Texas Instruments Valuation
| TXN Stock | USD 277.14 -5.09 -1.80% |
Above Model Estimate
Today
Please note that Texas Instruments' price fluctuation is Very Low at this time. This valuation view for Texas Instruments reflects a 3 months time horizon. Lengthening the time horizon typically improves pricing accuracy.
Value Estimates Divergence
Texas Instruments's market price of $277.14 compares with a model-derived intrinsic value estimate near $172.31 per share, reading as above model estimate. The premium pricing reflects strong margins and earnings quality that the model may be valuing more conservatively than the market. For Texas Instruments, the valuation baseline starts with a return on equity of 18% and is then cross-checked against technical indicators and Probability Of Bankruptcy.| Historical | Market 277.14 | Intrinsic 172.31 | Target 266.03 | Sentiment 278.23 | Naive 290.63 | DCF 60.56 |
The intrinsic value estimate of Texas Stock represents the modeled economic worth of Texas Instruments based on its earnings power and capital structure. When intrinsic value diverges from market price, the gap typically reflects disagreement about earnings sustainability or risk.
Estimating the potential upside or downside of Texas Instruments Incorporated supports forecasting how Texas stock impacts portfolios. Adding Texas stock to a portfolio requires sizing both the recovery case and the further-deterioration case.
The valuation of Texas Instruments is tested here against earnings multiples, cash-flow models, and asset-based benchmarks. If more than one evaluation category is relevant, using all methods arrives at a better estimate.
Main Profitability Drivers
The latest figures show Texas Instruments' net profit margin at 30.00% and operating margin at 36.00%. The spread of 6.00 percentage points between the two margins reflects the impact of financing costs and tax obligations on Texas Instruments' earnings. Revenue of 17.68 Billion translated into 10.08 Billion of gross profit for Texas Instruments, with net income reaching 5 Billion. The company produces 18.00% on shareholders' equity and 10.00% on total assets, framing Texas Instruments' capital efficiency picture. Texas Instruments' profitability picture is mixed, with some metrics improving while others show pressure. A more granular view is available in Texas Instruments' profitability metrics for a broader perspective on earnings quality.
Price Book 13.2214 | Gross Profit | Price Sales 14.5249 | Profit Margin | Enterprise Value Revenue 12.6863 |
Texas Instruments Cash | 3.39 Billion |
Cash stood at 3.23 Billion as of December 31, 2025.
Revenue by Product
Texas Instruments' revenue is distributed across 2 distinct product categories. Analog leads at 3.17 Billion, representing roughly 83.8% of the total, followed by Embedded Processing at 613 Million (16.2%). With the top segment exceeding 60% of revenue, Texas Instruments' earnings are heavily concentrated in a single product line.Texas Instruments operates as a semiconductor company where revenue is driven by chip demand, production cycles, and end-market technology trends. Positioned as a moderate-growth stock within Semiconductors & Semiconductor Equipment, its valuation multiples suggest steady earnings expectations without aggressive growth pricing. Below, the key valuation drivers are examined to determine what the market is pricing and whether the underlying data supports it.
Total Value Analysis
Texas Instruments Incorporated currently shows enterprise value of 224.32 B, market capitalization of 256.83 B, debt of 15.39 B, and cash and equivalents of 9.09 B as of latest reporting. Reviewing Texas Instruments fundamentals clarifies whether the enterprise-value composition reflects durable capital structure or temporary balance-sheet effects.| Takeover Price | Market Cap | Debt Obligations | Cash & Equivalents |
224.32 B | 256.83 B | 15.39 B | 9.09 B |
Investor Information
About 91.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.86. Texas Instruments recorded earnings per share (EPS) of 5.84. The company had its last dividend issued on the 5th of May 2026. The firm completed a 2:1 stock split on 23rd of May 2000. Texas Instruments Incorporated shows stable financial positioning across liquidity, leverage, and earnings quality. Asset-level profitability holds steady, reflecting balanced cost management and revenue retention.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | 3.9 B | 7.2 B |
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Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Texas Instruments has an asset utilization ratio of 51.13 percent. This suggests that the Company is making $0.51 for each dollar of assets. An increasing asset utilization means that Texas Instruments Incorporated is more efficient with each dollar of assets it utilizes for everyday operations.Macro event markers
Discounted Cash Flow Analysis
Using the current custom levered DCF inputs, Texas Instruments is worth about 60.56 per share while the market is pricing it near 277.14. That leaves the shares trading about 78.1% above this model output. The model discounts levered cash flows at 8.31% and assumes terminal growth of 4.0%, while forward free cash flow is near 3.48 Billion. Discounted forecast cash flows sum to about 13.33 Billion before the terminal component, and present terminal value still represents roughly 80.2% of enterprise value. With 80.2% of enterprise value concentrated in the terminal component, the estimate is inherently assumption-sensitive and should be interpreted as directional rather than precise.Model Value / Share
60.56
Equity value per share from the current custom levered DCF summary row.
Market Price
277.14
Current market price used by the same scenario.
