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Texas Instruments Inc
NASDAQ:TXN

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Texas Instruments Inc
NASDAQ:TXN
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Price: 229.82 USD 3.01% Market Closed
Market Cap: $209.2B

EV/EBIT

35.4
Current
31%
More Expensive
vs 3-y median of 27

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
35.4
=
Enterprise Value
$202.2B
/
EBIT
$6.1B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
35.4
=
Enterprise Value
$202.2B
/
EBIT
$6.1B

Valuation Scenarios

Texas Instruments Inc is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (27), the stock would be worth $175.4 (24% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-45%
Maximum Upside
+9%
Average Downside
25%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 35.4 $229.82
0%
3-Year Average 27 $175.4
-24%
5-Year Average 21 $135.91
-41%
Industry Average 38.7 $250.95
+9%
Country Average 19.6 $127.28
-45%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$202.2B
/
Jan 2026
$6.1B
=
35.4
Current
$202.2B
/
Dec 2026
$7.2B
=
28.1
Forward
$202.2B
/
Dec 2027
$8.6B
=
23.6
Forward
$202.2B
/
Dec 2028
$10.1B
=
20
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
US
Texas Instruments Inc
NASDAQ:TXN
208.4B USD 35.4 41.9
US
NVIDIA Corp
NASDAQ:NVDA
4.9T USD 37 40.8
US
Broadcom Inc
NASDAQ:AVGO
1.9T USD 69.6 77.1
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
52.6T TWD 22.9 27.9
US
Micron Technology Inc
NASDAQ:MU
513.3B USD 18.1 21.3
KR
SK Hynix Inc
KRX:000660
701.7T KRW 14.5 16.1
US
Advanced Micro Devices Inc
NASDAQ:AMD
453.8B USD 120.6 104.7
US
Intel Corp
NASDAQ:INTC
342.1B USD -15 240.9 -1 281.2
US
Analog Devices Inc
NASDAQ:ADI
181.3B USD 53 67
UK
Arm Holdings PLC
NASDAQ:ARM
177.1B USD 198.2 221.1
US
Qualcomm Inc
NASDAQ:QCOM
146.3B USD 12.2 27.3
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Texas Instruments Inc
NASDAQ:TXN
Average EV/EBIT: 58.2
35.4
18%
2
US
NVIDIA Corp
NASDAQ:NVDA
37
43%
0.9
US
Broadcom Inc
NASDAQ:AVGO
69.6
70%
1
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
22.9
28%
0.8
US
Micron Technology Inc
NASDAQ:MU
18.1
87%
0.2
KR
SK Hynix Inc
KRX:000660
14.5
52%
0.3
US
Advanced Micro Devices Inc
NASDAQ:AMD
120.6
94%
1.3
US
Intel Corp
NASDAQ:INTC
Negative Multiple: -15 240.9 N/A N/A
US
Analog Devices Inc
NASDAQ:ADI
53
38%
1.4
UK
Arm Holdings PLC
NASDAQ:ARM
198.2
58%
3.4
US
Qualcomm Inc
NASDAQ:QCOM
12.2
4%
3.1

Market Distribution

Higher than 80% of companies in the United States of America
Percentile
80th
Based on 8 638 companies
80th percentile
35.4
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

Texas Instruments Inc
Glance View

In the bustling landscape of technology, Texas Instruments Inc. (TI) stands out as a robust beacon of innovation and resilience. Born out of transformative visions in the 1930s, TI has evolved dramatically over the decades from its early days as a humble geophysical exploration company. Today, it dominates the semiconductor industry with a primary focus on designing and manufacturing analog and embedded processing chips. These components, often unseen, are the essential lifeblood within countless electronic devices that people and businesses rely on daily—from personal electronics and industrial machinery to automotive applications. TI excels in its ability to consistently produce high-quality, reliable semiconductors that manage power supply, amplify signals, and perform myriad processing tasks with precision and efficiency. What sets TI apart is not just its advanced technological prowess but also its strategic business model which optimizes cost efficiency and scalability. The company operates a vast network of wafer fabrication plants, allowing it to control its manufacturing process and keep costs competitive while ensuring consistent quality. By capitalizing on a broad portfolio of products and serving a diverse customer base across various sectors, TI generates strong revenues and maintains a sustainable growth trajectory. Its commitment to research and development fuels continuous innovation, positioning TI as a crucial component supplier in a rapidly advancing digital age. This meticulously crafted operation aligns well with its long-term vision, helping TI to turn complex technological advancements into straightforward, enduring profitability.

TXN Intrinsic Value
142.81 USD
Overvaluation 38%
Intrinsic Value
Price $229.82
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