Texas Instruments Incorporated (TXN) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chip...
Texas Instruments Incorporated (TXN) currently trades at a P/E ratio of 41.72 (historical range: 15.44–56.59, median: 26.44), placing it at the 93th percentile — expensive relative to its history, P/S ratio of 12.98 (range: 6.83–16.47, 93th percentile — expensive relative to its history), EV/EBITDA of 36.00 (range: 13.01–47.87, 92th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Texas Instruments Incorporated's P/E ratio has expanded by 79% over the observed period (from an average of 20.2 to 36.2).
Texas Instruments Incorporated trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 41.72 | 26.44 | 93th | expensive relative to its history |
| P/S Ratio | 12.98 | 9.55 | 93th | expensive relative to its history |
| EV/EBITDA | 36.00 | 23.62 | 92th | expensive relative to its history |
| FCF Yield | 2.12% | 1.41% | 61th | below its historical average |
Texas Instruments Incorporated (TXN) Valuation & P/E History
Texas Instruments Incorporated (TXN) is a US-listed stock operating in the Technology sector, specifically the Semiconductors industry currently trading at $276.49 with a market capitalization of $252.5 billion. This page provides historical valuation analysis for TXN based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 41.72 is above the historical median of 26.44, placing TXN at the 93th percentile of its valuation range. The P/S ratio of 12.98 compares to a median of 9.55.
TXN Valuation Metrics & Historical Range
The valuation table above shows Texas Instruments Incorporated's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether TXN is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests TXN is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Texas Instruments Incorporated.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is TXN Overvalued or Undervalued?
Texas Instruments Incorporated trades well above its own historical valuation range across most metrics. The overall valuation percentile of 93 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive TXN is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full TXN analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.TXN trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.