Latest Ratios: P/E Ratio 49.7x · EV/EBITDA 32.4x · 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 | $247.4B | $158.4B | $172.3B | $156.1B | $153.0B | $176.4B | $153.1B | $122.1B | $93.6B | $105.7B | $74.5B |
| Enterprise Value | $259.5B | $170.6B | $184.2B | $165.4B | $159.4B | $180.0B | $157.1B | $125.5B | $96.2B | $108.1B | $77.0B |
| P/E Ratio → | 49.70 | 31.83 | 36.06 | 24.11 | 17.56 | 22.79 | 27.49 | 24.48 | 16.91 | 28.93 | 20.97 |
| P/S Ratio | 13.99 | 8.96 | 11.02 | 8.91 | 7.64 | 9.62 | 10.59 | 8.49 | 5.93 | 7.06 | 5.57 |
| P/B Ratio | 15.20 | 9.73 | 10.19 | 9.24 | 10.50 | 13.23 | 16.67 | 13.71 | 10.40 | 10.22 | 7.11 |
| P/FCF | 95.03 | 60.85 | 115.03 | 115.75 | 25.83 | 28.03 | 27.89 | 21.05 | 15.44 | 22.64 | 18.25 |
| P/OCF | 34.58 | 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 | 32.35 | 21.26 | 26.14 | 19.31 | 14.34 | 18.15 | 22.82 | 18.53 | 12.55 | 15.47 | 13.25 |
| EV / EBIT | 43.09 | 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 | 2.0% | 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 | 2.0% | 3.1% | 2.8% | 4.1% | 5.7% | 4.4% | 3.6% | 4.1% | 5.9% | 3.5% | 4.8% |
| FCF Yield | 1.1% | 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 | 2.6% | 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 |
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 49.7x. 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 32.4x. 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 49.7x. 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 2.02% 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.
Key Metrics
Top Statement Risk
China localization and capex drag
Metrics are mathematically derived from official filings.
Margin Expansion on 300mm Mix
Gross margin reached 61.4% in 2026Q2, up from 57.9% a year earlier, according to the latest quarterly data, reflecting improved utilization and a richer 300mm wafer mix. Operating margin expanded to 42.3%, underscoring significant operating leverage.
The sequential and year-over-year margin expansion appears driven by higher fab utilization and the structural cost advantage of 300mm production, which lowers per-unit costs. However, the EPS miss versus consensus suggests that reported margins may be flattered by non-operating items or tax benefits, warranting scrutiny of the quality of earnings. Investors should monitor whether the elevated gross margin is sustainable as the company ramps new fabs, which could temporarily depress utilization and margins.
ROIC Recovery from Cyclical Trough
ROIC improved to 6.2% in 2026Q2 from 3.5% in 2024Q1, as reported in the quarterly data, indicating a cyclical recovery. Despite this, returns remain below the cost of capital, reflecting the heavy capital intensity of the fab expansion.
The improvement in ROIC is driven by both margin expansion and better asset turnover, as revenue rebounds from the downturn. However, the massive capex program for new fabs in Texas and Utah will likely keep ROIC suppressed in the near term, as the asset base grows faster than operating income. The long-term thesis hinges on whether the 300mm transition can lift structural returns above historical levels, but the current data suggests a multi-year period of capital absorption.
Working Capital Stretch on Inventory Strategy
Cash conversion cycle extended to 212 days in 2026Q2, up from 251 days in 2024Q1, according to the quarterly data, driven by a deliberate inventory build. DIO remains elevated at 200 days, reflecting TXN's strategy to hold buffer stock.
The reduction in CCC from 251 to 212 days is primarily due to faster collection (DSO down from 55 to 40 days) and extended payables (DPO up from 39 to 28 days), but the inventory days remain high. This intentional inventory strategy may support supply assurance and market share gains during shortages, but it ties up capital and could lead to write-downs if demand normalizes. The improvement in DSO suggests better distributor management, but the overall efficiency remains below peers due to the asset-heavy model.
Debt Service Comfortable Despite Capex Surge
Interest coverage improved to 16.87x in 2026Q2 from 10.52x in 2024Q2, as per the quarterly data, while D/EBITDA declined to 5.91 from 8.53. Leverage remains manageable, though elevated debt funds the fab expansion.
The improvement in coverage and deleveraging on an EBITDA basis reflects the strong earnings rebound, but the absolute debt level has risen to $14.1B to finance capex. The D/E ratio of 0.78 is higher than peers like ADI (0.26) but lower than NXPI (1.17), indicating a moderate leverage profile. Given the cyclicality of the semiconductor industry, the fixed-cost nature of the new fabs could strain coverage if demand falters, but current interest coverage provides a comfortable cushion.
Liquidity Buffer Masks Inventory Dependence
Current ratio improved to 4.86 in 2026Q2 from 4.12 in 2024Q4, with quick ratio at 3.44, according to the balance sheet data. However, the high inventory days (200) inflate the current ratio, potentially overstating short-term liquidity.
The liquidity position appears robust, with cash at $3.7B and a current ratio well above 1, but the reliance on inventory as a current asset is a concern. In a severe downturn, inventory may not be easily converted to cash without significant write-downs, given the long lifecycle of analog parts. The quick ratio of 3.44 provides a more conservative view, but the company's ability to weather a demand shock depends on its access to capital markets and the strategic value of its inventory buffer.
Misapplied P/E on Cyclical Earnings
The trailing P/E of 50.59 and forward P/E of 32.69, based on current market data, may mislead investors because TXN's earnings are highly cyclical. Using peak earnings to calculate P/E understates the true valuation, while trough earnings overstate it.
The most commonly misapplied ratio for TXN is the P/E, as it fails to account for the cyclicality of semiconductor earnings. At the peak of the cycle, earnings are inflated, making the P/E appear artificially low, while at the trough, the P/E looks expensive. A more appropriate metric is EV/EBITDA or P/FCF, but even these need adjustment for the elevated capex cycle. Investors should normalize earnings over a full cycle or use a mid-cycle earnings estimate to assess valuation, as the current P/E may not reflect the true earning power of the business.