* Note: Prices are in Million (M) USD.
Description:
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,044 M
Debt : $14,043 M
EBITDA : $7,951 M
Net Debt (Debt - Cash): $10,999 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Semiconductors
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 34.56
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $3,557 M
Average Revenue: $14,384 M
Revenue Converted To Free Cash Flow (%): 24.7%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $15,641 M
Revenue 4 Years Ago (2020-12-31): $14,461 M
Last 5 Years Average Revenue Growth: 2%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $919 M
Share Count 5 Years Ago (2020-12-31): $933 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.25
Trailing 12-Month Earnings Per Share (EPS): $5.56
Average Earnings Per Share (EPS): $5.91
Dividend Per Share (DPS): $5
Payout Ratio: 91%
Dividend Yield: 3%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 34.9%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $204
52-Week Low: $138
Threshold Price (15% Above 52-Week Low): $158
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $175,436 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 26 points to above Texas Instruments Incorporated (TXN) stock.
Last 20 Years Avg PE 20.85, Fair Value PE 25, Industry Based PE 25, Growth Based PE 1, RCFC Based PE 29.79, ROE Based PE 37.93, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 22.38. Value-Trades has assined P/E value 22.38. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.905.
The fair value of Texas Instruments Incorporated (TXN) stock should be (22.38 x $5.905) = $132.15.
