Latest Ratios: P/E Ratio 53.8x · EV/EBITDA 34.8x · ROE 30.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $267.0B | $158.4B | $172.3B | $156.1B | $153.0B | $176.4B | $153.1B | $122.1B | $93.6B | $105.7B | $74.5B |
| Enterprise Value | $279.2B | $170.6B | $184.2B | $165.4B | $159.4B | $180.0B | $157.1B | $125.5B | $96.2B | $108.1B | $77.0B |
| P/E Ratio → | 53.82 | 31.83 | 36.06 | 24.11 | 17.56 | 22.79 | 27.49 | 24.48 | 16.91 | 28.93 | 20.97 |
| P/S Ratio | 15.10 | 8.96 | 11.02 | 8.91 | 7.64 | 9.62 | 10.59 | 8.49 | 5.93 | 7.06 | 5.57 |
| P/B Ratio | 16.46 | 9.73 | 10.19 | 9.24 | 10.50 | 13.23 | 16.67 | 13.71 | 10.40 | 10.22 | 7.11 |
| P/FCF | 102.59 | 60.85 | 115.03 | 115.75 | 25.83 | 28.03 | 27.89 | 21.05 | 15.44 | 22.64 | 18.25 |
| P/OCF | 37.33 | 22.14 | 27.27 | 24.32 | 17.55 | 20.15 | 24.94 | 18.37 | 13.01 | 19.71 | 16.15 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 9.65 | 11.77 | 9.44 | 7.96 | 9.81 | 10.87 | 8.73 | 6.09 | 7.23 | 5.76 |
| EV / EBITDA | 34.80 | 21.26 | 26.14 | 19.31 | 14.34 | 18.15 | 22.82 | 18.53 | 12.55 | 15.47 | 13.25 |
| EV / EBIT | 46.36 | 27.28 | 30.89 | 21.29 | 15.56 | 19.77 | 25.32 | 21.28 | 14.12 | 17.56 | 15.36 |
| EV / FCF | — | 65.53 | 122.94 | 122.64 | 26.92 | 28.60 | 28.62 | 21.63 | 15.88 | 23.16 | 18.85 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 57.0% | 57.0% | 58.1% | 62.9% | 68.8% | 67.5% | 64.1% | 63.7% | 65.1% | 64.3% | 61.6% |
| Operating Margin | 34.1% | 34.1% | 34.9% | 41.8% | 50.6% | 48.8% | 40.8% | 39.8% | 42.5% | 40.7% | 36.3% |
| Net Profit Margin | 28.3% | 28.3% | 30.7% | 37.2% | 43.7% | 42.4% | 38.7% | 34.9% | 35.4% | 24.6% | 26.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.1% | 30.1% | 28.4% | 41.4% | 62.7% | 69.0% | 61.8% | 56.1% | 57.7% | 35.4% | 35.2% |
| ROA | 14.3% | 14.3% | 14.1% | 21.9% | 33.7% | 35.3% | 29.9% | 28.5% | 32.1% | 21.6% | 22.0% |
| ROIC | 15.8% | 15.8% | 14.9% | 23.3% | 40.1% | 44.6% | 34.3% | 35.4% | 41.3% | 35.5% | 28.0% |
| ROCE | 19.0% | 19.0% | 17.9% | 27.5% | 43.8% | 45.9% | 35.9% | 37.5% | 44.7% | 41.2% | 34.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.95 | 0.95 | 0.89 | 0.73 | 0.65 | 0.62 | 0.77 | 0.69 | 0.56 | 0.39 | 0.34 |
| Debt / EBITDA | 1.92 | 1.92 | 2.13 | 1.43 | 0.85 | 0.83 | 1.03 | 0.91 | 0.66 | 0.58 | 0.62 |
| Net Debt / Equity | — | 0.75 | 0.70 | 0.55 | 0.44 | 0.27 | 0.44 | 0.38 | 0.29 | 0.23 | 0.23 |
| Net Debt / EBITDA | 1.52 | 1.52 | 1.68 | 1.09 | 0.58 | 0.36 | 0.58 | 0.50 | 0.34 | 0.35 | 0.42 |
| Debt / FCF | — | 4.67 | 7.90 | 6.90 | 1.09 | 0.57 | 0.73 | 0.58 | 0.43 | 0.52 | 0.60 |
| Interest Coverage | 11.52 | 11.52 | 11.73 | 22.01 | 47.88 | 49.47 | 32.67 | 34.69 | 54.49 | 78.95 | 62.63 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.35 | 4.35 | 4.12 | 4.55 | 4.70 | 5.33 | 4.28 | 4.13 | 3.27 | 3.87 | 3.29 |
| Quick Ratio | 2.83 | 2.83 | 2.88 | 3.35 | 3.77 | 4.58 | 3.47 | 3.18 | 2.38 | 3.00 | 2.50 |
| Cash Ratio | 1.55 | 1.55 | 2.08 | 2.58 | 3.04 | 3.79 | 2.75 | 2.54 | 1.71 | 1.98 | 1.54 |
| Asset Turnover | — | 0.51 | 0.44 | 0.54 | 0.74 | 0.74 | 0.75 | 0.80 | 0.92 | 0.85 | 0.81 |
| Inventory Turnover | 1.58 | 1.58 | 1.45 | 1.63 | 2.27 | 3.12 | 2.66 | 2.61 | 2.48 | 2.73 | 2.87 |
| Days Sales Outstanding | — | 40.52 | 40.11 | 37.23 | 34.54 | 33.85 | 35.69 | 27.26 | 27.91 | 31.18 | 34.59 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.9% | 3.2% | 2.8% | 2.9% | 2.8% | 2.2% | 2.2% | 2.5% | 2.7% | 2.0% | 2.2% |
| Payout Ratio | 100.0% | 100.0% | 99.9% | 70.0% | 49.1% | 50.0% | 61.2% | 60.0% | 45.8% | 57.1% | 45.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 3.1% | 2.8% | 4.1% | 5.7% | 4.4% | 3.6% | 4.1% | 5.9% | 3.5% | 4.8% |
| FCF Yield | 1.0% | 1.6% | 0.9% | 0.9% | 3.9% | 3.6% | 3.6% | 4.8% | 6.5% | 4.4% | 5.5% |
| Buyback Yield | 0.6% | 0.9% | 0.5% | 0.2% | 2.4% | 0.3% | 1.7% | 2.4% | 5.5% | 2.4% | 2.9% |
| Total Shareholder Yield | 2.4% | 4.1% | 3.3% | 3.1% | 5.2% | 2.5% | 3.9% | 4.9% | 8.2% | 4.4% | 5.1% |
| Shares Outstanding | — | $913M | $919M | $916M | $926M | $936M | $933M | $952M | $990M | $1.0B | $1.0B |
Capital intensity margin drag
Based on current market data, TXN trades at a forward P/E of 37.05, which appears to price in significant long-term margin expansion potential despite the near-term earnings volatility inherent in the company's aggressive transition toward a larger, internally-owned 300mm manufacturing footprint compared to its historical asset-light model.
