Texas Instruments Incorporated

Valuation Analysis

About the Company

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, multiphase controllers and power stages, and lighting products. This segment also provides signal chain products that sense, condition, and measure real-world signals and convert them into data to be transferred or converted for further p

Texas Instruments Incorporated Stock at a Glance

Texas Instruments Incorporated (TXN) is currently trading at $301.12 with a market capitalization of $274B. The trailing P/E ratio stands at 51.56x, with a forward P/E of 31.99x. The 52-week range spans from $152.73 to $331.51; the current price is 9.2% below the yearly high. Year-over-year revenue growth stands at +18.6%. The net profit margin stands at 29.11%.

💰 Dividend

Texas Instruments Incorporated pays an annual dividend of $5.68 per share, representing a yield of 1.89%. The payout ratio stands at 95.04%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

33 analysts rate Texas Instruments Incorporated (TXN) on consensus: Buy. The average price target is $291.55, implying -3.18% from the current price. Analyst price targets range from $200.00 to $400.00.

Texas Instruments Incorporated: The Investment Case in Detail

Texas Instruments Incorporated (TXN) operates in the Technology — specifically Semiconductors — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 18.6% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 31.3% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 57.32% gross margin and 37.82% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

The Bear Case

A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The PEG ratio at 1.44 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 32.66x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 31.99x is meaningfully below the trailing 51.56x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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