Is Texas Instruments Incorporated overvalued or undervalued?

As of 26 September 2025, the valuation grade for Texas Instruments Incorporated has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 68, a Price to Book Value of 20.24, and an EV to EBITDA of 47.44. In comparison to peers, NVIDIA Corp. has a more attractive P/E of 47.72, while Broadcom Inc. is considered expensive with a P/E of 82.00.
Despite its fair valuation, Texas Instruments has underperformed against the S&P 500 over the past year, with a return of -11.81% compared to the index's 15.64%. However, over a three-year period, it has shown a positive return of 15.01%, although this still lags significantly behind the S&P 500's 81.77%.