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 47.9× TTM earnings — a 46% discount to its Technology sector average of 89.2× in our coverage.

The Numbers

P/E (TTM)

47.9×

Sector avg: 89.2×

P/S (TTM)

13.4×

Sector avg: 21.2×

Market Cap

$236.71B

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 $260.82 47.9×
NVDA $220.92 54.7×
AAPL $316.83 40.1×
MSFT $507.14 31.7×
AVGO $370.45 77.7×
AMD $470.95 177.7×
INTC $89.54 —
PLTR $186.32 433.3×
CSCO $110.47 42.7×
ORCL $149.14 34.5×
CRM $257.65 37.4×
QCOM $170.46 34.4×
ADBE $292.76 17.5×

Is the Discount Justified?

August 9, 2026

Texas Instruments Inc. (TXN) trades at a P/E multiple of 52.5x, which is below the Technology sector average of 84.1x. This valuation may reflect its focus on more mature, yet essential, analog and embedded processing segments compared to some higher-growth areas within the broader technology sector. However, recent second-quarter 2026 results demonstrated strong performance, with revenue surging 23% year-over-year to $5.46 billion and net income increasing 53%. This growth was primarily driven by robust demand in the industrial, data center, and automotive sectors, particularly for AI applications. The company's optimistic third-quarter outlook, projecting revenue between $5.65 billion and $6.15 billion, suggests a potential turnaround in the semiconductor cycle as customers restock inventories. Texas Instruments continues to invest in research and development and manufacturing capacity, supporting its long-term position in these critical markets.

Sources

Frequently Asked Questions

Is TXN overvalued or undervalued?
On trailing-twelve-month earnings, TXN trades at 47.9x versus a Technology sector average of 89.2x in our coverage — a 46.4% 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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