The current valuation multiple suggests that investors are willing to pay a premium for the company's structural cost advantages and the durability of its analog product catalog. However, this valuation may be vulnerable if the anticipated margin benefits from the 300mm transition are delayed by prolonged industrial demand weakness or if the high capital expenditure cycle continues to suppress free cash flow yields.
According to reported financial figures, TXN's ROIC has hovered between 3.3% and 4.9% over the last ten quarters, a trend that suggests the company's massive investment in new fabrication facilities is currently diluting returns on invested capital relative to its historical performance and more asset-light semiconductor peers.
The compression in ROIC reflects the significant upfront capital burden of the Sherman and Lehi fabs, which have yet to reach full utilization. Investors should monitor whether these returns can inflect upward as the new capacity comes online, or if the structural increase in the asset base will permanently reset the company's return profile to a lower, more utility-like level.
As indicated by the latest quarterly data, TXN maintains a high cash conversion cycle of 219 days, driven primarily by a strategic decision to hold elevated inventory levels of 211 days, which serves as a buffer against supply chain disruptions but ties up significant working capital.
While this high inventory level is often criticized, it appears to be a deliberate competitive strategy to ensure product availability for long-lifecycle industrial customers. The efficiency of this approach warrants further investigation, as it creates a structural drag on cash flow that may be misinterpreted as operational sluggishness by those accustomed to just-in-time manufacturing models.
Based on recent balance sheet disclosures, TXN maintains a debt-to-equity ratio of 0.84, a figure that suggests management is utilizing a disciplined borrowing strategy to fund its multi-year capital expenditure cycle while keeping interest coverage at a comfortable 13.16 times as of 2026Q1.
The company's ability to maintain such a conservative leverage profile despite the massive scale of its current investment phase provides a significant buffer against cyclical downturns. This financial flexibility appears to be a core component of the company's risk management, allowing it to continue investing through industry troughs when competitors might be forced to retrench.
The P/FCF ratio is frequently misapplied to TXN, as the current 99.83 multiple fails to account for the fact that a large portion of current capital expenditure is non-recurring growth investment rather than maintenance, thereby artificially depressing the company's perceived cash-generative power in the eyes of the market.
Analysts should instead focus on normalized free cash flow or EBITDA-based metrics to better capture the underlying earning power of the business. Relying on raw P/FCF during this specific investment cycle likely obscures the long-term value creation potential of the 300mm transition and may lead to an overly pessimistic assessment of the company's true cash-generating capabilities.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TXN stock.
Texas Instruments Incorporated's current P/E ratio is 53.8x. The historical average is 30.6x. This places it at the 89th percentile of its historical range.
Texas Instruments Incorporated's current EV/EBITDA is 34.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.0x.
Texas Instruments Incorporated's return on equity (ROE) is 30.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 28.4%.
Based on historical data, Texas Instruments Incorporated is trading at a P/E of 53.8x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Texas Instruments Incorporated's current dividend yield is 1.87% with a payout ratio of 100.0%.
Texas Instruments Incorporated has 57.0% gross margin and 34.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Texas Instruments Incorporated's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.