WallStSmart

Paymentus Holdings, Inc. (PAY)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 342890% more annual revenue ($4.10T vs $1.20B). TSM leads profitability with a 46.5% profit margin vs 5.6%. TSM trades at a lower P/E of 33.7x. TSM earns a higher WallStSmart Score of 84/100 (A-).

PAY

Buy

52

out of 100

Grade: C-

Growth: 9.3Profit: 5.5Value: 5.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.56

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

PAYUndervalued (+65.5%)

Margin of Safety

+65.5%

Fair Value

$71.02

Current Price

$28.05

$42.97 discount

UndervaluedFair: $71.02Overvalued
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

PAY4 strengths · Avg: 9.5/10
EPS GrowthGrowth
51.7%10/10

Earnings expanding 51.7% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.5610/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
28.1%8/10

Revenue surging 28.1% year-over-year

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

PAY3 concerns · Avg: 2.7/10
Profit MarginProfitability
5.6%3/10

5.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
53.8x2/10

Premium valuation, high expectations priced in

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 : PAY

The strongest argument for PAY centers on EPS Growth, Debt/Equity, Altman Z-Score. Revenue growth of 28.1% 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : PAY

The primary concerns for PAY are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 53.8x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

PAY carries more volatility with a beta of 1.44 — 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 - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (84/100 vs 52/100), backed by strong 46.5% margins and 35.1% revenue growth. PAY offers better value entry with a 65.5% 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.

Paymentus Holdings, Inc.

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Paymentus Holdings, Inc. provides electronic bill submission and payment services. The company is headquartered in Redmond, Washington with additional offices in the United States, Canada, and India.

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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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