TXN Relative Valuation
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. If the market price exceeds this fair value range, TXN is overvalued; if below, it's undervalued.
Historical Valuation
Texas Instruments Inc (TXN) is now in the Fair zone, suggesting that its current forward PE ratio of 31.24 is considered Fairly compared with the five-year average of 26.35. The fair price of Texas Instruments Inc (TXN) is between 157.44 to 210.43 according to relative valuation methord.
Relative Value
Fair Zone
157.44-210.43
Current Price：180.12
Fair
30.81
PE
1Y
3Y
5Y
Trailing
Forward
19.69
EV/EBITDA
Texas Instruments Inc. (TXN) has a current EV/EBITDA of 19.69. The 5-year average EV/EBITDA is 18.78. The thresholds are as follows: Strongly Undervalued below 12.50, Undervalued between 12.50 and 15.64, Fairly Valued between 21.93 and 15.64, Overvalued between 21.93 and 25.07, and Strongly Overvalued above 25.07. The current Forward EV/EBITDA of 19.69 falls within the Historic Trend Line -Fairly Valued range.
27.12
EV/EBIT
Texas Instruments Inc. (TXN) has a current EV/EBIT of 27.12. The 5-year average EV/EBIT is 23.07. The thresholds are as follows: Strongly Undervalued below 12.12, Undervalued between 12.12 and 17.59, Fairly Valued between 28.54 and 17.59, Overvalued between 28.54 and 34.01, and Strongly Overvalued above 34.01. The current Forward EV/EBIT of 27.12 falls within the Historic Trend Line -Fairly Valued range.
8.88
PS
Texas Instruments Inc. (TXN) has a current PS of 8.88. The 5-year average PS is 9.21. The thresholds are as follows: Strongly Undervalued below 7.12, Undervalued between 7.12 and 8.16, Fairly Valued between 10.25 and 8.16, Overvalued between 10.25 and 11.30, and Strongly Overvalued above 11.30. The current Forward PS of 8.88 falls within the Historic Trend Line -Fairly Valued range.
20.06
P/OCF
Texas Instruments Inc. (TXN) has a current P/OCF of 20.06. The 5-year average P/OCF is 20.54. The thresholds are as follows: Strongly Undervalued below 15.14, Undervalued between 15.14 and 17.84, Fairly Valued between 23.24 and 17.84, Overvalued between 23.24 and 25.94, and Strongly Overvalued above 25.94. The current Forward P/OCF of 20.06 falls within the Historic Trend Line -Fairly Valued range.
31.85
P/FCF
Texas Instruments Inc. (TXN) has a current P/FCF of 31.85. The 5-year average P/FCF is 45.32. The thresholds are as follows: Strongly Undervalued below 1.83, Undervalued between 1.83 and 23.58, Fairly Valued between 67.07 and 23.58, Overvalued between 67.07 and 88.81, and Strongly Overvalued above 88.81. The current Forward P/FCF of 31.85 falls within the Historic Trend Line -Fairly Valued range.
Texas Instruments Inc (TXN) has a current Price-to-Book (P/B) ratio of 9.98. Compared to its 3-year average P/B ratio of 9.97 , the current P/B ratio is approximately 0.08% higher. Relative to its 5-year average P/B ratio of 11.57, the current P/B ratio is about -13.69% higher. Texas Instruments Inc (TXN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.47%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.41% , the current FCF yield is about -100.00% lower.
9.85
P/B
Median3y
9.97
Median5y
11.57
1.25
FCF Yield
Median3y
1.47
Median5y
2.41
Competitors Valuation Multiple
The average P/S ratio for TXN's competitors is , providing a benchmark for relative valuation. Texas Instruments Inc Corp (TXN) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 14.24%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TXN decreased by 2.41% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 4.15B to 4.74B.
The secondary factor is the P/E Change, contributed -4.31%to the performance.
Overall, the performance of TXN in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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