DHR vs TSM: Which Is the Better Buy?
Side-by-side comparison of Danaher Corporation and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Danaher Corporation · Healthcare
$195.98
+7.9% upside to fair value
Grade B
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%).
DHR trades at a lower forward P/E
(37.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DHR |
TSM |
| Current Price |
$195.98 |
$409.74 |
| Fair Value Estimate |
$211.54 |
$594.12 |
| Upside to Fair Value |
+7.9%
|
+45.0%
|
| Market Cap |
$138.7B |
$2,125.1B |
| Forward P/E |
37.8x
|
38.8x
|
| EV / EBITDA |
22.8x
|
17.6x
|
| Price / Sales |
5.6x
|
14.5x
|
| Price / FCF |
26.2x
|
58.4x
|
| Revenue Growth YoY |
+3.7%
|
+36.0%
|
| Gross Margin |
60.7%
|
61.9%
|
| Operating Margin |
21.0%
|
53.2%
|
| Return on Equity |
7.1%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.81%
|
1.71%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Danaher Corporation operates in the healthcare sector, specifically in medical diagnostics and research, delivering high-quality products with a durable competitive moat supported by strong margins and consistent earnings growth. The company trades at a trailing and forward P/E of 37.76, which is relatively high but justified by its stable revenue growth of 3.7% and earnings growth of 7.9% in the…
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 |
DHR |
TSM |
| Zone Low |
$158.66 |
$445.59 |
| Zone High |
$179.81 |
$505.00 |
| In Buy Zone? |
No
|
Yes
|