 B | 32.4 B | |
| Net Income Per Share | 32.85 | 34.49 | |
| Income Quality | 1.53 | 2.05 | |
| Net Income Per E B T | 0.87 | 1.05 |
Taiwan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Taiwan Semiconductor. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Taiwan Semiconductor position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Taiwan Semiconductor's important profitability drivers and their relationship over time.
Use Taiwan Semiconductor in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Taiwan Semiconductor position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Taiwan Semiconductor will appreciate offsetting losses from the drop in the long position's value.Taiwan Semiconductor Pair Trading
Taiwan Semiconductor Manufacturing Pair Trading Analysis
The ability to find closely correlated positions to Taiwan Semiconductor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Taiwan Semiconductor when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Taiwan Semiconductor - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Taiwan Semiconductor Manufacturing to buy it.
The correlation of Taiwan Semiconductor is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Taiwan Semiconductor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Taiwan Semiconductor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Taiwan Semiconductor can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Taiwan Semiconductor position
In addition to having Taiwan Semiconductor in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Taiwan Semiconductor's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Taiwan Semiconductor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Taiwan Semiconductor's income statement, its balance sheet, and the statement of cash flows.