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Texas Instruments Incorporated — Intrinsic Value & Fair Price

TXN
NASDAQTechnologySemiconductorsCIK 0000097476ti.comAbout TXN
Last close · Oct 16, 2026276.48−2.64 (−0.95%)
Market cap$252.5B
Model value · DCF · Perpetuity growth · 5y
119.49
Texas Instruments closed at $276.48 — overvalued by 131% vs model.
83.93the model's range203.56

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
40.77 – 697.46
Wall St. target
320.00 14% below
Above model, 1y
67 of 78 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.05%
Past 2 years
low 1.69%high 3.65%
Dividends per share, a year at a time
$4.08Jul ’21$4.60Jul ’22$4.96Jul ’23$5.20Jul ’24$5.44Jul ’25$5.68TTM
Dividends / free cash flow, FY2025
192.0%
Raised
22 years in a row
Growth, 5 yrs
6.8% a year
Last change
+4.4% · Oct 2025
Every payment, with ex-dates · latest $1.42, paid Aug 11, 2026

Research on TXN

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How it is valued

Valued asCyclical
Low/slowing growth (~0% recent)High profitability (28% net margin)Pays dividendsHighly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
50.7×
EV / EBITDA
31.9×
FCF yield
1.0%
Dividend yield, TTM
2.05%
Beta
1.34
Cost of capital (WACC)
9.87%
Full financials

Analyst actions

third-party, quoted
07-29Arete Research · target405.00
07-23Mizuho Securities · target305.00
07-23UBS · target380.00
05-22Seaport Global · “Buy” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists TXN as a comparable

The weekly

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About Texas Instruments

Texas Instruments Incorporated (TI) specializes in the global design, production, and sale of semiconductors to electronics engineers and manufacturers. Its operations are structured into two core segments: Analog and Embedded Processing. The Analog division provides a comprehensive suite of power management products, such as battery-management solutions, various DC/DC and AC/DC switching regulators and controllers, power switches, linear regulators, voltage supervisors, references, and lighting components, all critical for managing diverse power needs. This segment also delivers signal chain products designed to sense, condition, and measure electrical signals, facilitating information transfer or conversion for further processing and control, encompassing items like amplifiers, data converters, interface devices, motor drives, clocks, and sensing technologies. The Embedded Processing segment develops microcontrollers, integral to a wide array of electronic equipment; digital signal processors (DSPs) for complex mathematical computations; and applications processors tailored for specific computing tasks. Products from this segment are utilized across numerous markets, including industrial applications, the automotive sector, personal electronics, communication systems, enterprise solutions, and calculators. Beyond these, TI also produces DLP® products, primarily used in projectors to generate high-definition images; a range of calculators; and custom application-specific integrated circuits (ASICs). The company distributes its semiconductor offerings through a direct sales force, its network of authorized distributors, and its official website. Established in 1930, Texas Instruments is headquartered in Dallas, Texas.

CEO
Haviv Ilan
Headquarters
Dallas, TX
Employees
33,000
IPO
1972-06-01
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.