Texas Instruments Incorporated (TXN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-84.8%

$46.94

vs $309.00 price

Levered DCF

$34.84

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

13.2

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	31.83×	35.78×	23.91×	17.37×	22.49×	27.13×	24.07×	16.55×
P/B	9.69×	10.12×	9.16×	10.38×	13.05×	16.45×	13.48×	10.19×
P/S	8.92×	10.93×	8.83×	7.56×	9.48×	10.45×	8.35×	5.81×
EV / EBITDA	20.59×	24.25×	18.21×	14.06×	17.65×	21.56×	17.81×	12.14×
Gross margin	57.0%	58.1%	62.9%	68.8%	67.5%	64.1%	63.7%	65.1%
Operating margin	34.1%	34.9%	41.8%	50.6%	48.8%	40.8%	39.8%	42.5%
Net margin	28.3%	30.7%	37.2%	43.7%	42.4%	38.7%	34.9%	35.4%
Current ratio	4.35×	4.12×	4.55×	4.7×	5.33×	4.28×	4.13×	3.27×
Debt / equity	0.95×	0.89×	0.73×	0.65×	0.62×	0.77×	0.69×	0.56×
Interest coverage	11.09×	10.76×	20.77×	47.38×	48.7×	31.02×	33.66×	53.7×
Dividend yield	3.2%	2.8%	2.9%	2.8%	2.2%	2.3%	2.5%	2.8%
Payout ratio	100.0%	99.9%	70.0%	49.1%	50.0%	61.2%	60.0%	45.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	30.7%	28.4%	38.5%	60.0%	58.3%	60.9%	56.3%	62.0%
Return on invested capital	16.5%	14.7%	21.7%	35.7%	34.4%	31.2%	30.4%	36.4%
Return on assets	14.5%	13.5%	20.1%	32.2%	31.5%	28.9%	27.8%	32.6%
Free cash flow yield	1.7%	0.9%	0.9%	3.9%	3.6%	3.6%	4.8%	6.6%
Earnings yield	3.2%	2.8%	4.2%	5.8%	4.5%	3.7%	4.2%	6.1%
Enterprise value	$169.9B	$182.8B	$164.1B	$157.8B	$177.5B	$155.2B	$123.8B	$94.3B
Net debt / EBITDA	1.47×	1.57×	1.03×	0.57×	0.36×	0.56×	0.53×	0.34×
Cash conversion cycle (days)	235	247	217	146	116	144	140	143