TXN

Texas Instruments IncorporatedTechnology / SemiconductorsINTACT

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, multiphase controllers and power stages, and lighting products. This segment also provides signal chain products that sense, condition, and measure real-world signals and convert them into data to be transferred or converted for further processing and control, such as amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers, processors, wireless connectivity, and radar products; and applications processors for specific computing activity. It also provides DLP products primarily for use in projecting high-definition images; calculators; and application-specific integrated circuits. Its products are used in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

Share Price
$271.36
52W: $152.73 - $334.03
DCF Fair Value
$116.25
-133.4% Premium
P/E (TTM)
41.3x
ROIC
32%
Operating Margin
42.6%
FCF Yield
1.4%
Debt / Equity
0.78x
Piotroski Score
7/9
Altman Z-Score
2.98
Market Cap
$247.8B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($116.25)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$116.25
MOS Buy Target (-25%)
$87.19
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$271.36
DCF Fair Value
$116.23
-133.5% Premium
$3,545M
$100M$3,545M (Reported)$50,000M
18.0%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$7,100M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$45.9B
PV of Terminal Value
$67.3B
Implied Enterprise Value
$113.2B
Implied Equity Value
$106.1B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$4,183$4,936$5,825$6,873$8,110$8,475$8,856$9,255$9,671$10,107
Present Value (PV)$3,838$4,155$4,498$4,869$5,271$5,053$4,845$4,645$4,453$4,269

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-402.6% Premium
$53.99

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $6.57BVPS: $19.72
Revised Graham Formula-17% Premium
$231.87

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings1.4% Yield
$3.69 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $3.4BYield: 1.4%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER
22.3% CAGR (Next 10 Yrs)

At the current price of $271.36, the market is assuming the business will compound Free Cash Flow at 22.3% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
⚠ High expectations: Leaves minimal margin of safety for operational hiccups.
Autonomous Thesis Underwriting

Surveil TXN with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Texas Instruments Incorporated. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 42.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Texas Instruments Incorporated (TXN) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Texas Instruments Incorporated.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Texas Instruments Incorporated has an estimated DCF intrinsic fair value of $116.25 per share compared to its current market price of $271.36. This represents an estimated 133.4% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $54.00.

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