Model Premium
78.1%
Market price sits above the model output.
WACC / LT Growth
8.31% / 4.0%
Forecast horizon: 2021 to 2030Terminal value share of EV: 80.2%
Texas Market Price vs. Intrinsic Value
This chart compares observed market pricing with the model-derived equity value per share across forecast periods. It also illustrates the relative premium or discount, expressed as a percentage difference between market valuation and modeled intrinsic value.
Projected Revenue and Levered Free Cash Flow
Revenue and levered free cash flow projections are presented in billions, outlining the expected financial trajectory over the modeled horizon.
Key Model Assumptions
The inputs below reflect the core assumptions applied in the valuation model, including growth expectations, discount rates, and capital structure considerations.
| Input | Current Value |
|---|---|
| Weighted Average Cost of Capital | 8.31% |
| Long-Term Growth Rate | 4.0% |
| Cost of Equity | 8.61% |
| After-Tax Cost of Debt | 3.43% |
| Debt Weighting | 5.73% |
| Equity Weighting | 94.27% |
| Net Debt | 12.17 Billion |
| Enterprise Value | 67.46 Billion |
| Present Terminal Value | 54.13 Billion |
| Terminal Value Share of EV | 80.2% |
Forecast Detail and Valuation Progression
This table presents the underlying forecast data used in the valuation, including revenue, cash flow generation, discounting effects, and the resulting per-share value across each projected period.
| Year | Revenue | Revenue Growth | Free Cash Flow | PV of LFCF | Equity Value / Share |
|---|---|---|---|---|---|
| 2021 | 18.34 Billion | 0.00% | 6.29 Billion | 0.0 | 60.56 |
| 2022 | 20.03 Billion | 9.18% | 5.92 Billion | 0.0 | 60.56 |
| 2023 | 17.52 Billion | -12.53% | 1.35 Billion | 0.0 | 60.56 |
| 2024 | 15.64 Billion | -10.72% | 1.5 Billion | 0.0 | 60.56 |
| 2025 | 17.68 Billion | 13.05% | 2.6 Billion | 0.0 | 60.56 |
| 2026 | 17.64 Billion | -0.25% | 3.38 Billion | 3.12 Billion | 60.56 |
| 2027 | 17.59 Billion | -0.25% | 3.37 Billion | 2.88 Billion | 60.56 |
| 2028 | 17.55 Billion | -0.25% | 3.36 Billion | 2.65 Billion | 60.56 |
| 2029 | 17.5 Billion | -0.25% | 3.36 Billion | 2.44 Billion | 60.56 |
| 2030 | 17.46 Billion | -0.25% | 3.35 Billion | 2.25 Billion | 60.56 |
Profitability Analysis
Based on Texas Instruments' financial statements, Texas Instruments Incorporated maintains a strong margin profile with a net profit margin of 30.0% and an operating margin of 36.0%, producing net income of 5 Billion. Return on equity is 18.0%. Profitability trends are stable, with recent metrics holding near prior-year levels.Net Income | First Reported 1985-09-30 | Previous Quarter 1.2 B | Current Value 1.5 B | Quarterly Volatility 616.6 M |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.37 | 0.5702 |
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Texas Instruments profitability is assessed through margins, return on equity, and asset efficiency. Net margin of 30.0% reflects solid earnings conversion and cost discipline relative to revenue. The data below separates structural profitability from one-time items and cyclical effects. Texas Instruments reports return on equity of 18.0%, above the level typically associated with durable competitive advantages.
Earnings per Share Projection vs Actual
Tracking Texas Instruments' EPS estimates over successive quarters reveals whether analyst conviction is strengthening or softening. Trailing EPS of 5.84 anchors the historical earnings baseline for Texas Instruments. For Texas Instruments, EPS is most informative alongside margin stability and cash-flow conversion. Analyst EPS projections for Texas Instruments Incorporated set the bar that actual results are measured against. The direction and magnitude of any miss or beat often matters more than the absolute number. Texas Instruments reported estimated earnings of 1.9194 in earnings per share on 30th of June 2026. Revisions to EPS estimates — direction and magnitude — often move valuation multiples before the actual report date.Macro event markers
Earnings Estimation Breakdown
37 analysts contribute to the current consensus. The last reported EPS was 1.68 as of 31st of March 2026.
Last Reported EPS
1.66
Lowest
1.92
Expected EPS
2.04
Highest
Analyst estimate range around the current expected EPS projection.
