Texas Instruments Incorporated

NasdaqGS:TXN Stock Report

Market Cap: US$183.4b

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 ($198.19) is trading above our estimate of fair value ($191.94)

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$183.42b

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 Average85.7x
QCOM QUALCOMM
17x7.3%US$183.0b
AMD Advanced Micro Devices
122.3x40.5%US$226.2b
MU Micron Technology
140.2x31.5%US$108.4b
ADI Analog Devices
63.3x25.7%US$104.5b
TXN Texas Instruments
36.6x15.4%US$183.4b

Price-To-Earnings vs Peers: TXN is good value based on its Price-To-Earnings Ratio (36.6x) compared to the peer average (85.7x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.5xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
TXN 36.6xIndustry Avg. 30.3xNo. of Companies9PE020406080100+
2 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 US Semiconductor industry average (30.3x).

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 Ratio30.3x

Price-To-Earnings vs Fair Ratio: TXN is expensive based on its Price-To-Earnings Ratio (36.6x) compared to the estimated Fair Price-To-Earnings Ratio (30.3x).

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$198.19
US$208.29
+5.1%
16.6%US$298.00US$140.00n/a28
Nov ’25US$204.92
US$208.29
+1.6%
16.6%US$298.00US$140.00n/a28
Oct ’25US$201.60
US$206.78
+2.6%
16.4%US$268.00US$115.00n/a28
Sep ’25US$214.34
US$208.24
-2.8%
16.6%US$268.00US$115.00n/a28
Aug ’25US$193.33
US$203.88
+5.5%
17.2%US$255.00US$115.00n/a28
Jul ’25US$194.60
US$180.51
-7.2%
14.9%US$230.00US$115.00n/a29
Jun ’25US$195.01
US$178.79
-8.3%
13.9%US$225.00US$115.00n/a29
May ’25US$175.20
US$176.53
+0.8%
13.8%US$225.00US$115.00n/a28
Apr ’25US$173.17
US$169.10
-2.4%
15.0%US$210.00US$109.00n/a28
Mar ’25US$171.05
US$167.96
-1.8%
14.5%US$210.00US$109.00n/a28
Feb ’25US$159.69
US$168.61
+5.6%
14.6%US$210.00US$109.00n/a28
Jan ’25US$170.46
US$164.54
-3.5%
13.9%US$210.00US$120.00n/a28
Dec ’24US$155.21
US$163.74
+5.5%
14.1%US$210.00US$120.00n/a28
Nov ’24US$143.17
US$163.74
+14.4%
14.1%US$210.00US$120.00US$204.9228
Oct ’24US$159.01
US$184.75
+16.2%
12.0%US$230.00US$130.00US$201.6029
Sep ’24US$169.83
US$184.87
+8.9%
12.2%US$230.00US$130.00US$214.3428
Aug ’24US$178.37
US$184.87
+3.6%
12.2%US$230.00US$130.00US$193.3328
Jul ’24US$180.02
US$181.37
+0.8%
13.0%US$230.00US$130.00US$194.6027
Jun ’24US$175.81
US$181.37
+3.2%
13.0%US$230.00US$130.00US$195.0127
May ’24US$166.68
US$181.83
+9.1%
12.9%US$230.00US$130.00US$175.2028
Apr ’24US$186.01
US$183.63
-1.3%
12.3%US$230.00US$135.00US$173.1729
Mar ’24US$172.17
US$183.63
+6.7%
12.3%US$230.00US$135.00US$171.0529
Feb ’24US$182.10
US$182.84
+0.4%
11.8%US$230.00US$135.00US$159.6929
Jan ’24US$165.22
US$173.91
+5.3%
12.9%US$230.00US$140.00US$170.4629
Dec ’23US$177.50
US$172.53
-2.8%
12.7%US$230.00US$140.00US$155.2129
Nov ’23US$162.90
US$170.87
+4.9%
13.2%US$230.00US$127.00US$143.1729

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

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