TSLA vs TSM: Which Is the Better Buy?
Side-by-side comparison of Tesla, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
Tesla, Inc. · Consumer Cyclical
$372.11
+45.0% upside to fair value
Med Conviction
Grade C
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TSLA has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
TSLA |
TSM |
| Current Price |
$372.11 |
$452.00 |
| Fair Value Estimate |
$539.56 |
$515.00 |
| Upside to Fair Value |
+45.0%
|
+13.9%
|
| Market Cap |
$1,469.7B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
121.7x
|
19.2x
|
| Price / Sales |
14.2x
|
0.5x
|
| Price / FCF |
209.1x
|
2.1x
|
| Revenue Growth YoY |
+25.5%
|
+36.0%
|
| Gross Margin |
18.9%
|
64.2%
|
| Operating Margin |
4.2%
|
56.0%
|
| Return on Equity |
4.6%
|
39.3%
|
| Dividend Yield |
0% |
0.96% |
| FCF Yield |
0.48%
|
47.62%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Tesla, Inc. designs, manufactures and sells electric vehicles and energy generation and storage systems, operating through Automotive and Energy Generation and Storage segments with 134,785 full-time employees and a market capitalization of $1,469.67 billion at a share price of $372.11. The business quality is mixed: revenue grew 25.5% year over year in the most recent quarter, but earnings fell …
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 |
TSLA |
TSM |
| Zone Low |
$404.67 |
$386.25 |
| Zone High |
$458.63 |
$437.75 |
| In Buy Zone? |
Yes
|
No
|