Texas Instruments Incorporated

NasdaqGS:TXN Stock Report

Market Cap: US$170.5b

Texas Instruments Valuation

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

Below Fair Value: TXN ($186.87) is trading below our estimate of fair value ($196.02)

Significantly Below Fair Value: TXN is trading below fair value, but not by a significant amount.

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 Ratio34.5x
EarningsUS$4.94b
Market CapUS$170.47b

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 Average53.2x
QCOM QUALCOMM
16.8x7.1%US$167.1b
AMD Advanced Micro Devices
105.9x40.0%US$192.9b
ADI Analog Devices
64.3x22.6%US$105.1b
MU Micron Technology
25.9x26.6%US$100.4b
TXN Texas Instruments
34.5x15.2%US$170.5b

Price-To-Earnings vs Peers: TXN is good value based on its Price-To-Earnings Ratio (34.5x) compared to the peer average (53.2x).

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
SQNS Sequans Communications
1.7x-156.5%US$71.23m
MMAT.Q Meta Materials
n/an/aUS$6.00
No more companies available in this PE range
TXN 34.5xIndustry Avg. 29.1xNo. of Companies11PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TXN is expensive based on its Price-To-Earnings Ratio (34.5x) compared to the US Semiconductor industry average (29.1x).

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 Ratio34.5x
Fair PE Ratio29.9x

Price-To-Earnings vs Fair Ratio: TXN is expensive based on its Price-To-Earnings Ratio (34.5x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).

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$186.87
US$208.83
+11.8%
16.2%US$298.00US$140.00n/a29
Dec ’25US$201.03
US$208.52
+3.7%
16.3%US$298.00US$140.00n/a29
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$120.00US$201.0328
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:47
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Texas Instruments Incorporated is covered by 83 analysts. 32 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