Quick Analysis of TSMC by Bohdan Vorona / Longtermpick
I have benefited greatly from being a part of some (international) communities. This was shared by (Facebook user) Bohdan Vorona. This is a quick analysis of TSMC by longtermpick.com.
He started with company background info and presented the competition (for cross reference of valuation like P/E, P/S, P/CF ratios). Qualitative strengths and risks were identified with some key ratios.
The next was to do a valuation of the company using base, bull and bear cases.
While I have mixed thoughts towards (future) valuation, the above example lists the various assumptions in place. These include a 30% margin of safety and a discount rate of 12% based on a 5-year projection (which I prefer over 10 years).
He has worked out a 30% Margin of Safety price of $160.02, $196.38 and $123.65 for the respective outlook on base, bull and bear cases.
There is so much that we can learn from one another from this excellent example of valuation. Maybe we can incorporate part of this into our current valuation model.
(This is not investing advice.)
I wish to thank Longtermpick.com and Bohdan Vorona for these excellent charts.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Other helpful links: