Texas Instruments Incorporated (TXN) DCF Valuation
Two independent models estimate Texas Instruments Incorporated's fair value between $38.51 (conservative case) and $52.76 (analyst consensus).
What would today's price require?
$282.68 is justified only if free cash flow grows about +29.1% a year for the next decade — faster than the company has actually grown.
Current Price
$282.68
Fair-Value Range
$38.51 – $52.76
Market-Implied Growth
+29.1%/yr
vs -10.1% 5Y actual
TXN DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $2.8B · 0.91B shares · net debt $11.6B
Estimated Fair Value
$38.51
-86.4% vs $282.68
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $282.68; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $50.94 | $54.20 | $58.06 | $62.68 | $68.34 |
| 9.0% | $41.96 | $44.19 | $46.77 | $49.77 | $53.32 |
| 10.0% | $35.12 | $36.71 | $38.51 | $40.56 | $42.93 |
| 11.0% | $29.75 | $30.91 | $32.21 | $33.67 | $35.33 |
| 12.0% | $25.42 | $26.29 | $27.26 | $28.33 | $29.53 |
About Texas Instruments Incorporated
Texas Instruments Incorporated (TI) specializes in the global design, production, and sale of semiconductors to electronics engineers and manufacturers. Its operations are structured into two core segments: Analog and Embedded Processing. The Analog division provides a comprehensive suite of power management products, such as battery-management solutions, various DC/DC and AC/DC switching regulators and controllers, power switches, linear regulators, voltage supervisors, references, and lighting components, all critical for managing diverse power needs. This segment also delivers signal chain products designed to sense, condition, and measure electrical signals, facilitating information transfer or conversion for further processing and control, encompassing items like amplifiers, data converters, interface devices, motor drives, clocks, and sensing technologies. The Embedded Processing segment develops microcontrollers, integral to a wide array of electronic equipment; digital signal processors (DSPs) for complex mathematical computations; and applications processors tailored for specific computing tasks. Products from this segment are utilized across numerous markets, including industrial applications, the automotive sector, personal electronics, communication systems, enterprise solutions, and calculators. Beyond these, TI also produces DLP® products, primarily used in projectors to generate high-definition images; a range of calculators; and custom application-specific integrated circuits (ASICs). The company distributes its semiconductor offerings through a direct sales force, its network of authorized distributors, and its official website. Established in 1930, Texas Instruments is headquartered in Dallas, Texas.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Haviv Ilan