WallStSmart

ePlus inc (PLUS)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 170366% more annual revenue ($4.10T vs $2.41B). TSM leads profitability with a 46.5% profit margin vs 5.5%. PLUS appears more attractively valued with a PEG of 0.85. TSM earns a higher WallStSmart Score of 84/100 (A-).

PLUS

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 5.5Value: 8.7Quality: 6.8
Piotroski: 4/9Altman Z: 2.99

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

PLUSUndervalued (+43.4%)

Margin of Safety

+43.4%

Fair Value

$148.15

Current Price

$84.69

$63.46 discount

UndervaluedFair: $148.15Overvalued
TSMUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$1399.41

Current Price

$396.06

$1003.35 discount

UndervaluedFair: $1399.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PLUS5 strengths · Avg: 8.0/10
PEG RatioValuation
0.858/10

Growing faster than its price suggests

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
24.6%8/10

Revenue surging 24.6% year-over-year

EPS GrowthGrowth
46.3%8/10

Earnings expanding 46.3% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.04T10/10

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

PLUS2 concerns · Avg: 2.5/10
Profit MarginProfitability
5.5%3/10

5.5% margin — thin

Free Cash FlowQuality
$-88.86M2/10

Negative free cash flow — burning cash

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
60.6x2/10

Trading at 60.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : PLUS

The strongest argument for PLUS centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 24.6% demonstrates continued momentum. PEG of 0.85 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 : PLUS

The primary concerns for PLUS are Profit Margin, Free Cash Flow.

Bear Case : TSM

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

Key Dynamics to Monitor

TSM carries more volatility with a beta of 1.25 — 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 SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (84/100 vs 72/100), backed by strong 46.5% margins and 35.1% revenue growth. PLUS offers better value entry with a 43.4% margin of safety. 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.

ePlus inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

ePlus inc. The company is headquartered in Herndon, Virginia.

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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