COST vs TSM: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+45.0%).
TSM trades at a lower forward P/E
(38.8x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
TSM |
| Current Price |
$947.50 |
$409.74 |
| Fair Value Estimate |
$933.84 |
$594.12 |
| Upside to Fair Value |
-1.4%
|
+45.0%
|
| Market Cap |
$420.2B |
$2,125.1B |
| Forward P/E |
47.6x
|
38.8x
|
| EV / EBITDA |
28.3x
|
17.6x
|
| Price / Sales |
1.4x
|
14.5x
|
| Price / FCF |
47.7x
|
58.4x
|
| Revenue Growth YoY |
+11.6%
|
+36.0%
|
| Gross Margin |
12.9%
|
61.9%
|
| Operating Margin |
3.8%
|
53.2%
|
| Return on Equity |
28.3%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.1%
|
1.71%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Costco Wholesale Corporation operates as a membership-only warehouse club offering a wide range of merchandise at low prices. The company exhibits high business quality with a durable competitive moat driven by cost advantages, strong brand loyalty, and efficient operations, reflected in a robust ROE of 28.3% and solid revenue growth of 11.6% in the most recent quarter. Despite these strengths, t…
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
| Metric |
COST |
TSM |
| Zone Low |
$700.38 |
$445.59 |
| Zone High |
$793.76 |
$505.00 |
| In Buy Zone? |
No
|
Yes
|