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 2026-07-18.
ServiceNow, Inc. · Technology
$103.24
+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
TSM trades at a lower forward P/E
(38.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
NOW |
TSM |
| Current Price |
$103.24 |
$409.74 |
| Fair Value Estimate |
$149.70 |
$594.12 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$106.5B |
$2,125.1B |
| Forward P/E |
61.1x
|
38.8x
|
| EV / EBITDA |
32.9x
|
17.6x
|
| Price / Sales |
7.6x
|
14.5x
|
| Price / FCF |
23.0x
|
58.4x
|
| Revenue Growth YoY |
+22.1%
|
+36.0%
|
| Gross Margin |
76.6%
|
61.9%
|
| Operating Margin |
13.4%
|
53.2%
|
| Return on Equity |
15.0%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.35%
|
1.71%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
ServiceNow, Inc. operates in the technology sector specializing in software applications, delivering high-quality enterprise cloud solutions with a durable competitive moat evidenced by a 15% return on equity and strong gross margins of 76.6%. The company is currently in an investing growth phase with 22.1% revenue growth in the most recent quarter, although earnings growth is modest at 2.0%. Des…
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 |
NOW |
TSM |
| Zone Low |
$112.27 |
$445.59 |
| Zone High |
$127.24 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|