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Is this Large Market Cap Stock target price reasonable for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)?

The company in question is, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) currently with a stock price of 29.93 (3.53% today). The market cap for Taiwan Semiconductor Manufacturing Company Limited is 146317, and is in the sector Technology, and Semiconductor РIntegrated Circuits industry. The target price for Taiwan Semiconductor Manufacturing Company Limited is 27.15. Currently Taiwan Semiconductor Manufacturing Company Limited is trading with a P/E of 17.19, and a forward P/E of 14.8. Average volume for Taiwan Semiconductor Manufacturing Company Limited is 6880.08 and so far today it is 7680500.

Performance in the last year for Taiwan Semiconductor Manufacturing Company Limited has been 50.67%. For EPS growth, Taiwan Semiconductor Manufacturing Company Limited has seen a growth of 16.20%, and is looking to grow in the next year to 7.38%. More long term stats show that EPS growth has been 13.40% over the last five years and could be 15.00% for the next five years. Taiwan Semiconductor Manufacturing Company Limited has seen sales growth quarter over quarter at 8.00%, with EPS growth quarter over quarter at -8.70%. The 20-day simple moving average is 5.25%, with the 200-day simple moving average coming to 21.92%.

Since the IPO date for Taiwan Semiconductor Manufacturing Company Limited on the 10/9/1997, Taiwan Semiconductor Manufacturing Company Limited has seen performance year to date to be 36.50%. With Taiwan Semiconductor Manufacturing Company Limited trading at 29.93, the dividend yield is 3.14%, and the EPS is 1.74.

So could Taiwan Semiconductor Manufacturing Company Limited, be undervalued? Well as said before P/E is 17.19. The PEG is 1.15, P/S is 5.5 and the P/B is at 4.11. The P/cash is 6.85, with P/free cash flow at 21.11.

Taiwan Semiconductor Manufacturing Company Limited ability to deal with debt shows that the current ratio is 2.1, and the quick ratio is 2. This is with long term debt/equity at 0.15, and total debt/equity at 0.2.

In terms of margins, Taiwan Semiconductor Manufacturing Company Limited has a gross margin of 48.40%, an operating margin of 37.80% and a profit margin of 33.90%.Payout ratio for Taiwan Semiconductor Manufacturing Company Limited is 54.50%. Return on assets come to 16.90% with return on investment coming to 18.70%.

Insider ownership for Taiwan Semiconductor Manufacturing Company Limited, is at *TBA and institutional ownership comes to 20.00%. Outstanding shares are at 4888.64. While shares float is 4064.28. The float short is currently 0.62%, and short ratio is 3.63.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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