PANW vs TSM: Which Is the Better Buy?
Side-by-side comparison of Palo Alto Networks, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-24.
Palo Alto Networks, Inc. · Technology
$174.41
-0.1% upside to fair value
Grade B
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+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
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
PANW |
TSM |
| Current Price |
$174.41 |
$366.24 |
| Fair Value Estimate |
$174.18 |
$531.05 |
| Upside to Fair Value |
-0.1%
|
+45.0%
|
| Market Cap |
$118.9B |
$1,899.5B |
| Forward P/E |
94.6x
|
27.2x
|
| EV / EBITDA |
52.3x
|
17.3x
|
| Price / Sales |
12.0x
|
12.8x
|
| Price / FCF |
29.2x
|
51.6x
|
| Revenue Growth YoY |
+14.9%
|
+36.5%
|
| Gross Margin |
73.5%
|
61.9%
|
| Operating Margin |
14.4%
|
53.2%
|
| Return on Equity |
15.5%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.42%
|
1.94%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Palo Alto Networks, Inc. is a leading global cybersecurity company specializing in AI-driven security platforms with a strong recurring revenue base exceeding 80% of total revenue. The company benefits from a high gross margin of 73.5% and solid profitability with a net margin of 13.0%, supported by accelerating revenue growth of 14.9% and earnings growth of 61.6% in the most recent quarter. Unde…
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's leading pure-play semiconductor foundry, commanding approximately 60% of the global advanced node foundry market. The company benefits from a durable competitive moat driven by its pioneering foundry model, massive scale, advanced manufacturing capabilities, and strong customer relationships with major technology firms. TSMC…
Accumulation Zones
| Metric |
PANW |
TSM |
| Zone Low |
$130.63 |
$398.29 |
| Zone High |
$148.05 |
$451.39 |
| In Buy Zone? |
No
|
Yes
|