WallStSmart

Infosys Ltd ADR (INFY)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 21775% more annual revenue ($4.44T vs $20.30B). TSM leads profitability with a 49.9% profit margin vs 16.4%. TSM appears more attractively valued with a PEG of 0.91. TSM earns a higher WallStSmart Score of 86/100 (A).

INFY

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 9.0Value: 7.3Quality: 8.0
Piotroski: 4/9Altman Z: 4.57

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INFYUndervalued (+84.0%)

Margin of Safety

+84.0%

Fair Value

$98.55

Current Price

$12.53

$86.02 discount

UndervaluedFair: $98.55Overvalued
TSMUndervalued (+55.0%)

Margin of Safety

+55.0%

Fair Value

$897.55

Current Price

$420.04

$477.51 discount

UndervaluedFair: $897.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INFY6 strengths · Avg: 9.2/10
Return on EquityProfitability
34.6%10/10

Every $100 of equity generates 35 in profit

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5710/10

Safe zone — low bankruptcy risk

Market CapQuality
$51.03B9/10

Large-cap with strong market position

P/E RatioValuation
15.2x8/10

Attractively priced relative to earnings

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.09T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

INFY3 concerns · Avg: 4.0/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

Price/BookValuation
10.5x4/10

Trading at 10.5x book value

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
87.5x2/10

Trading at 87.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : INFY

The strongest argument for INFY centers on Return on Equity, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 16.4% and operating margin at 21.2%.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : INFY

The primary concerns for INFY are PEG Ratio, Price/Book, Revenue Growth.

Bear Case : TSM

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

Key Dynamics to Monitor

INFY profiles as a value stock while TSM is a growth play — different risk/reward profiles.

TSM carries more volatility with a beta of 1.25 — expect wider price swings.

TSM is growing revenue faster at 36.0% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 54/100), backed by strong 49.9% margins and 36.0% revenue growth. INFY offers better value entry with a 84.0% margin of safety. 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.

Infosys Ltd ADR

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Infosys Limited offers next generation digital consulting, technology, outsourcing and services in North America, Europe, India and internationally. The company is headquartered in Bengaluru, India.

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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