Earnings Projection Consensus
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 37 | 92.82% | 1.68 | 1.92 | 5.84 |
Ownership Allocation
The majority of Texas Instruments' outstanding shares are owned by institutional holders. Institutional investors such as pension funds, mutual funds, and asset managers typically hold large positions as part of their investment mandates, managing money on behalf of clients or beneficiaries. As a result, they are subject to reporting requirements and oversight rules - such as 13F filings and position disclosure thresholds - that do not apply to individual retail investors.Revenue and Profit Overview
The company reported last year's revenue of 17.68 B. Total Income to common stockholders was 5 B with profit before taxes, overhead, and interest of 10.08 B.Past Dividend Distributions
Changes in dividend policy at this Stock may influence how investors interpret its financial outlook. Comparing dividend payments with historical earnings trends can provide useful context. Income-focused investors may want to see dividend yield and payout trends.
| 10th of February 2026 | ||
| 12th of November 2025 | ||
| 12th of August 2025 | ||
| 13th of May 2025 | ||
| 30th of April 2025 | ||
| 11th of February 2025 | ||
| 12th of November 2024 | ||
| 13th of August 2024 | ||
| 21st of May 2024 | ||
| 8th of May 2024 |
What the Data Shows
The 18.13 earnings multiple is consistent with platform and software companies that generate stable, high-margin cash flows from its scalable, platform-driven revenue model. For platform and software companies, the earnings multiple reflects operating economics and cost structure more than top-line growth alone. Texas Instruments retains 30.0% of revenue as profit, a level that provides meaningful downside protection relative to most peers in Semiconductors & Semiconductor Equipment. The profitability structure reflects how the business generates and retains revenue - distinct from many peers in Semiconductors & Semiconductor Equipment. The 0.55 debt-to-equity ratio is moderate; for a business built on its scalable, platform-driven revenue model, returns stem from operating scale rather than financial leverage. Texas Instruments generates 18.0% return on equity, a reflection of its asset-light model where limited capital requirements allow a larger share of earnings to flow directly into shareholder returns. The current valuation prices in steady earnings performance roughly in line with historical trends, meaning future performance depends more on meeting those expectations than exceeding them. Longer-term, platform adoption, margin expansion, and the durability of growth-oriented pricing will shape whether the market reassesses this positioning.
Big Picture Assessment
Texas Instruments Incorporated fits the profile of a high-margin business where returns flow from the underlying operating model and scale advantages, not financial leverage, a positioning that shapes how platform and software companies are valued. Above-average margins combined with strong return on equity reflect durable competitive positioning, reinforced by the scalability of the underlying business model. On balance, Texas Instruments is operating from a position of strength. How much of that strength is already priced in depends on platform adoption, margin expansion, and the durability of growth-oriented pricing.
These valuation inputs for Texas Instruments Incorporated should be revisited as new filings and market data become available. Given the current mix of multiples, margins, and leverage, the valuation picture is most useful when tracked over time rather than read as a static conclusion.
Valuation Framework, Methodology & Assumptions
Texas Instruments is a mega-cap equity in Semiconductors & Semiconductor Equipment, Information Technology, SAMPP 500 Index categories. Valuation integrates earnings durability and capital efficiency. Market sensitivity appears generally aligned with broader economic conditions. For Texas Instruments, the leading valuation metrics are enterprise value of 224.32 B, P/E of 18.13, P/B of 13.22; additional context comes from P/S of 14.52.
Texas Instruments Incorporated analytics rely on periodic company reporting and market reference feeds, with quality checks and normalization applied. Analyst inputs may be included when coverage is available. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
The analysis above is generated by quantitative models and is provided for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement to buy or sell any security. All investing involves risk, including the possible loss of principal. Consult a qualified financial advisor before making investment decisions. See our Terms of Use for full details.
Financial data referenced in this analysis is derived from publicly available SEC filings, audited financial statements, and third-party market data providers. The intrinsic value estimate is generated by Macroaxis quantitative models that incorporate fundamental analysis, technical indicators, and risk metrics.
The methodology combines multiple analytical inputs:
- Fundamental analysis - financial statements, profitability ratios, debt structure, and cash flow metrics sourced from SEC filings and public financial reports
- Technical indicators - historical price patterns, momentum signals, and volatility measures
- Risk assessment - probability of bankruptcy models, market risk metrics, and downside scenario analysis
- Peer comparison - relative valuation against industry peers using standardized multiples
Model outputs are refreshed periodically as new financial data becomes available. Past model performance is not indicative of future results. The intrinsic value estimate reflects a point-in-time calculation and should be considered alongside other research and professional advice.
Data sourced from SEC filings (EDGAR), public financial statements, and market data providers.
Editorial Review & Methodology Oversight
Role: Junior Member of Macroaxis Editorial Board
Finance background: Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
Oversight scope: Reviews recommendation-framework framing, source assumptions, and disclosure language.
Growth Indicators
When investors treat Texas Instruments Incorporated as a growth opportunity, they are usually paying for future execution rather than only for current fundamentals. The practical risk is that high expectations leave less room for disappointment when results or guidance soften.
| Common Stock Shares Outstanding | 913 M | |
| Quarterly Earnings Growth Y O Y | -3.20% | |
| Forward Price Earnings | 36.4964 |
Texas Instruments Current Valuation Indicators
The intrinsic value of Texas Instruments Incorporated is estimated using multiple approaches, including discounted cash flow analysis, relative valuation multiples, and balance sheet-based methods, each reflecting different assumptions about earnings durability, capital structure, and future cash generation. Earnings multiples, cash-flow yields, and asset-based measures work best as a group rather than in isolation. Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.