## TSM PE Stream Chart Analysis **Current Valuation (Latest Data Point):** As of the latest data point (mid-March 2026), TSM's monthly average price stands at approximately **$339.57**, positioning the stock within the **"Fair Value" interval** — trading above the 3.5x PE boundary (priced at ~$294.77) but below the 4.4x PE boundary (priced at ~$367.02). This places TSM comfortably between the third and fourth PE stream bands, suggesting a **fair-to-reasonable valuation** rather than extreme overvaluation or undervaluation. The stock is notably well above the lowest PE boundary of 1.8x (~$151.12) and the 2.7x boundary (~$222.53), confirming that deep undervaluation levels are far behind. At the same time, it remains below the 5.3x (~$438.43) and 6.2x (~$510.67) upper warning boundaries, indicating the market has not yet priced TSM into severely overvalued territory. **Historical Valuation Trend:** From early 2021 through mid-2022, TSM traded primarily within the **"Value" to "Fair Value" interval** (between the 1.8x and 3.5x PE bands), with monthly average prices ranging from roughly $78 to $121 — reflecting a period of moderate, grounded valuation. The sharp market correction through 2022 pushed the stock price down toward and briefly below the 1.8x PE boundary (which itself was rising due to earnings growth), briefly touching **"Undervalued"** territory around late 2022 when prices dipped to the low $60s while the 1.8x band was near $62 — a historically rare and significant buying signal. From early 2023 onward, TSM began a sustained re-rating upward: prices recovered through the "Value" zone and crossed into the **"Fair Value" and "Watch" intervals** by mid-to-late 2024, as monthly average prices climbed from ~$83 to over $187. The most notable valuation expansion occurred from late 2024 through early 2026, driven by strong earnings growth that simultaneously lifted all PE band boundaries upward — a clear sign of **fundamental earnings expansion** rather than pure multiple expansion. By Q1'26, the stock has settled into the **3.5x–4.4x "Fair Value" interval**, suggesting the market is pricing TSM at a historically reasonable multiple relative to its growing earnings base. The overall PE river trend has been **consistently upward-sloping**, reflecting robust and accelerating earnings growth, which makes TSM well-suited for PE stream analysis as a structurally profitable, industry-leading semiconductor company.