Highly Regarded

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

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

29% Discount TTM fundamentals · sector averages from covered peers

TXN trades at 55.7× TTM earnings — a 29% discount to its Technology sector average of 78.1× in our coverage.

The Numbers

P/E (TTM)

55.7×

Sector avg: 78.1×

P/S (TTM)

15.6×

Sector avg: 18.2×

Market Cap

$275.47B

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 $303.53 55.7×
NVDA $195.52 48.4×
AAPL $312.73 39.6×
MSFT $386.79 24.2×
AVGO $373.72 78.3×
AMD $551.70 208.2×
INTC $122.14 —
CSCO $113.98 44.0×
ORCL $143.82 33.3×
PLTR $132.53 308.2×
QCOM $186.38 37.7×
CRM $165.63 24.0×
ADBE $218.11 13.1×

Is the Discount Justified?

July 6, 2026

Texas Instruments trades at a P/E of 55.7x, a discount to the technology sector average of 76.3x. This valuation may reflect its focus on analog and embedded processing, which, while stable, might be perceived as having a different growth profile compared to some higher-growth segments within the broader technology sector. The company reported strong Q1 2026 results, with EPS beating expectations and revenue rising 18.6% year-over-year, marking its eighth consecutive quarter of growth. Texas Instruments anticipates continued growth in its industrial and data center segments. The overall semiconductor industry is experiencing a boom, particularly driven by AI infrastructure demand, with significant revenue growth projected for 2026. TXN's consistent performance and strategic capital returns, however, provide a solid foundation.

Sources

Frequently Asked Questions

Is TXN overvalued or undervalued?
On trailing-twelve-month earnings, TXN trades at 55.7x versus a Technology sector average of 78.1x in our coverage — a 28.7% 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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