Highly Regarded

Is Texas Instruments Inc. (TXN) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

46% Discount TTM fundamentals · sector averages from covered peers

TXN trades at 51.2× TTM earnings — a 46% discount to its Technology sector average of 94.7× in our coverage.

The Numbers

P/E (TTM)

51.2×

Sector avg: 94.7×

P/S (TTM)

14.3×

Sector avg: 22.1×

Market Cap

$253.34B

EPS (TTM): $5.45

Revenue (TTM)

$17.68B

Net income: $5.00B

Technology Peer Comparison

How TXN's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
TXN This page $279.15 51.2×
NVDA $217.23 53.8×
AAPL $341.95 43.3×
MSFT $539.24 33.7×
AVGO $344.31 72.2×
AMD $562.16 212.1×
PLTR $200.48 466.2×
INTC $95.36 —
CSCO $109.85 42.4×
ORCL $134.50 31.1×
CRM $246.71 35.8×
QCOM $178.39 36.0×
ADBE $251.65 15.1×

Is the Discount Justified?

October 11, 2026

Texas Instruments' P/E of 52.1x is below the technology sector average of 94.8x. The company recently announced a reduction in its capital expenditure plans for fiscal 2026, targeting between $2 billion and $3 billion, a decrease from approximately $4.6 billion in 2025. While this adjustment aims to support technology development and revenue growth, it could signal a more cautious outlook or a response to anticipated slower near-term sales in the semiconductor industry. Furthermore, the company updated its inventory days target, which some market observers interpret as a proactive measure to address potential inventory build-up. These factors may contribute to its current valuation relative to the broader, often higher-growth, technology sector.

Sources

Frequently Asked Questions

Is TXN overvalued or undervalued?
On trailing-twelve-month earnings, TXN trades at 51.2x versus a Technology sector average of 94.7x in our coverage — a 45.9% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing TXN with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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