WallStSmart

Pagerduty Inc (PD)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 897453% more annual revenue ($4.44T vs $494.73M). TSM leads profitability with a 49.9% profit margin vs 37.5%. PD trades at a lower P/E of 6.7x. TSM earns a higher WallStSmart Score of 86/100 (A).

PD

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 7.5Value: 8.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.59

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

PDUndervalued (+81.2%)

Margin of Safety

+81.2%

Fair Value

$37.79

Current Price

$14.09

$23.70 discount

UndervaluedFair: $37.79Overvalued
TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PD3 strengths · Avg: 10.0/10
P/E RatioValuation
6.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
85.8%10/10

Every $100 of equity generates 86 in profit

Profit MarginProfitability
37.5%10/10

Keeps 38 of every $100 in revenue as profit

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

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

PD4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Market CapQuality
$1.07B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.783/10

Elevated debt levels

EPS GrowthGrowth
-40.0%2/10

Earnings declined 40.0%

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.6x2/10

Trading at 88.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : PD

The strongest argument for PD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 37.5% and operating margin at 8.2%.

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 : PD

The primary concerns for PD are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.78 is elevated, increasing financial risk.

Bear Case : TSM

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

Key Dynamics to Monitor

PD 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 48/100), backed by strong 49.9% margins and 36.0% revenue growth. PD offers better value entry with a 81.2% margin of safety. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Pagerduty Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

PagerDuty, Inc. operates a digital operations management platform in the United States and internationally. The company is headquartered in San Francisco, California.

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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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