Texas Instruments Incorporated

SNSE:TXN Stock Report

Market Cap: US$180.6b

Texas Instruments Valuation

Is TXN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TXN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TXN ($173.55) is trading above our estimate of fair value ($149.42)

Significantly Below Fair Value: TXN is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TXN?

Key metric: As TXN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TXN. This is calculated by dividing TXN's market cap by their current earnings.
What is TXN's PE Ratio?
PE Ratio36.6x
EarningsUS$4.94b
Market CapUS$180.62b

Price to Earnings Ratio vs Peers

How does TXN's PE Ratio compare to its peers?

The above table shows the PE ratio for TXN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average74.5x
QCOM QUALCOMM
17.2x7.1%US$174.2b
AMD Advanced Micro Devices
123x40.5%US$224.5b
MU Micron Technology
146.3x31.5%US$113.8b
A000660 SK hynix
11.7x35.3%₩121.6t
TXN Texas Instruments
36.6x15.3%US$180.6b

Price-To-Earnings vs Peers: TXN is good value based on its Price-To-Earnings Ratio (36.6x) compared to the peer average (74.5x).

Price to Earnings Ratio vs Industry

How does TXN's PE Ratio compare vs other companies in the Global Semiconductor Industry?

13 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TXN 36.6xIndustry Avg. 31.2xNo. of Companies89PE020406080100+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TXN is expensive based on its Price-To-Earnings Ratio (36.6x) compared to the Global Semiconductor industry average (31.2x).

Price to Earnings Ratio vs Fair Ratio

What is TXN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TXN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TXN's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TXN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$173.55
US$208.52
+20.2%
16.3%US$298.00US$140.00n/a29
Nov ’25US$173.55
US$208.29
+20.0%
16.6%US$298.00US$140.00n/a28
Oct ’25US$173.55
US$206.78
+19.1%
16.4%US$268.00US$115.00n/a28
Sep ’25US$173.55
US$208.24
+20.0%
16.6%US$268.00US$115.00n/a28
Aug ’25US$173.55
US$203.88
+17.5%
17.2%US$255.00US$115.00n/a28
Jul ’25US$173.55
US$180.51
+4.0%
14.9%US$230.00US$115.00n/a29
Jun ’25US$173.55
US$178.79
+3.0%
13.9%US$225.00US$115.00n/a29
May ’25US$173.55
US$176.53
+1.7%
13.8%US$225.00US$115.00n/a28
Apr ’25US$173.55
US$169.10
-2.6%
15.0%US$210.00US$109.00n/a28
Mar ’25US$173.55
US$167.96
-3.2%
14.5%US$210.00US$109.00n/a28
Feb ’25US$173.55
US$168.61
-2.8%
14.6%US$210.00US$109.00n/a28
Jan ’25US$173.55
US$164.54
-5.2%
13.9%US$210.00US$120.00n/a28
Dec ’24US$173.55
US$163.74
-5.7%
14.1%US$210.00US$120.00n/a28
Nov ’24US$173.55
US$163.74
-5.7%
14.1%US$210.00US$120.00US$173.5528
Oct ’24US$173.55
US$184.75
+6.5%
12.0%US$230.00US$130.00US$173.5529
Sep ’24US$173.55
US$184.87
+6.5%
12.2%US$230.00US$130.00US$173.5528
Aug ’24US$173.55
US$184.87
+6.5%
12.2%US$230.00US$130.00US$173.5528
Jul ’24US$173.55
US$181.37
+4.5%
13.0%US$230.00US$130.00US$173.5527
Jun ’24US$173.55
US$181.37
+4.5%
13.0%US$230.00US$130.00US$173.5527
May ’24US$173.55
US$181.83
+4.8%
12.9%US$230.00US$130.00US$173.5528
Apr ’24US$173.55
US$183.63
+5.8%
12.3%US$230.00US$135.00US$173.5529
Mar ’24US$173.55
US$183.63
+5.8%
12.3%US$230.00US$135.00US$173.5529
Feb ’24US$173.55
US$182.84
+5.4%
11.8%US$230.00US$135.00US$173.5529
Jan ’24US$173.55
US$173.91
+0.2%
12.9%US$230.00US$140.00US$173.5529
Dec ’23US$173.55
US$172.53
-0.6%
12.7%US$230.00US$140.00US$173.5529
Nov ’23US$173.55
US$170.87
-1.5%
13.2%US$230.00US$127.00US$173.5529

Analyst Forecast: Target price is less than 20% higher than the current share price.

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7D

0%

1Y

n/a