Texas Instruments Incorporated (TXN) Financial Ratios
30 years of historical data (1996–2025) · Technology · Semiconductors
EV/EBITDA
↑
34.37
↑+73% vs avg
5yr avg: 19.84
30Y Low5.1·High38.3
P/FCF
↑
101.24
↑+47% vs avg
5yr avg: 69.10
30Y Low8.0·High172.5
P/B Ratio
↓
16.24
↑+54% vs avg
5yr avg: 10.58
30Y Low2.2·High16.7
ROE
↓
30.1%
↑-35% vs avg
5yr avg: 46.3%
30Y Low-3%·High69%
Debt/EBITDA
↑
1.92
↑+34% vs avg
5yr avg: 1.43
30Y Low0.0·High2.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TXN Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Texas Instruments Incorporated trades at 53.1x earnings, 101% above its 5-year average of 26.5x, sitting at the 89th percentile of its historical range. Compared to the Technology sector median P/E of 27.2x, the stock trades at a premium of 95%. On a free-cash-flow basis, the stock trades at 101.2x P/FCF, 47% above the 5-year average of 69.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $263.5B | $158.4B | $172.3B | $156.1B | $153.0B | $176.4B | $153.1B | $122.1B | $93.6B | $105.7B | $74.5B |
| Enterprise Value | $275.7B | $170.6B | $184.2B | $165.4B | $159.4B | $180.0B | $157.1B | $125.5B | $96.2B | $108.1B | $77.0B |
| P/E Ratio → | 53.11 | 31.83 | 36.06 | 24.11 | 17.56 | 22.79 | 27.49 | 24.48 | 16.91 | 28.93 | 20.97 |
| P/S Ratio | 14.90 | 8.96 | 11.02 | 8.91 | 7.64 | 9.62 | 10.59 | 8.49 | 5.93 | 7.06 | 5.57 |
| P/B Ratio | 16.24 | 9.73 | 10.19 | 9.24 | 10.50 | 13.23 | 16.67 | 13.71 | 10.40 | 10.22 | 7.11 |
| P/FCF | 101.24 | 60.85 | 115.03 | 115.75 | 25.83 | 28.03 | 27.89 | 21.05 | 15.44 | 22.64 | 18.25 |
| P/OCF | 36.84 | 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
TXN EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Texas Instruments Incorporated's enterprise value stands at 34.4x EBITDA, 73% above its 5-year average of 19.8x. The Technology sector median is 17.3x, placing the stock at a 99% premium on an enterprise-value basis.
| 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 | 34.37 | 21.26 | 26.14 | 19.31 | 14.34 | 18.15 | 22.82 | 18.53 | 12.55 | 15.47 | 13.25 |
| EV / EBIT | 45.77 | 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 |
TXN Profitability
Margins and return-on-capital ratios measuring operating efficiency
Texas Instruments Incorporated earns an operating margin of 34.1%. Operating margins have compressed from 41.8% to 34.1% over the past 3 years, signaling potential cost pressures or competitive headwinds. Return on equity of 30.1% is exceptionally high. ROIC of 15.8% represents solid returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
TXN Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Texas Instruments Incorporated carries a Debt/EBITDA ratio of 1.9x, which is manageable (34% below the sector average of 2.9x). Net debt stands at $12.2B ($15.4B total debt minus $3.2B cash). Interest coverage of 11.5x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 |
TXN Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Texas Instruments Incorporated's current ratio of 4.35x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 2.83x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 4.55x to 4.35x over the past 3 years.
| 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 |
TXN Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Texas Instruments Incorporated returns 2.5% to shareholders annually — split between a 1.9% dividend yield and 0.6% buyback yield. The payout ratio of 100.0% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 1.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% |
Total Shareholder Return Metrics
| 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 | 2.5% | 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 |
Peer Comparison
Compare TXN with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TXNYou | $264B | 53.1 | 34.4 | 101.2 | 57.0% | 34.1% | 30.1% | 15.8% | 1.9 |
 ADI | $203B | 91.2 | 42.4 | 47.4 | 61.5% | 26.6% | 6.6% | 5.4% | 1.8 |
 MCHP | $56B | -9999.0 | 57.9 | 72.2 | 56.1% | 6.7% | -0.0% | 1.8% | 5.4 |
 STM | $52B | 321.9 | 126.6 | — | 33.9% | 2.7% | 0.9% | 1.3% | 5.3 |
 NXPI | $77B | 38.2 | 20.7 | 31.6 | 54.4% | 27.0% | 20.2% | 13.5% | 3.0 |
 ON | $42B | 364.7 | 29.9 | 29.3 | 32.3% | 12.5% | 1.5% | 6.1% | 2.4 |
 SWKS | $10B | 21.1 | 10.2 | 8.8 | 41.2% | 12.2% | 7.9% | 6.3% | 1.2 |
 QRVO | $8B | 24.6 | 20.8 | 12.1 | 45.9% | 11.2% | 10.1% | 8.1% | 3.8 |
 MPWR | $81B | 129.6 | 102.7 | 121.8 | 55.2% | 26.1% | 18.4% | 22.2% | 0.0 |
 DIOD | $5B | 81.2 | 28.3 | 38.9 | 31.2% | 2.4% | 3.5% | 1.6% | 0.5 |
 SLAB | $7B | -109.4 | — | 108.5 | 58.2% | -9.0% | -6.0% | -6.9% | — |
| Technology Median | — | 27.2 | 17.3 | 19.8 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonTXN — Frequently Asked Questions
Quick answers to the most common questions about buying TXN stock.
What is Texas Instruments Incorporated's P/E ratio?
Texas Instruments Incorporated's current P/E ratio is 53.1x. The historical average is 30.6x. This places it at the 89th percentile of its historical range.
What is Texas Instruments Incorporated's EV/EBITDA?
Texas Instruments Incorporated's current EV/EBITDA is 34.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.0x.
What is Texas Instruments Incorporated's ROE?
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%.
Is TXN stock overvalued?
Based on historical data, Texas Instruments Incorporated is trading at a P/E of 53.1x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Texas Instruments Incorporated's dividend yield?
Texas Instruments Incorporated's current dividend yield is 1.89% with a payout ratio of 100.0%.
What are Texas Instruments Incorporated's profit margins?
Texas Instruments Incorporated has 57.0% gross margin and 34.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Texas Instruments Incorporated have?
Texas Instruments Incorporated's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.