Fundamentals · TXN
Valuation Summary for TXN
AI-generated plain-English read of valuation summary for TXN. Updated daily.
Rich multiples, compressing
moderateMultiples (22.6x) are rich but compressing: the premium is beginning to unwind. Watch whether compression stabilises at fair territory or overshoots into cheap.
What will probably happen
- Multiple compression is ongoing. Expect continued price pressure unless earnings revisions reverse the trend.
What to do
- If you HOLD this stock
- Valuation doesn't give a strong signal for or against adding. Hold and monitor earnings delivery against the current multiple.
- If you're EVALUATING this stock
- Expensive entry. If you must own it, wait for a 10–15% multiple compression or a significant earnings beat that 'grows into' the valuation.
- If you trade OPTIONS
- Sell covered calls to reduce effective cost basis while waiting for multiple normalisation. Long puts make sense if you expect a near-term earnings miss to catalyse compression.
12 quarters / 3 populated multiples: directionally informative; use more data for full conviction.
Technical details
Technical analysis
- P/Book
- 10.6x
- P/Sales
- 6.6x
- EV/EBITDA
- --
- FCF yield
- --
- EV/Revenue
- --
- P/E (forward)
- --
- Dividend yield
- --
- Earnings yield
- --
- Income profile
- Growth Profile
- P/E (trailing)
- 22.6x
- Sector context
- Semiconductors
- Sector comparison
- Unknown Vs Sector
- Absolute valuation
- Richly Valued
- History (quarters)
- 12
- Multiple trajectory
- Compressing
Key levels
| Level | Value |
|---|---|
| pb ratio | 10.576 |
| pe ratio | 22.63 |
| ps ratio | 6.583 |
| n quarters | 12 |
| current price | 303.6 |
| prior year pe | 33.458 |
Caveats
- Multiples should be read alongside growth and quality metrics: a low P/E on declining earnings isn't cheap, it's a value trap warning.
- Sector context wasn't provided; absolute multiples may mislead without industry comparison.