FEAF
2330 · as of 2026-11-13 · NT$ million unless stated · Automatic + team assumptions · Overridden from team file: assumptions, wacc_inputs.risk_free_rate, wacc_inputs.equity_risk_premium, balance_sheet.current_portion_lt_debt

TSMC

Market price
2,350 NTD
This is research, not a buy or sell recommendation. Robo-advice in Taiwan requires an FSC licence; FEAF analyses, explains and monitors, and the investor makes the decision. Judgement thresholds are working rules pending review by the team's finance members.
Valuation · 2330

At NT$ 2,350, the market price assumes free cash flow grows 5.19% per year forever (discount rate WACC 7.00%, ceiling 3.50%).

Market price
2,350 NTD
as of 2026-11-13
Perpetual growth implied by the market
5.19%
Perpetual-growth ceiling (nominal GDP): 3.50%
WACC
7.00%
Beta (2y weekly vs TAIEX): 1.03
FCFF 2025
1,013.0
bn

Enterprise-value bridge

Market capitalisation60.941 T
+ Interest-bearing debt1.033 T
− Cash & short-term investments3.068 T
= Enterprise value58.906 T

Cost of capital

Cost of equity7.10%
Cost of debt1.20%
Equity weight98.33%
WACC 7.00%
Effective tax rate15.98%
Beta (2y weekly vs TAIEX) Beta 1.03 (104 weekly pairs vs TAIEX)

Free cash flow

FCFF 2023 302.2 bn
FCFF 2024 879.0 bn
FCFF 2025 ← used 1,013.0 bn
Average 731.4 bn

Reverse DCF

Perpetual growth implied by the market 5.19%
Perpetual-growth ceiling (nominal GDP) 3.50%
Circularity check drift 3.79e-14%

A reverse DCF does not produce an intrinsic value. Feeding its g back into the same formula always returns the market price: that is a mathematical identity, not a valuation. The judgement comes next: is that number plausible?

Implied g exceeds the ceiling. The market is pricing growth that cannot last forever → a sign of overvaluation.

Sensitivity · fair value per share (NTD)

WACCg = 2.50%g = 3.00%g = 3.50%g = 4.00%g = 4.50%
6.00% 1,223 1,421 1,697 2,112 2,804
6.50% 1,080 1,229 1,427 1,705 2,122
7.00% 969 1,085 1,234 1,434 1,713
7.50% 880 973 1,090 1,240 1,440
8.00% 807 884 977 1,095 1,246

The middle row is the WACC computed from the input file; the middle column is the implied g. Every figure on this page comes straight from scripts/dcf.py, the same function as the CLI worksheet, so the two cannot silently diverge.

Data notes & adjustments

i Current portion of long-term debt is not published separately by FinMind; debt may be understated.

Source of each input

✓ price_per_share TWSE OpenAPI daily closing quote (https://openapi.twse.com.tw/v1/exchangeReport/STOCK_DAY_ALL), closing price NT$2,350.00 on 2026-11-13
✓ shares_issued_thousands TWSE OpenAPI company profile (https://openapi.twse.com.tw/v1/opendata/t187ap03_L), issued common shares 25,932,370,067 shares ÷ 1,000
✓ balance_sheet FinMind TaiwanStockBalanceSheet (https://api.finmindtrade.com/api/v4/data, stock_id=2330, date=2025-12-31): CashAndCashEquivalents=2,767,856.4M; short_term_investments (FinancialAssetsAtAmortizedCost+FinancialAssetsAtFairvalueThroughOtherComprehensiveIncome)=300,638.2M; short_term_borrowings (none)=0.0M; long_term_debt (BondsPayable+LongtermBorrowings)=896,062.0M; current_portion_lt_debt (folded into OtherCurrentLiabilities in FinMind)=0.0M. Official MOPS source: https://mopsov.twse.com.tw/mops/web/ajax_t164sb03?encodeURIComponent=1&step=1&firstin=1&off=1&queryName=co_id&inpuType=co_id&TYPEK=all&isnew=false&co_id=2330&year=114&season=04
✓ cash_flow FinMind TaiwanStockCashFlowsStatement (https://api.finmindtrade.com/api/v4/data, stock_id=2330, dates=2023-12-31, 2024-12-31, 2025-12-31, cumulative YTD as of Dec 31): cfo=CashFlowsFromOperatingActivities, capex=abs(PropertyAndPlantAndEquipment), interest=(2023:InterestExpense, 2024:InterestExpense, 2025:InterestExpense). Official MOPS source: https://mopsov.twse.com.tw/mops/web/ajax_t164sb05?encodeURIComponent=1&step=1&firstin=1&off=1&queryName=co_id&inpuType=co_id&TYPEK=all&isnew=false&co_id=2330&year=114&season=04
✓ tax FinMind TaiwanStockFinancialStatements (https://api.finmindtrade.com/api/v4/data, stock_id=2330, sum of 4 single quarters in FY2025: 2025-03-31, 2025-06-30, 2025-09-30, 2025-12-31): TAX=326,266.1M, PreTaxIncome=2,041,662.8M. Official MOPS source: https://mopsov.twse.com.tw/mops/web/ajax_t164sb04?encodeURIComponent=1&step=1&firstin=1&off=1&queryName=co_id&inpuType=co_id&TYPEK=all&isnew=false&co_id=2330&year=114&season=04
✓ risk_free_rate Taiwan 10-year government bond yield (~1.94%): https://ca.investing.com/rates-bonds/taiwan-10-year-bond-yield-historical-data
✓ beta TWSE/TPEx official daily close 2y weekly regression (2330 (TWSE) vs TAIEX, 104 weeks: 2024-W45..2026-W46) — https://www.twse.com.tw/rwd/zh/afterTrading/STOCK_DAY?stockNo=2330 & https://www.twse.com.tw/rwd/zh/TAIEX/MI_5MINS_HIST
✓ equity_risk_premium Damodaran country equity risk premium, Taiwan (~5.01%): https://pages.stern.nyu.edu/adamodar/New_Home_Page/datafile/ctryprem.html
✓ terminal_growth_ceiling Taiwan long-run nominal GDP growth projection (~3.5%, DGBAS / IMF WEO)