Is Texas Instruments Incorporated overvalued or undervalued?

Sep 20 2025 05:43 PM IST
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As of September 11, 2025, Texas Instruments is fairly valued with a P/E ratio of 68, an EV to EBITDA of 47.44, and a Price to Book Value of 20.24, showing competitive positioning against peers like NVIDIA and Broadcom, but has underperformed the S&P 500 with a 1Y return of -9.51%.
As of 11 September 2025, the valuation grade for Texas Instruments Incorporated has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 68, an EV to EBITDA of 47.44, and a Price to Book Value of 20.24, which suggest that while the company is not undervalued, it is also not excessively priced compared to its peers.

In comparison to its peers, Texas Instruments has a P/E ratio that is higher than NVIDIA Corp. at 47.72 and lower than Broadcom Inc. at 82.00, indicating a competitive positioning within the industry. Additionally, the company's ROE stands at 29.55%, reflecting strong profitability relative to its equity. However, Texas Instruments has underperformed against the S&P 500 in recent periods, with a 1Y return of -9.51% compared to the S&P 500's 17.14%, which highlights the need for cautious optimism regarding its valuation.
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