WallStSmart

Coherent Inc (COHR)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 62061% more annual revenue ($4.10T vs $6.60B). TSM leads profitability with a 46.5% profit margin vs 7.1%. COHR appears more attractively valued with a PEG of 0.92. TSM earns a higher WallStSmart Score of 84/100 (A-).

COHR

Buy

56

out of 100

Grade: C

Growth: 7.3Profit: 5.0Value: 4.0Quality: 6.3
Piotroski: 5/9Altman Z: 1.53

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COHRSignificantly Overvalued (-24.4%)

Margin of Safety

-24.4%

Fair Value

$179.88

Current Price

$379.69

$199.81 premium

UndervaluedFair: $179.88Overvalued
TSMUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$1391.51

Current Price

$404.54

$986.97 discount

UndervaluedFair: $1391.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COHR4 strengths · Avg: 8.8/10
EPS GrowthGrowth
73.0%10/10

Earnings expanding 73.0% YoY

Market CapQuality
$62.45B9/10

Large-cap with strong market position

PEG RatioValuation
0.928/10

Growing faster than its price suggests

Revenue GrowthGrowth
20.5%8/10

Revenue surging 20.5% year-over-year

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.14T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

COHR4 concerns · Avg: 3.5/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Return on EquityProfitability
4.7%3/10

ROE of 4.7% — below average capital efficiency

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
35.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
61.9x2/10

Trading at 61.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : COHR

The strongest argument for COHR centers on EPS Growth, Market Cap, PEG Ratio. Revenue growth of 20.5% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : COHR

The primary concerns for COHR are Price/Book, Altman Z-Score, Return on Equity. A P/E of 151.3x leaves little room for execution misses.

Bear Case : TSM

The primary concerns for TSM are P/E Ratio, Price/Book.

Key Dynamics to Monitor

COHR carries more volatility with a beta of 2.05 — expect wider price swings.

TSM is growing revenue faster at 35.1% — sustainability is the question.

TSM generates stronger free cash flow (377.1B), providing more financial flexibility.

Monitor SCIENTIFIC & TECHNICAL INSTRUMENTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (84/100 vs 56/100), backed by strong 46.5% margins and 35.1% revenue growth. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Coherent Inc

TECHNOLOGY · SCIENTIFIC & TECHNICAL INSTRUMENTS · USA

Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a variety of scientific, commercial, and industrial research applications. The company is headquartered in Santa Clara, California.

Taiwan Semiconductor Manufacturing

TECHNOLOGY · SEMICONDUCTORS · USA

Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.

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