Financial Analysis and Investment Choice of TSMC, Bank of America and American Express

Abstract

This paper presents a punctilious financial analysis of Taiwan Semiconductor Manufacturing Company, Bank of America and American Express respectively in the semiconductor industry, bank and financial service. The investigation encompasses an analysis of recent financial indicators from the perspectives of risk assessment, profitability, and market ratio. This step will list the financial performances of these companies by reference to financial statement from Yahoo Finance including Beta, Total Debt Ratio, TAT, Profit Margin, ROA, ROE and P/E, P/B ratio etc. Then, this paper will give an exploration of asset selection challenges faced by nine distinct investor profiles including Value, Income, PEG, Index, Ratio analysis, DCF, Momentum, Insider buying Smart money and Stock buyback investors. In terms of the overall performance in the risk, profitability, and market ratio, TSMC seems to be the best choice. However, BAC can still be a choice for value investors. Leveraging established financial models, the research reveals that Momentum, Insider Buying, Smart Money and Stock Buyback investors are inclined to invest in all three stocks. This paper will also provide useful reference for the further investment analysis about these three companies.