The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$5,287.32||$5,850.82||$6,472.33||$6,697.03||$6,929.55|
|Source||Analyst x12||Analyst x10||Analyst x4||Extrapolated @ (3.47%)||Extrapolated @ (3.47%)|
Discounted (@ 10%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $6,930 × (1 + 2.47%) ÷ (10% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$81,944 = $23,382 + $58,562
Value = Total value / Shares Outstanding ($81,944 / 983)Discount to Share Price
Value per share:
Current discount (share price of $104.47): -25.34%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 10% = 2.47% + (1 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($102,710,591,687).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1 = 0.977 (1 + (1- 40%) (3.97%))
Levered Beta used in calculation = 1
Mr. Richard K. Templeton, also known as Rich, has been the Chief Executive Officer and President of Texas Instruments Inc. since May 2004. Mr. Templeton joined Texas Instruments Inc. in 1980 in the Semiconductor Group's sales and marketing organization and served as its Chief Operating Officer from 2000 to April 2004, Executive Vice President and President of Semiconductor division since 1996 and Senior Vice President since 1994. Mr. Templeton served as the President of Texas Instruments Inc. from May 2004 to April 2013. He served as a Texas Instruments Inc.'s Vice President since 1991 and was promoted to manager of worldwide application specific products in 1993, with responsibility for a wide range of products including digital signal processors. He has been the Chairman of Texas Instruments Inc. since April 17, 2008. He served as the Chairman of Semiconductor Industry Association. He has been an Executive Director of Texas Instruments Inc. since July 2003. He serves as a Director of Semiconductor Industry Association. He serves as a Director of Catalyst, Inc. He holds a Bachelors Degree in Electrical Engineering from Union College.
Average tenure and age of the Texas Instruments management team in years:
Average tenure and age of the Texas Instruments board of directors in years:
After looking at Texas Instruments Incorporated's (NASDAQ:TXN) latest earnings announcement (30 September 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … View our latest analysis for Texas Instruments Commentary On TXN's Past Performance For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … This means on average, Texas Instruments has been able to steadily raise its profits over the last couple of years as well.Simply Wall St - – Full article
View our latest analysis for Texas Instruments How does TXN’s operating cash flow stack up against its debt? … Additionally, TXN has produced $4,614.0M in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 127.85%, signalling that TXN’s operating cash is sufficient to cover its debt. … Next Steps: TXN has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at an appropriate level.Simply Wall St - – Full article
To help investors get a top level understanding, I will try to evaluate Texas Instruments's margin behaviour to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … Margin Calculation for TXN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 4.34 Billion ÷ 14.63 Billion = 29.67% Texas Instruments's margin has expanded in the past five years, as a result of 9.69% in average net income growth exceeding average revenue growth of 0.10%, which means that the previous increase in revenue has coincided with a larger portion falling to the bottom line. … Based on future expectations, TXN's profit margin will shift towards contraction, with annual revenue growth tipped at 3.82% and 3.45% earnings growth expected annually.Simply Wall St - – Full article
Since Texas Instruments’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. … Texas Instruments’s future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe Texas Instruments should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.Simply Wall St - – Full article
See our latest analysis for TXN Breaking down Return on Equity Return on Equity (ROE) weighs TXN’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of TXN’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:TXN Last Perf Nov 28th 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.Simply Wall St - – Full article
Check out our latest analysis for Texas Instruments 5 questions to ask before buying a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is their annual yield among the top 25% of dividend payers? … Relative to peers, Texas Instruments produces a yield of 2.09%, which is on the low-side for a semiconductors and semiconductor equipment stock. … There's not much to jump for joy about for Texas Instruments from a dividend stock perspective.Simply Wall St - – Full article
See our latest analysis for TXN Here's how I find good dividend stocks When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it the top 25% annual dividend yield payer? … NasdaqGS:TXN Historical Dividend Yield Oct 22nd 17 Does Texas Instruments pass our checks? … The current payout ratio for the stock is 46.10%, meaning the dividend is sufficiently covered by earnings.Simply Wall St - – Full article
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. The company operates through two segments, Analog and Embedded Processing. The Analog segment offers high volume analog and logic products for automotive safety devices, touch screen controllers, low voltage motor drivers, and integrated motor controllers; and power products to manage power requirements using battery management solutions, portable power components, power supply controls, and point-of-load products. This segment also provides high performance analog products, such as high-speed data converters, amplifiers, sensors, high reliability products, interface products, and precision products; and silicon valley analog products, including power management, data converter, interface, and operational amplifier products that are used in manufacturing various electronic systems. The Embedded Processing segment offers processors, including digital signal processors and applications processors; microcontrollers, such as self-contained systems with a processor core, memory, and peripherals that are designed to control a set of specific tasks for electronic equipment; and connectivity products that enable electronic equipment to connect and transfer data wirelessly. It also provides DLP products primarily used in projectors to create high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as online. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
|Name:||Texas Instruments Incorporated|
Texas Instruments Incorporated
12500 TI Boulevard,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||TXN||Common Stock||Nasdaq Global Select||US||USD||02. Jan 1968|
|DB||TII||Common Stock||Deutsche Boerse AG||DE||EUR||02. Jan 1968|
|LSE||0R2H||Common Stock||London Stock Exchange||GB||USD||02. Jan 1968|
|SWX||TXN||Common Stock||SIX Swiss Exchange||CH||CHF||02. Jan 1968|
|WBAG||TXN||Common Stock||Wiener Boerse AG||AT||EUR||02. Jan 1968|
|BMV||TXN *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||02. Jan 1968|
|BASE||TXN||CEDEAR EACH 5 REP 1 ORD USD1||Buenos Aires Stock Exchange||AR||ARS||13. Sep 2000|
|BOVESPA||TEXA34||EACH BDR REPR 1 COM USD1||Bolsa de Valores de Sao Paulo||BR||BRL||24. Aug 2015|
|Company Analysis updated:||2018/02/18|
|Last estimates confirmation:||2018/02/10|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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 here.