Texas Instruments Incorporated

BIT:1TXN Stock Report

Market Cap: €118.5b

Texas Instruments Valuation

Is 1TXN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 1TXN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€113.31
Fair Value
14.0% overvalued intrinsic discount
29
Number of Analysts

Below Fair Value: 1TXN (€129.14) is trading above our estimate of fair value (€113.31)

Significantly Below Fair Value: 1TXN is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1TXN?

Key metric: As 1TXN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1TXN. This is calculated by dividing 1TXN's market cap by their current earnings.
What is 1TXN's PE Ratio?
PE Ratio28.3x
EarningsUS$4.78b
Market CapUS$135.07b

Price to Earnings Ratio vs Peers

How does 1TXN's PE Ratio compare to its peers?

The above table shows the PE ratio for 1TXN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.2x
QCOM QUALCOMM
14.3x5.6%US$150.3b
AMD Advanced Micro Devices
86.2x31.9%US$141.4b
ADI Analog Devices
55.9x24.8%US$87.4b
MU Micron Technology
16.5x26.8%US$76.9b
1TXN Texas Instruments
28.3x12.4%€135.1b

Price-To-Earnings vs Peers: 1TXN is good value based on its Price-To-Earnings Ratio (28.3x) compared to the peer average (43.2x).

Price to Earnings Ratio vs Industry

How does 1TXN's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1TXN 28.3xIndustry Avg. 15.3xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1TXN is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the European Semiconductor industry average (15.3x).

Price to Earnings Ratio vs Fair Ratio

What is 1TXN'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.

1TXN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.3x
Fair PE Ratio52x

Price-To-Earnings vs Fair Ratio: 1TXN is good value based on its Price-To-Earnings Ratio (28.3x) compared to the estimated Fair Price-To-Earnings Ratio (52x).

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 1TXN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€129.14
€174.55
+35.2%
17.2%€249.69€114.30n/a29
Apr ’26€163.60
€192.91
+17.9%
16.4%€267.64€122.51n/a29
Mar ’26€187.16
€195.65
+4.5%
16.6%€270.65€123.89n/a28
Feb ’26€181.48
€196.05
+8.0%
16.6%€270.68€123.90n/a29
Jan ’26€180.30
€198.72
+10.2%
16.2%€283.58€133.22n/a29
Dec ’25€191.24
€200.24
+4.7%
16.3%€286.17€134.44n/a29
Nov ’25€190.24
€192.56
+1.2%
16.6%€275.50€129.43n/a28
Oct ’25€181.22
€185.23
+2.2%
16.4%€240.07€103.02n/a28
Sep ’25€192.38
€186.71
-2.9%
16.6%€240.29€103.11n/a28
Aug ’25€184.82
€188.94
+2.2%
17.2%€236.31€106.57n/a28
Jul ’25€180.16
€168.82
-6.3%
14.9%€215.10€107.55n/a29
Jun ’25€177.02
€165.38
-6.6%
13.9%€208.13€106.38n/a29
May ’25€167.14
€165.38
-1.1%
13.8%€210.78€107.73n/a28
Apr ’25€161.30
€154.79
-4.0%
15.0%€192.23€99.78€163.6028
Mar ’25€156.72
€155.71
-0.6%
14.5%€194.69€101.05€187.1628
Feb ’25€145.14
€155.13
+6.9%
14.6%€193.20€100.28€181.4828
Jan ’25€155.30
€150.72
-2.9%
13.9%€192.36€109.92€180.3028
Dec ’24€141.86
€151.00
+6.4%
14.1%€193.66€110.66€191.2428
Nov ’24€134.28
€154.22
+14.9%
14.1%€197.80€113.03€190.2428
Oct ’24€150.92
€173.30
+14.8%
12.0%€215.74€121.94€181.2229
Sep ’24€156.76
€170.00
+8.4%
12.2%€211.51€119.55€192.3828
Aug ’24€162.76
€167.69
+3.0%
12.2%€208.63€117.92€184.8228
Jul ’24€164.34
€168.67
+2.6%
13.0%€213.90€120.90€180.1627
Jun ’24€162.76
€168.67
+3.6%
13.0%€213.90€120.90€177.0227
May ’24€150.62
€165.01
+9.6%
12.9%€208.73€117.98€167.1428
Apr ’24€170.50
€170.10
-0.2%
12.3%€213.05€125.05€161.3029
AnalystConsensusTarget
Consensus Narrative from 29 Analysts
€172.72
Fair Value
25.2% undervalued intrinsic discount
29
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/20 05:49
End of Day Share Price 2025/04/17 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Texas Instruments Incorporated is covered by 78 analysts. 31 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James KelleherArgus Research Company
Cody AcreeAscendiant Capital Markets LLC
Tristan GerraBaird