It opened up a completely new market, as items that previously only had a small vendor / disenchant value suddenly had cosmetic value as well.
Since the release of transmog in patch 4.3.0 a large number of players have tried to ensure they look their best. Regardless of your own personal thoughts on transmog, it is hard to argue its success within World of Warcraft.
It may seem daunting at first but I will give you some helpful advice on how to get started on your gold making journey! It is available to almost any player regardless of level of gold making experience. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.In this first article I will be discussing transmog farming. On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. After all, we are in a major chip shortage and the stock does not seem to adequately reflect this. The bottom line here is that investors should expect a major turnaround in TSM stock. After all, that is only 49% over its previous peak – so it does not seem so unthinkable. I suspect the market is slowly starting to realize this and will adjust the price soon. That is all if the company’s FCF margins rise from 17% last year to about 31% this year. That still brings a potential market cap of $978 million, or 96% over today’s price. But just to be conservative, let’s assume the market will not do this, but use a higher 2.5% FCF yield. In other words, theoretically TSM stock could be worth 2.5x the price today if we use the same 1.75% FCF yield metric. That represents a potential gain of 150% in the stock price. Therefore, if we divide our $22.46 billion FCF estimate by the 1.75 FCF yield metric, the target market value is $1,386 billion (i.e., $1.386 trillion). Right now the stock is valued at about a 1.75% FCF yield (i.e., $9.77 billion in FCF / $555 billion market capitalization). That implies a huge gain in the stock price is coming. Therefore, using analysts’ 2022 revenue forecast of $72.68 billion in revenue in 2022, its FCF will be $22.46 billion this year. This is slightly less than the 32.55% Q4 margin, but we can assume that it will last throughout 2022. This means that we can assume that the Q1 FCF margin will be 71.8% of its new guidance of 42% to 44% for Q1. For example, its Q4 FCF margin was 32.55%, and the op margin was 41.7% - i.e., the FCF/Op Margin ratio is 78.1%.
So, do you see the pattern here? We can estimate its Q1 free cash flow by assuming that the relationship between operational margin and FCF margin in Q4 holds up. Last quarter it beat its own guidance of a 39% to 41% operating margin guidance, achieving a 41.7% operation margin. More importantly, it reports that its guidance is for an operating margin of 42% to 44%.
In fact, the company provides guidance of 5.3% to 9.3% increase in revenue for Q1 on its investor relations website. That likely reflects the premium pricing it is now able to charge and bodes extremely well for 2022.
This was almost twice the rate for the full year. That is pretty good, but the lead is buried in the details.įrom what I can tell (using the NTD data), the chip maker produced a 32.55% FCF margin in the fourth quarter. This represents a very respectable 17.2% of its $56.8 billion in revenue last year. (You can probably tell I don’t like to rely on company statements). This is from my calculations per the information on page 4 of its financial statement - not anything in their earnings release. TSMC produced $9.771 billion in free cash flow (FCF) last year, based on its own dollar/New Taiwan Dollar (NTD) exchange rates. What to Expect at Taiwan Semiconductor Manufacturing