NOW vs TSM: Which Is the Better Buy?
Side-by-side comparison of ServiceNow, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-23.
ServiceNow, Inc. · Technology
$139.82
+16.2% upside to fair value
Med Conviction
Grade A-
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
NOW has more upside to fair value
(+16.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
NOW |
TSM |
| Current Price |
$139.82 |
$452.00 |
| Fair Value Estimate |
$162.50 |
$515.00 |
| Upside to Fair Value |
+16.2%
|
+13.9%
|
| Market Cap |
$144.6B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
43.1x
|
19.2x
|
| Price / Sales |
9.8x
|
0.5x
|
| Price / FCF |
31.5x
|
2.1x
|
| Revenue Growth YoY |
+24.0%
|
+36.0%
|
| Gross Margin |
74.8%
|
64.2%
|
| Operating Margin |
11.4%
|
56.0%
|
| Return on Equity |
13.8%
|
39.3%
|
| Dividend Yield |
0% |
0.96% |
| FCF Yield |
3.17%
|
47.62%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
ServiceNow provides a cloud-based enterprise workflow platform spanning IT service management, operations, employee workflows, CRM, AI orchestration and security. Business quality is high because its common data model, deeply embedded workflows and cross-department deployments create meaningful switching costs, while roughly 90% of the Fortune 500 use the platform and more than 85 billion workflo…
Taiwan Semiconductor Manufacturing Company is the world's largest contract chipmaker, manufacturing advanced logic, mixed-signal, RF, and embedded memory wafers for high-performance computing, smartphones, IoT, and automotive customers from a base of 65,152 employees headquartered in Hsinchu, Taiwan. The business quality is exceptionally high: TTM gross margin is 64.2%, TTM operating margin is 56…
Accumulation Zones
| Metric |
NOW |
TSM |
| Zone Low |
$121.88 |
$386.25 |
| Zone High |
$138.12 |
$437.75 |
| In Buy Zone? |
No
|
No
|