TXN PE Ratio & Valuation, Is TXN Overvalued

Historical Valuation

Texas Instruments Inc (TXN) is now in the Fair zone, suggesting that its current forward PE ratio of 30.37 is considered Fairly compared with the five-year average of 26.65. The fair price of Texas Instruments Inc (TXN) is between 174.96 to 235.60 according to relative valuation method.

Relative Value

Fair Zone

174.96-235.60

Current Price：199.55

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Texas Instruments Inc (TXN) has a current Price-to-Book (P/B) ratio of 9.71. Compared to its 3-year average P/B ratio of 9.89, the current P/B ratio is approximately -1.85% higher. Relative to its 5-year average P/B ratio of 11.22, the current P/B ratio is about -13.51% higher. Texas Instruments Inc (TXN) has a Forward Free Cash Flow (FCF) yield of approximately 1.29%. Compared to its 3-year average FCF yield of 1.25%, the current FCF yield is approximately 3.53% lower. Relative to its 5-year average FCF yield of 2.34%, the current FCF yield is about -44.82% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for TXN competitors is 10.32, providing a benchmark for relative valuation. Texas Instruments Inc Corp (TXN.O) exhibits a P/S ratio of 8.64, which is -16.28% above the industry average. Given its robust revenue growth of 10.38%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of TXN increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of TXN in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is TXN currently overvalued or undervalued?

What is Texas Instruments Inc (TXN) fair value?

TXN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Texas Instruments Inc (TXN) is between 174.96 to 235.60 according to relative valuation method.

How does TXN's valuation metrics compare to the industry average?

The average P/S ratio for TXN's competitors is 10.32, providing a benchmark for relative valuation. Texas Instruments Inc Corp (TXN) exhibits a P/S ratio of 8.64, which is -16.28% above the industry average. Given its robust revenue growth of 10.38%, this premium appears unsustainable.

What is the current P/B ratio for Texas Instruments Inc (TXN) as of Mar 11 2026?

As of Mar 11 2026, Texas Instruments Inc (TXN) has a P/B ratio of 9.71. This indicates that the market values TXN at 9.71 times its book value.

What is the current FCF Yield for Texas Instruments Inc (TXN) as of Mar 11 2026?

As of Mar 11 2026, Texas Instruments Inc (TXN) has a FCF Yield of 1.29%. This means that for every dollar of Texas Instruments Inc's market capitalization, the company generates 1.29 cents in free cash flow.

What is the current Forward P/E ratio for Texas Instruments Inc (TXN) as of Mar 11 2026?

As of Mar 11 2026, Texas Instruments Inc (TXN) has a Forward P/E ratio of 30.37. This means the market is willing to pay $30.37 for every dollar of Texas Instruments Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Texas Instruments Inc (TXN) as of Mar 11 2026?

As of Mar 11 2026, Texas Instruments Inc (TXN) has a Forward P/S ratio of 8.64. This means the market is valuing TXN at $8.64 for every dollar of expected revenue over the next 12 months.

TXN Valuation