NFLX vs TSM: Which Is the Better Buy?
Side-by-side comparison of Netflix, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Netflix, Inc. · Communication Services
$73.68
+45.0% 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
NFLX trades at a lower forward P/E
(23.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
NFLX |
TSM |
| Current Price |
$73.68 |
$409.74 |
| Fair Value Estimate |
$106.84 |
$594.12 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$310.2B |
$2,125.1B |
| Forward P/E |
23.3x
|
38.8x
|
| EV / EBITDA |
9.2x
|
17.6x
|
| Price / Sales |
6.6x
|
14.5x
|
| Price / FCF |
26.1x
|
58.4x
|
| Revenue Growth YoY |
+16.2%
|
+36.0%
|
| Gross Margin |
49.0%
|
61.9%
|
| Operating Margin |
29.7%
|
53.2%
|
| Return on Equity |
49.2%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.83%
|
1.71%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Netflix, Inc. operates as a leading global streaming entertainment service, delivering a wide variety of TV series, documentaries, and feature films across multiple genres and languages. The company exhibits high business quality with a durable competitive moat supported by strong brand recognition, intangible assets, and network effects. Its recent financial performance shows robust earnings gro…
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 |
NFLX |
TSM |
| Zone Low |
$80.13 |
$445.59 |
| Zone High |
$90.81 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|