WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 1073% more annual revenue ($4.44T vs $378.41B). TSM leads profitability with a 49.9% profit margin vs 30.4%. TSM appears more attractively valued with a PEG of 0.91. TSM earns a higher WallStSmart Score of 86/100 (A).

PAYP

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 8.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 0.84

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

Intrinsic value data unavailable for PAYP.

TSMUndervalued (+55.0%)

Margin of Safety

+55.0%

Fair Value

$897.55

Current Price

$406.11

$491.44 discount

UndervaluedFair: $897.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAYP4 strengths · Avg: 9.0/10
Return on EquityProfitability
39.1%10/10

Every $100 of equity generates 39 in profit

Profit MarginProfitability
30.4%10/10

Keeps 30 of every $100 in revenue as profit

P/E RatioValuation
14.2x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
29.1%8/10

Revenue surging 29.1% year-over-year

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

PAYP4 concerns · Avg: 2.8/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

Debt/EquityHealth
1.463/10

Elevated debt levels

Free Cash FlowQuality
$-98.87B2/10

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
35.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
84.6x2/10

Trading at 84.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : PAYP

The strongest argument for PAYP centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 30.4% and operating margin at 18.8%. Revenue growth of 29.1% 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : PAYP

The primary concerns for PAYP are PEG Ratio, Debt/Equity, Free Cash Flow.

Bear Case : TSM

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

Key Dynamics to Monitor

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

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

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

Bottom Line

TSM scores higher overall (86/100 vs 72/100), backed by strong 49.9% margins and 36.0% 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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