PYPL vs TSM: Which Is the Better Buy?
Side-by-side comparison of PayPal Holdings, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-23.
PayPal Holdings, Inc. · Financial Services
$52.71
+9.1% upside to fair value
Med Conviction
Grade B-
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+13.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
PYPL |
TSM |
| Current Price |
$52.71 |
$452.00 |
| Fair Value Estimate |
$57.50 |
$515.00 |
| Upside to Fair Value |
+9.1%
|
+13.9%
|
| Market Cap |
$45.1B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
6.8x
|
19.2x
|
| Price / Sales |
1.3x
|
0.5x
|
| Price / FCF |
7.2x
|
2.1x
|
| Revenue Growth YoY |
+4.8%
|
+36.0%
|
| Gross Margin |
45.8%
|
64.2%
|
| Operating Margin |
18.8%
|
56.0%
|
| Return on Equity |
24.4%
|
39.3%
|
| Dividend Yield |
1.06% |
0.96% |
| FCF Yield |
13.97%
|
47.62%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
PayPal operates a global digital-payments platform spanning branded checkout, Venmo, Braintree merchant processing, credit products and fraud-risk infrastructure across approximately 200 markets. Business quality is medium: its two-sided network, trusted brand, broad merchant distribution and risk capabilities remain meaningful assets, but its highest-value branded-checkout franchise is under com…
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 |
PYPL |
TSM |
| Zone Low |
$43.12 |
$386.25 |
| Zone High |
$48.88 |
$437.75 |
| In Buy Zone? |
No
|
No
|