TXN Valuation

Texas Instruments Inc

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181.571

+1.951(1.086%)1D

Overview
Forecast
Valuation
Earnings

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 29.62 is considered Fairly compared with the five-year average of 26.09. The fair price of Texas Instruments Inc (TXN) is between 168.65 to 224.58 according to relative valuation methord.

Relative Value

Fair Zone

168.65-224.58

Current Price：179.62

Fair

29.62

Trailing

Forward

18.82

EV/EBITDA

Texas Instruments Inc. (TXN) has a current EV/EBITDA of 18.82. The 5-year average EV/EBITDA is 18.82. The thresholds are as follows: Strongly Undervalued below 12.54, Undervalued between 12.54 and 15.68, Fairly Valued between 21.97 and 15.68, Overvalued between 21.97 and 25.11, and Strongly Overvalued above 25.11. The current Forward EV/EBITDA of 18.82 falls within the Historic Trend Line -Fairly Valued range.

25.86

EV/EBIT

Texas Instruments Inc. (TXN) has a current EV/EBIT of 25.86. The 5-year average EV/EBIT is 22.96. The thresholds are as follows: Strongly Undervalued below 12.05, Undervalued between 12.05 and 17.50, Fairly Valued between 28.41 and 17.50, Overvalued between 28.41 and 33.86, and Strongly Overvalued above 33.86. The current Forward EV/EBIT of 25.86 falls within the Historic Trend Line -Fairly Valued range.

8.78

Texas Instruments Inc. (TXN) has a current PS of 8.78. The 5-year average PS is 9.25. The thresholds are as follows: Strongly Undervalued below 7.20, Undervalued between 7.20 and 8.22, Fairly Valued between 10.28 and 8.22, Overvalued between 10.28 and 11.30, and Strongly Overvalued above 11.30. The current Forward PS of 8.78 falls within the Historic Trend Line -Fairly Valued range.

20.08

P/OCF

Texas Instruments Inc. (TXN) has a current P/OCF of 20.08. The 5-year average P/OCF is 20.57. The thresholds are as follows: Strongly Undervalued below 15.20, Undervalued between 15.20 and 17.88, Fairly Valued between 23.25 and 17.88, Overvalued between 23.25 and 25.94, and Strongly Overvalued above 25.94. The current Forward P/OCF of 20.08 falls within the Historic Trend Line -Fairly Valued range.

39.95

P/FCF

Texas Instruments Inc. (TXN) has a current P/FCF of 39.95. The 5-year average P/FCF is 44.99. The thresholds are as follows: Strongly Undervalued below 0.97, Undervalued between 0.97 and 22.98, Fairly Valued between 67.00 and 22.98, Overvalued between 67.00 and 89.01, and Strongly Overvalued above 89.01. The current Forward P/FCF of 39.95 falls within the Historic Trend Line -Fairly Valued range.

Texas Instruments Inc (TXN) has a current Price-to-Book (P/B) ratio of 9.95. Compared to its 3-year average P/B ratio of 10.05 , the current P/B ratio is approximately -0.91% higher. Relative to its 5-year average P/B ratio of 11.87, the current P/B ratio is about -16.14% 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 1.64%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.52% , the current FCF yield is about -100.00% lower.

9.95

P/B

Median3y

10.05

Median5y

11.87

0.92

FCF Yield

Median3y

1.64

Median5y

2.52

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 16.38%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

TXN.O

Texas Instruments Inc

Micron Technology Inc

Performance Decomposition

Market capitalization of TXN decreased by 11.07% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.82B to 4.45B.

The secondary factor is the Margin Expansion, contributed -1.29%to the performance.

Overall, the performance of TXN in the past 1 year is driven by Revenue Growth. Which is more sustainable.

16.38%

3.82B → 4.45B

Revenue Growth

-1.29%

29.49 → 29.11

Margin Expansion

-26.16%

44.47 → 32.84

P/E Change

-11.07%