Texas Instruments Valuation
| TXN Stock | USD 199.19 1.76 0.88% |
At this time, the company appears to be overvalued. Texas Instruments has a current Real Value of $164.5 per share. The regular price of the company is $199.19. Our model measures the value of Texas Instruments from inspecting the company fundamentals such as Operating Margin of 0.37 %, return on equity of 0.29, and Shares Outstanding of 912.22 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Texas Instruments' valuation include:
Price Book 10.7202 | Enterprise Value 190.9 B | Enterprise Value Ebitda 25.1234 | Price Sales 11.6676 | Forward PE 31.8471 |
Overvalued
Today
Please note that Texas Instruments' price fluctuation is very steady at this time. Calculation of the real value of Texas Instruments is based on 3 months time horizon. Increasing Texas Instruments' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Texas Instruments is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Texas Stock. However, Texas Instruments' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 199.19 | Real 164.5 | Target 179.61 | Hype 199.2 | Naive 189.8 |
The intrinsic value of Texas Instruments' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Texas Instruments' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Texas Instruments Incorporated helps investors to forecast how Texas stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Texas Instruments more accurately as focusing exclusively on Texas Instruments' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Texas Instruments' intrinsic value based on its ongoing forecasts of Texas Instruments' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Texas Instruments' closest peers.
Texas Instruments Cash |
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Texas Valuation Trend
Knowing Texas Instruments' actual value is paramount for traders when making sound investment determinations. Using both Texas Instruments' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Texas Revenue by Product
Texas Instruments Total Value Analysis
Texas Instruments Incorporated is at this time anticipated to have company total value of 190.94 B with market capitalization of 183.31 B, debt of 11.22 B, and cash on hands of 9.09 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Texas Instruments fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
190.94 B | 183.31 B | 11.22 B | 9.09 B |
Texas Instruments Investor Information
About 91.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 5.38. Texas Instruments last dividend was issued on the 31st of October 2024. The entity had 2:1 split on the 23rd of May 2000. Based on the key indicators related to Texas Instruments' liquidity, profitability, solvency, and operating efficiency, Texas Instruments Incorporated may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 3.7 B | 6.4 B |
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Texas Instruments 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 54.16 percent. This suggests that the Company is making $0.54 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.Texas Instruments Ownership Allocation
Texas Instruments shows a total of 912.22 Million outstanding shares. The majority of Texas Instruments outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Texas Instruments to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Texas Instruments. Please pay attention to any change in the institutional holdings of Texas Instruments Incorporated as this could imply that something significant has changed or is about to change at the company. Please note that on September 11, 2024, Representative Josh Gottheimer of US Congress acquired under $15k worth of Texas Instruments's common stock.Texas Instruments Profitability Analysis
The company reported the last year's revenue of 17.52 B. Total Income to common stockholders was 6.51 B with profit before taxes, overhead, and interest of 13.77 B.Texas Instruments Past Distributions to stockholders
About Texas Instruments Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Texas Instruments Incorporated. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Texas Instruments based exclusively on its fundamental and basic technical indicators. By analyzing Texas Instruments's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Texas Instruments's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Texas Instruments. We calculate exposure to Texas Instruments's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Texas Instruments's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 11 B | 6.1 B | |
| Pretax Profit Margin | 0.42 | 0.44 | |
| Operating Profit Margin | 0.42 | 0.44 | |
| Net Profit Margin | 0.37 | 0.39 | |
| Gross Profit Margin | 0.63 | 0.36 |
Texas Instruments Quarterly Retained Earnings |
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A single share of Texas Instruments represents a small ownership stake in the entity. As a stockholder of Texas, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Texas Instruments Dividends Analysis For Valuation
At this time, Texas Instruments' Dividends Paid is very stable compared to the past year. As of the 28th of November 2024, Dividend Yield is likely to grow to 0.03, while Dividend Paid And Capex Coverage Ratio is likely to drop 0.63. . As of the 28th of November 2024, Retained Earnings is likely to grow to about 54.9 B, while Retained Earnings Total Equity is likely to drop about 34.7 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 4.6 B | 4.8 B | |
| Dividend Yield | 0.03 | 0.03 | |
| Dividend Payout Ratio | 0.70 | 0.74 | |
| Dividend Paid And Capex Coverage Ratio | 0.67 | 0.63 |
There are various types of dividends Texas Instruments can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Texas shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Texas Instruments Incorporated directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Texas pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Texas Instruments by the value of the dividends paid out.
Texas Instruments Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 916 M | |
| Quarterly Earnings Growth Y O Y | -0.206 | |
| Forward Price Earnings | 31.8471 |
Texas Instruments Current Valuation Indicators
Texas Instruments' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Texas Instruments' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Texas Instruments, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Texas Instruments' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Texas Instruments' worth.When determining whether Texas Instruments offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Texas Instruments' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Texas Instruments Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Texas Instruments Incorporated Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Texas Instruments Incorporated. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Texas Instruments. If investors know Texas will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Texas Instruments listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.21) | Dividend Share 5.2 | Earnings Share 5.38 | Revenue Per Share 17.246 | Quarterly Revenue Growth (0.08) |
The market value of Texas Instruments is measured differently than its book value, which is the value of Texas that is recorded on the company's balance sheet. Investors also form their own opinion of Texas Instruments' value that differs from its market value or its book value, called intrinsic value, which is Texas Instruments' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Texas Instruments' market value can be influenced by many factors that don't directly affect Texas Instruments' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Texas Instruments' value and its price as these two are different measures arrived at by different means. Investors typically determine if Texas Instruments is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Texas Instruments' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.