---
title: Texas Instruments (TXN) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/txn
ticker: TXN
as_of: 2026-10-17
sector: Technology
industry: Semiconductors
---
# Texas Instruments (TXN)

Texas Instruments (TXN) closed at $276.48 on Oct 16, 2026, overvalued by 131% vs its model value of $119.49 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $276.48 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $119.49 |
| Price vs model | overvalued by 131% vs model |
| Range of that model | $83.93 – $203.56 |
| Market value | $252.5B |
| P/E (fiscal 2025) | 50.7 |
| Net margin (fiscal 2025) | 28.3% |
| Free cash flow (fiscal 2025) | $2.6B |
| Dividend yield (trailing twelve months) | 2.05% |
| Beta | 1.34 |
| Cost of capital (WACC) | 9.87% |
| Business classification | Cyclical (Low/slowing growth (~0% recent), High profitability (28% net margin), Pays dividends, Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Largest companies | #47 | $252.5B | https://sweetvaluelab.com/lists/largest-companies |
| Best performing this year | #30 | +59.4% | https://sweetvaluelab.com/lists/best-performing-this-year |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.05% |
| Dividends per share, last 12 months | $5.68 |
| Dividends / free cash flow (fiscal 2025) | 192.0% |
| Raised | 22 years in a row |
| Growth over 5 years | 6.8% a year |
| Latest payment | $1.42, ex-date Jul 31, 2026, paid Aug 11, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Jul 23, 2021 | $4.08 |
| To Jul 29, 2022 | $4.60 |
| To Jul 28, 2023 | $4.96 |
| To Jul 31, 2024 | $5.20 |
| To Jul 31, 2025 | $5.44 |
| Trailing twelve months (to Jul 31, 2026) | $5.68 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $119.49 | $83.93 | $203.56 |
| DCF · Perpetuity growth · 10y | cross check | $146.46 | $104.15 | $245.27 |
| DCF · EBITDA exit · 5y | cross check | $697.46 | $587.53 | $824.24 |
| DCF · EBITDA exit · 10y | cross check | $659.15 | $512.96 | $846.24 |
| P/E · peers | cross check | $321.03 | $217.24 | $447.67 |
| P/E · own history | cross check | $191.94 | $138.54 | $244.29 |
| PEG | sanity check | $165.28 | $165.28 | $165.28 |
| EV/EBITDA · peers | cross check | $456.56 | $214.48 | $523.49 |
| EV/Revenue · peers | cross check | $214.07 | $94.41 | $332.12 |
| Earnings power value | cross check | $40.77 | $33.83 | $50.21 |
| Dividend discount | cross check | $95.18 | $69.16 | $141.16 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 2 open-market sales ($1.9M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 18, 2026 | FARMER CURTIS C | Director | Grant / award | 106.53 | $27,499.7 |
| Sep 18, 2026 | PATSLEY PAMELA H | Director | Grant / award | 106.53 | $27,499.7 |
| Aug 27, 2026 | Abraham Tsedeniya | Sr. Vice President | Open-market sell | 6,408 | $1.7M |
| Aug 27, 2026 | Abraham Tsedeniya | Sr. Vice President | Option/RSU exercise | 1,365 | $108,189.9 |
| Aug 27, 2026 | Abraham Tsedeniya | Sr. Vice President | Open-market sell | 592 | $156,856.3 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 17, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/97476/000095010326014118/dp253473_8k.htm |
| Jul 24, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/97476/000009747626000152/txn-20260630.htm |
| Jul 22, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/97476/000009747626000148/txn-20260722.htm |
| Jun 2, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/97476/000095010326008325/dp247795_8k.htm |
| Apr 24, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/97476/000009747626000101/txn-20260331.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Christopher Davis | 2026-06-30 | 2,437,486 | $726.5M |
| Terry Smith | 2026-06-30 | 1,799,182 | $536.3M |
| Thomas Gayner | 2026-06-30 | 724,000 | $215.8M |
| Mairs & Power | 2026-06-30 | 217,453 | $64.8M |

17 tracked managers in all.

## About

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 s…

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Source: https://sweetvaluelab.com/stocks/txn (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.