TSM vs V: Which Is the Better Buy?
Side-by-side comparison of Taiwan Semiconductor Manufacturing Company Limited and Visa Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-20.
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+45.0% upside to fair value
Grade C
High Quality
VS
Visa Inc. · Financial Services
$304.36
+45.0% upside to fair value
High Conviction
Grade A-
QuantHub Verdict
V trades at a lower forward P/E
(23.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
TSM |
V |
| Current Price |
$366.24 |
$304.36 |
| Fair Value Estimate |
$531.05 |
$441.32 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$1,899.5B |
$586.8B |
| Forward P/E |
27.2x
|
23.7x
|
| EV / EBITDA |
17.3x
|
22.3x
|
| Price / Sales |
12.8x
|
14.2x
|
| Price / FCF |
51.6x
|
25.6x
|
| Revenue Growth YoY |
+36.5%
|
+11.3%
|
| Gross Margin |
61.9%
|
81.08%
|
| Operating Margin |
53.2%
|
59.18%
|
| Return on Equity |
36.9%
|
54.22%
|
| Dividend Yield |
0% |
0.83% |
| FCF Yield |
1.94%
|
3.91%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
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…
Visa is the world's dominant payment network with $40B in net revenue (FY2025), 50%+ net margins, and a capital-light toll-booth model processing $14.2T in annual payment volume across 257.5B transactions. The business compounds at 10-12% revenue CAGR with operating leverage pushing EPS growth to 12-15% over a cycle, funded by $21.6B in annual free cash flow against only $1.5B in capex. At 28.0x …
Accumulation Zones
| Metric |
TSM |
V |
| Zone Low |
$398.29 |
$330.99 |
| Zone High |
$451.39 |
$375.12 |
| In Buy Zone? |
Yes
|
Yes
|