WallStSmart

PayPay Corporation American Depository Shares (PAYP)vsTaiwan Semiconductor Manufacturing (TSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 1131% more annual revenue ($4.94T vs $401.59B). TSM leads profitability with a 51.1% profit margin vs 30.6%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).

PAYP

Strong Buy

78

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.84

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 8.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PAYP.

TSMUndervalued (+55.1%)

Margin of Safety

+55.1%

Fair Value

$979.05

Current Price

$406.13

$572.92 discount

UndervaluedFair: $979.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAYP6 strengths · Avg: 8.8/10
Profit MarginProfitability
30.6%10/10

Keeps 31 of every $100 in revenue as profit

EPS GrowthGrowth
62.2%10/10

Earnings expanding 62.2% YoY

Return on EquityProfitability
29.8%9/10

Every $100 of equity generates 30 in profit

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Revenue GrowthGrowth
27.0%8/10

Revenue surging 27.0% year-over-year

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.27T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
51.1%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
58.7%10/10

Strong operational efficiency at 58.7%

Revenue GrowthGrowth
50.9%10/10

Revenue surging 50.9% year-over-year

EPS GrowthGrowth
68.7%10/10

Earnings expanding 68.7% YoY

Areas to Watch

PAYP4 concerns · Avg: 2.8/10
PEG RatioValuation
1.784/10

Expensive relative to growth rate

Debt/EquityHealth
1.853/10

Elevated debt levels

Free Cash FlowQuality
$-60.13B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.842/10

Distress zone — elevated risk

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
28.3x4/10

Moderate valuation

Price/BookValuation
77.5x2/10

Trading at 77.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : PAYP

The strongest argument for PAYP centers on Profit Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 30.6% and operating margin at 27.4%. Revenue growth of 27.0% demonstrates continued momentum.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.

Bear Case : PAYP

The primary concerns for PAYP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.85 is elevated, increasing financial risk.

Bear Case : TSM

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

Key Dynamics to Monitor

TSM is growing revenue faster at 50.9% — sustainability is the question.

TSM generates stronger free cash flow (510.1B), providing more financial flexibility.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (86/100 vs 78/100), backed by strong 51.1% margins and 50.9% revenue growth. Both earn "Exceptional Buy" and "Strong 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.

PayPay Corporation American Depository Shares

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

PayPay Corporation, a financial technology company, provides a digital finance platform with services that inlclude easy-to-use payments and other financial services in Japan. The company is headquartered in Shinjuku, Japan.

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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